Everything you need to know about buying property in Japan
Buying property in Japan involves specific fees: the 不動産取得税 (acquisition tax), 登記費用 (registration fees), 印紙税 (stamp duty), and 仲介手数料 (agent commission). Understanding these costs is essential for preparing your budget, whether you are a Japanese resident or a foreign buyer.
不動産取得税: Real Estate Acquisition Tax
The 不動産取得税 (fudosan shutoku zei) is the property acquisition tax in Japan. It applies when purchasing any real estate and consists of two parts: 3% on land value and 3% on the value of a residential building, new or resale (4% for non-residential buildings), reduced rates that apply until 31 March 2027. The calculation base is the assessed value (固定資産評価額), generally 50 to 70% of market value. The residential land base is halved until 31 March 2027, and new housing benefits from a 12 million yen deduction on the building value.
登記費用: Registration Fees
登記費用 (toki hiyo) include the 登録免許税 (registration tax) and 司法書士 (judicial scrivener) fees. The registration tax is 1.5% on the land (instead of 2%, until 31 March 2029) and, for an owner-occupied home, 0.15% on a new building or 0.3% on a resale building (instead of 0.4% and 2%, until 31 March 2027). The judicial scrivener, a licensed professional who handles registration at the 法務局 (Legal Affairs Bureau), charges approximately ¥100,000 to ¥200,000. These fees are mandatory to formalize the property transfer.
印紙税: Japanese Stamp Duty
The 印紙税 (inshi zei) is a stamp duty affixed to the property sale contract. The amount is fixed based on property value: ¥10,000 for properties worth 10 to 50 million, ¥30,000 for 50 to 100 million, and ¥60,000 for 100 to 500 million. These reduced amounts apply to contracts signed until 31 March 2027. Stamp duty must be paid on each original copy of the contract. It's a modest but mandatory cost in any Japanese property transaction.
仲介手数料: Agent Commission
The 仲介手数料 (chukai tesuryo) is the real estate agent commission in Japan. It is capped by law at 3% of price + ¥60,000 before tax, i.e. 3.3% + ¥66,000 including 10% consumption tax for properties over 4 million yen. This commission is paid separately by buyer and seller to their respective agents. Note: when buying directly from a developer (分譲), agent commission typically does not apply. Check whether the property is listed as 仲介 (brokerage) or 売主 (direct sale).
Flat 35: Fixed-Rate Mortgage Program
The Flat 35 (フラット35) is a 35-year fixed-rate mortgage program backed by the Japanese government through the Japan Housing Finance Agency. Rates are among the lowest in the world: approximately 1.5 to 2.0% fixed. Flat 35 is available to permanent residents and, under certain conditions, foreign residents with a work visa. The property must meet specific quality standards. Flat 35S offers additional rate discounts for energy-efficient or earthquake-resistant properties. Minimum down payment is typically 10%.
Buying in Japan as a Foreigner
Japan is one of the few countries where foreigners can buy freely without any nationality or residency restrictions. You do not need a visa or resident status to own property. However, obtaining a mortgage as a non-resident is nearly impossible: Japanese banks typically require a permanent resident visa or at minimum a long-term work visa. Foreign buyers often finance with cash or through banks in their home country. Since 2022, a prior declaration system applies for buyers of certain nationalities near sensitive areas.
固定資産税: Annual Property Tax
The 固定資産税 (kotei shisan zei) is the annual property tax in Japan, equivalent to property tax in other countries. The standard rate is 1.4% of the assessed value. An additional 都市計画税 (city planning tax) of 0.3% applies in urban areas. For residential land under 200 m2, the tax base is reduced to 1/6 for property tax and 1/3 for planning tax. New properties benefit from a 50% reduction for 3 to 5 years. Payments are typically made in 4 quarterly installments.
SUUMO and Japanese Property Portals
SUUMO is Japan's largest property portal, published by Recruit. It lists millions of sales and rental listings nationwide. Other popular portals include Homes.co.jp, at home, and LIFULL HOME'S. For UR (Urban Renaissance Agency) properties, check the official UR website offering public housing. Prices in Japan are often expressed in 万円 (man-en, units of 10,000 yen): for example, 4,000万円 = 40,000,000 yen. Listings show floor area in m2 and rooms in Japanese format (e.g., 3LDK = 3 bedrooms + Living-Dining-Kitchen).