The Japanese government has announced a series of new measures aimed at improving transparency around who owns land and buildings in Japan, particularly in relation to foreign ownership.
On December 16, the Ministry of Justice announced that individuals acquiring real estate in Japan will be required to disclose their nationality when registering ownership. This requirement will apply to ownership transfers such as purchases and inheritances.
Under the new system, real estate registration forms will include a field for nationality, and applicants will be asked to submit identification documents—such as a passport or resident record—to verify this information. Importantly, Japanese nationals will also be required to provide nationality information, not only foreigners.
To protect privacy, nationality data will not appear on public real estate registers, which are accessible to third parties at Legal Affairs Bureau offices. Instead, the information will be stored internally by the government.
Following a public comment period, the Ministry plans to revise the relevant ministerial ordinance within the current fiscal year, with operations starting in fiscal year 2026.
In parallel, the Digital Agency plans to establish a government-wide database to share nationality information by fiscal year 2027. This will be done using its existing “Real Estate Base Registry,” enabling better coordination across government agencies.
Separately, Yasuyuki Kaneko, Minister of Land, Infrastructure, Transport and Tourism, stated that from April 2026, foreign corporations purchasing large-scale land will be required to report the nationality of their representatives. For individuals, nationality reporting requirements had already been introduced in July 2025. These measures are intended to allow the government to more accurately monitor land use and prevent inappropriate use of sensitive areas such as water sources and forests.
Prime Minister Sanae Takaichi had previously instructed relevant ministries, at a cabinet-level meeting in November, to strengthen nationality tracking at the time of ownership transfer and to make effective use of centralized databases.
Furthermore, the ruling Liberal Democratic Party and the Japan Innovation Party have agreed to draft legislation during the 2026 regular Diet session to further tighten regulations on land acquisitions by foreign individuals and foreign capital. The current measures are seen as a first step toward clarifying the realities of real estate transactions and laying the groundwork for stricter oversight in the future.
What This Means for Foreign Buyers
For most foreign individuals buying property in Japan, this is primarily a transparency and reporting change, not a ban or restriction.
Foreigners will still be allowed to purchase real estate in Japan as before. However, going forward, you should expect additional paperwork at the registration stage, specifically:
You will be required to declare your nationality when registering ownership (for purchases, inheritances, etc.).
You will need to submit official identification—such as a passport or residence record—to confirm your nationality.
This information will be kept internally by the government and will not appear on public property records, so your personal details will not be visible to third parties.
For foreign buyers, this means:
Slightly more documentation, but no fundamental change to eligibility.
Longer or more detailed registration procedures, especially for first-time buyers.
Increased importance of working with professionals who are familiar with the updated process.
Overall, these measures signal that Japan is moving toward greater oversight and data accuracy, rather than closing its real estate market. Foreign buyers who approach purchases properly, and with clear documentation and professional guidance, should not expect major obstacles, but they should be prepared for more formal compliance going forward.
👉 To learn more about Japan’s real estate registration system, check out this article.
If you are considering a property purchase in Japan, I’d be happy to assist you. I specialize in serving international clients and provide clear, detailed explanations of Japan’s real estate system and local practices for those unfamiliar with the market. By leveraging the strengths and global network of RE/MAX, I offer reliable, well-informed support throughout the entire process. Initial consultations are completely.
When buying real estate, the way ownership rights are protected differs greatly from country to country. Each nation has its own legal framework for recording and securing property ownership — and for many buyers, closing on a property is often a moment of both relief and excitement.
In Japan, this key step is known as real estate registration (fudōsan tōki, 不動産登記). It plays a central role in confirming and protecting ownership, ensuring that your rights are legally recognized and transparent.
Registration in Japan is not merely a formality; it is what gives ownership its legal power against third parties. Without registration, ownership may exist in theory, but not in practice.
Even if you have acquired ownership through a legitimate transaction, failure to complete registration means you cannot assert your ownership against a third party who has properly registered their rights, and in the worst case, you may be forced to hand over the property despite having paid for it.
A Little Bit of History Behind Japan’s Real Estate Registration System
While many countries have some form of property registration, Japan has developed its own version of real estate registration: a system rooted in continental European civil law but refined through Japan’s legal and cultural evolution.
During the Meiji era, Japan was modernizing its legal infrastructure by adopting Western legal concepts, and it drew heavily on civil law systems from continental Europe. However, Japanese society was distinct in many ways:
Private land transactions were already common.
The land title system (chiken seido) was immature.
Legal culture emphasized actual possession and private contracts over state authority.
Legal culture emphasized actual possession and private contracts over state authority.
As a result, Japan gradually formed its own model—one that evolved from European civil law principles but adapted to Japan’s social and economic realities.
Thus, Japan’s system shifted from “state-guaranteed ownership creation” to “public registration of private agreements.” The government acts as a neutral recorder, not the guarantor, of ownership.
Situations Where Real Estate Registration Is Done
In Japan, registration of a newly built property is legally mandatory; this is called the Building Description Registration (tatemono hyōdai tōki).
However, registration after purchasing an existing property is not strictly required by law. That said, it is almost always carried out in practice, because without registration, your ownership rights may not be legally protected against third parties.
From April 2024, one specific type of registration — inheritance (succession) registration — has become legally mandatory.
Even when registration itself is not an obligation, it is considered an essential step for protecting your ownership and ensuring the transaction is properly recorded.
The following are the typical situations where real estate registration is carried out in Japan:
1. When You Acquire Property
For purchases, inheritance, or construction of a new building:
Transfer of Ownership Registration (shoyūken iten tōki)
After moving or changing your surname, file a Change of Address/Name Registration so your information stays accurate.
3. When the Owner Passes Away
Heirs register the Transfer of Ownership by Inheritance to show succession of title. (This type of registration became mandatory in April 2024.)
4. When a Mortgage Is Paid Off
After full repayment, the Mortgage Cancellation Registration (teitōken masshō tōki) is filed to remove the lien.
5. When a Building Is Demolished
A Building Demolition Registration (tesshitsu tōki) is filed to remove the building from the record.
How the Registration Process Works
In Japan, it is not legally required to hire a Judicial Scrivener (Shiho-shoshi, 司法書士) to complete real estate registration. Anyone — including the property owner — can technically file the application on their own.
Staff at the Legal Affairs Bureau (Hōmukyoku) are generally helpful and will explain the procedures or advise how to correct any mistakes if the application is incomplete. So, if you are patient and careful, it is entirely possible to complete the registration yourself.
However, in real estate transactions involving large sums of money, there is always a risk if the registration is not completed properly or promptly. Unless the registration is completed in your name, your ownership is not legally protected, and unexpected problems could occur. For this reason, it is standard practice to ask a Judicial Scrivener to handle the registration, ensuring that ownership is accurately and safely recorded at the same time the payment is made.
Step-by-Step Process
Application The application form and required documents are submitted to the Legal Affairs Bureau that has jurisdiction over the property.
Examination The Bureau reviews and verifies the documents. This review period typically takes about 1–2 weeks, depending on complexity and regional workload.
Completion of Registration Once the examination is finished, the new ownership or rights are officially entered into the registry. When the new owner’s information is registered, a Registration Identification Notice is issued. This document replaces the old Title Deed and consists of a 12-digit alphanumeric code identifying the registered owner. It is an important document required when selling the property, so it should be kept in a safe place. Although the Registration Identification Notice cannot be reissued, alternative procedures are available if it is lost — such as verification through a judicial scrivener or identification affidavit during future transactions. In addition, once the registration is completed, a Certificate of Completion of Registration is also issued. While this certificate cannot be reissued, it is not as critical as the Registration Identification Notice, so losing or disposing of it does not cause legal problems.
Issuance or Delivery of Documents
In-person pickup: After the expected completion date, you can collect the documents at the Legal Affairs Bureau counter.
By mail: If you opted for postal delivery, the Registration Identification Notice or Certificate of Completion will be sent, usually by registered mail. In this case, allow an additional few days — the entire process from application to document arrival may take about 2–3 weeks in total.
Documents Commonly Required
The documents required for registration vary depending on the cause of registration — such as sale, inheritance, gift, or mortgage cancellation. Always confirm the specific requirements with your Judicial Scrivener or the Legal Affairs Bureau (Hōmukyoku) before submission.
Common documents include:
Power of Attorney (if a scrivener acts for you)
Application Form (available on the Ministry of Justice website)
ID Verification (passport, residence card, or My Number card)
Supporting Documents such as:
Deed of sale or inheritance certificate
Mortgage discharge documents
Reading and Understanding the Real Estate Register in Japan
In Japan, land and building registry records are publicly accessible. Anyone can obtain a copy of a property’s Real Estate Register (登記事項証明書, tōkijikō shōmeisho) by paying a small administrative fee at the Legal Affairs Bureau or online.
From this record, you can find who owns a property, what rights or mortgages are attached, and even trace how ownership has changed over time — sometimes revealing the unique “story” of a property’s history.
Before purchasing, the seller or agent usually provides a copy, but buyers should always review it themselves carefully. Below are the key sections and what to look for when reading a Japanese property registry:
1. Title Section (Hyōdaibu): Physical Details of the Property
Lists the basic physical information about the property. Be sure all entries match the property you intend to purchase.
Location (Address, Lot Number, Building Number) – Confirm that it matches the actual site.
Land Category / Building Type and Structure – Ensure the registered use (e.g., residential land, farmland) matches current use. Note: Using farmland as residential land requires special permission.
Land Area / Floor Area – Compare with your sales contract and property summary; if different, ask why.
Construction Date and Cause – Check the building’s year and registration basis.
2. Rights Section A (Kōku – 甲区): Ownership Information
Shows who legally owns the property and any limits on that ownership.
Current Owner: Confirm that the seller’s name and address match the registry.
Ownership History: Review for frequent transfers or complex inheritance chains.
Seizure or Provisional Disposition: Avoid properties with these legal claims.
3. Rights Section B (Otsuku – 乙区): Other Rights and Encumbrances
Lists non-ownership rights, such as loans, mortgages, or easements.
Mortgages / Revolving Mortgages: Identify any collateral rights.
Mortgage Cancellation: Confirm that repayment and release will be done at transfer.
Easements / Lease Rights: Check for usage restrictions or long-term leases.
Provisional Registration: Look for kari-tōki, indicating pending claims.
Why Reviewing the Register Matters
Reading the registry helps confirm true ownership, debt-free status, and legal security of the property, which are essential for a safe and transparent transaction.
Registration and Professional Fees in Japan
Registration and License Tax (Tōroku Menkyozei)
This is a national tax imposed when registration is made. In general, the tax base for the registration and license tax is the assessed value (valuation) recorded in the Fixed Asset Tax Ledger or the Fixed Asset Tax Statement. If no such value is registered, the Legal Affairs Bureau (registrar) determines the valuation to be used as the tax base.
For a transfer of ownership, the registration and license tax is calculated as 2% of the property’s appraised value. However, tax reduction measures are available under certain conditions, so the actual amount payable is often lower than this standard rate.
Professional Fees for Judicial Scriveners (Shiho-shoshi) and Land & House Surveyors
Real estate registrations are generally handled by Judicial Scriveners (Shiho-shoshi), while Land & House Surveyors (Tochi-kōka-chōsa-shi) manage “title description” registrations, such as for newly built houses.
Fees vary widely depending on region and office, but the typical cost for a transfer of ownership registration in Japan ranges from approximately ¥50,000 to ¥100,000.
Additional costs may apply:
Travel fees if the scrivener attends settlement at a bank or seller’s office.
Identification report fee when the seller is not personally known to the scrivener.
Why Japan’s System Is So Reliable
As mentioned above, Japan’s real estate registration is based on a paper examination system, in which registrars review submitted documents rather than conduct on-site inspections. While the government ensures procedural integrity, it does not guarantee the factual accuracy of the registered information.
Even so, Japan’s registration system has earned a reputation for remarkable reliability, thanks to its precision, consistency, and openness. This trust is supported by several key features:
Administered nationwide by the Ministry of Justice
Digitized and standardized across all regions
Fraud or clerical errors are extremely rare and legally correctable
Public access to records, promoting transparency and market confidence
Final Thoughts
Legal systems can be complex, and even more so when you’re dealing with it in a foreign country. I hope this article has helped you better understand how Japan’s real estate registration system works. With the guidance of qualified professionals such as judicial scriveners and real estate agents, you can feel confident that your property transaction in Japan will be handled safely and smoothly.
Disclaimer: The information in this article is provided for general informational purposes only and does not constitute legal advice. While every effort has been made to ensure accuracy, the content may not reflect the most current legal developments. Readers should consult a qualified professional for advice on their specific situation.
Note:
In December 2025, the Ministry of Justice announced that individuals acquiring real estate in Japan will be required to disclose their nationality when registering ownership.
If you are considering a property purchase in Japan, I’d be happy to assist you. I specialize in serving international clients and provide clear, detailed explanations of Japan’s real estate system and local practices for those unfamiliar with the market. By leveraging the strengths and global network of RE/MAX, I offer reliable, well-informed support throughout the entire process. Initial consultations are completely.
1. Japan’s Real Estate Market Continues to Attract Global Investors
Japan has long been one of the most attractive real estate markets in Asia, known for its economic stability, clear legal system, and world-class infrastructure. In recent years, its appeal has grown even further — driven by steady economic recovery, the perception that Japanese property remains relatively affordable compared with other major global cities, and the weakened yen, which makes assets in Japan even more enticing for foreign investors.
According to CBRE’s Japan Investment Market Report (2024), foreign investors accounted for roughly 30% of all property transactions in Japan, up from about 24% before the pandemic. A March 2025 survey by Mitsubishi UFJ Trust and Banking Corporation found that in Tokyo’s 23 wards, between 20% and 40% of newly built condominium units were purchased by foreign buyers — including individuals, institutional funds, and high-net-worth investors (HNWIs).
This international interest reflects Japan’s strong fundamentals: stable prices, low interest rates, high-quality infrastructure, and a safe, comfortable living environment.
2. Rising Concerns and Potential Regulations Ahead
Japan’s growing foreign demand has sparked debate that it may be contributing to rising real estate prices, particularly in central Tokyo and Kyoto.
Countries such as Singapore, South Korea, Canada, China, and more recently Australia have all introduced strict regulations limiting or prohibiting property purchases by foreign nationals. In contrast, Japan currently allows foreigners to freely buy real estate, whether for residential or investment purposes, without any visa or residency requirement. This open policy is one reason Japan continues to attract overseas investors seeking both stable returns and lifestyle benefits.
However, as international scrutiny grows and housing affordability becomes a public concern, Japan may eventually follow the trend of tightening rules. Indeed, the October 2025 revision of the Business Manager Visa requirements signals a more cautious stance toward inbound investment overall.
For now, foreigners can still purchase and own property in Japan with few restrictions, but staying informed about future policy shifts is increasingly important.
3. Step-by-Step Guide: How to Buy Real Estate in Japan as a Foreigner
The buying process depends on whether you are purchasing a new development (sold in lots) or a pre-owned property (through a brokerage).
3.1 How to Find a Property in Japan
Foreign buyers in Japan typically follow a similar process, whether purchasing a newly built condominium (from a developer) or a pre-owned property (through a brokerage). While transaction channels differ slightly, the overall flow remains largely the same.
Step 1: Find a Property and Choose an Agent
Properties in Japan can be found through:
Online listing sites such as SUUMO, Realestate Japan, or At Home
Newspaper or magazine advertisements
Licensed local real estate agents
Japan operates a mandatory listing system called REINS, a database that all licensed real estate agents can access. This ensures transparency—every agent sees the same listings. However, negotiation skills, communication quality, and responsiveness differ greatly between agents, so selecting a proactive one can make a big difference.
Step 2: View the Property and Plan Your Finances
Once you’ve identified promising properties, schedule viewings. Agents can arrange both in-person and virtual tours. During this stage, you’ll also plan your financing—especially important if you intend to apply for a mortgage (though, as explained later, foreign buyers without residence in Japan often need to purchase in cash).
Step 3: Make an Offer
If you wish to buy, you’ll submit a written purchase offer. For new developments, this is usually done directly with the developer; for resale properties, it’s submitted through your broker.
Step 4: Legal Explanation and Contract
Before signing, the agent or developer must provide a legally required document called the Explanation of Important Matters (Jūyō jikō setsumeisho). This outlines ownership rights, property conditions, taxes, and any potential risks.
After reviewing and accepting the terms, you’ll sign a sales contract and pay a deposit (Tetsuke-kin), usually 10–20% of the purchase price.
Step 5: Mortgage Screening (if applicable)
Buyers seeking financing must undergo bank and guarantor company screening. This process can take from a few days to several weeks, depending on your visa status and income source.
Step 6: Final Payment, Handover, and Registration
After final payment, ownership is officially transferred. A Judicial Scrivener (Shihō Shoshi) usually handles the registration process at the Legal Affairs Bureau to ensure legal accuracy as explained further below. Once registration is complete, you’ll receive your title deed and keys.
Tip: Japan’s registration system is transparent and secure, protecting both local and foreign buyers.
4. Financing: Can Foreigners Get a Loan in Japan?
Japan’s low interest rates (typically 0.5–2%) are appealing, and I often receive inquiries from clients asking whether foreign buyers can obtain local financing. Unfortunately, in practice, foreigners without a long-term base in Japan rarely qualify for such mortgages.
Most Japanese lenders require:
Long-term visa or residence status
Stable domestic income and tax record
A Japanese bank account
While other factors matter, the most fundamental requirement is to have a long-term residence status and a stable living base in Japan. Without these, Japanese banks generally do not lend to foreign buyers.
In practice: Foreign investors who live overseas and have no Japanese base almost always purchase properties in cash, which is standard in Japan’s market.
5. Real Estate Broker Commissions
Under the Building Lots and Buildings Transaction Business Act, brokerage commissions are legally capped as follows:
Property Price
Maximum Commission (before tax)
Up to ¥2 million
5% of sale price
¥2–4 million
4% of sale price + ¥20,000
Over ¥4 million
3% of sale price + ¥60,000
In most cases, you only pay your own agent’s commission, not the seller’s agent. Each party compensates their own respective broker. This differs from markets such as the United States, where sellers typically pay the total commission that is split between both agents.
6. Judicial Scrivener (Shihō Shoshi) and Registration Costs
Technically, buyers can register the property themselves, but the process is highly specialized, and Judicial Scriveners play a crucial role in ensuring the accuracy and safety of the transaction. For this reason, even Japanese nationals almost always hire a Judicial Scrivener to handle registration.
Average scrivener fee: ¥50,000–¥150,000 (≈ USD 330–990)
Registration license tax: about 0.4–2% of assessed value
Administrative & stamp fees: several thousand yen
Example: For a ¥50 million apartment, expect total registration-related expenses of ¥200,000–¥450,000 (≈ USD 1,300–3,000), depending on complexity.
7. Real Estate Acquisition Tax (Fudōsan Shutokuzei)
This is a one-time local tax due after purchase.
Property Type
Tax Rate
Land
3% (temporary reduction from 4%)
Buildings
3% (for standard residential)
Example: A condominium assessed at ¥40 million incurs roughly ¥1.2 million (≈ USD 8,000) in acquisition tax. Tax reductions may apply for residential use under a certain condition.
8. Ongoing Ownership and Maintenance Costs
Owning real estate in Japan involves several annual expenses. The following are reference ranges only — actual amounts vary by location, property age, and management structure.
Expense Type
Typical Range
Description
Fixed Asset Tax
~1.4% of assessed value
Paid yearly to the local government
City Planning Tax
0.3% of assessed value
Applies in designated city zones
Condominium Management Fee
¥10,000–¥30,000/month (≈ USD 65–200)
Common-area maintenance, cleaning, and security
Repair Reserve Fund
¥10,000–¥20,000/month (≈ USD 65–130)
Long-term building repair and renewal
Fire / Earthquake Insurance
¥10,000–¥30,000/year
Strongly recommended
Property Management Company (optional)
5–10% of rent
If leasing to tenants
Note: These figures are for reference only. Actual costs depend on the property and local tax rates.
9. Final Thoughts
Japan’s real estate market remains strong, transparent, and globally appealing, supported by a stable legal framework and solid economic fundamentals. However, as policies evolve, such as the October 2025 tightening of Business Manager Visa requirements, the degree of openness to foreign buyers may gradually change.
If you are considering investing in or purchasing property in Japan, it is highly recommended to seek professional guidance from experts familiar with both Japanese regulations and international investment practices. Feel free to contact me for consultation. I can help you navigate the process smoothly and make informed decisions in Japan’s evolving real estate landscape.
Disclaimer: This article is based on information available at the time of writing and is intended for general informational purposes only. It does not guarantee accuracy or completeness. Please consult qualified professionals for up-to-date legal, financial, or tax advice.
