Buying a Home in Japan
as a Foreigner

Yes, foreigners can buy property in Japan. Unlike some countries, Japan places no citizenship or residency requirements on property ownership. Foreign buyers have the same ownership rights as Japanese citizens for land and houses.

This means you can purchase a traditional house (including akiya - abandoned homes) or land to build on, legally and outright.

Focus of this Guide: This guide walks you through 5 key steps to buying a home in Japan as a foreigner in 2026, with emphasis on residential houses and land (including akiya and rural properties). We won't dive into condos or investment properties. We'll also cover financing vs. cash, costs and taxes, and post-purchase obligations.

This is where Japan is fundamentally different from the West, and where most foreigners get confused.

Buildings Depreciate. Land Doesn't.

In Japan, houses are typically considered worthless after 20-30 years. Not "worth less" - literally worthless. The tax system depreciates wooden structures to zero over 22 years. This isn't a flaw - it's by design.

Post-war Japan built fast and cheap. Homes weren't meant to last generations. The cultural expectation is that you'll tear down and rebuild, not renovate and maintain. This is slowly changing, but it's still the default mindset.

What This Means for You

• A ¥5 million house on ¥3 million of land means the building is valued at ¥2 million - but that building value will approach zero over time.
• If you're buying for investment appreciation, you're betting on land value, not building value.
• If you're buying for personal use or rental income, the building's income potential matters more than its "value."

Land Value vs Building Value

When evaluating a property, mentally separate these two things:

• Land value (土地): Determined by location, size, road access, zoning. This is what holds or gains value over time.
• Building value (建物): Depreciates toward zero. Older buildings may have negative value (cost to demolish).

Some listings show "land only" (土地のみ) or "building to be demolished" (古家付き / 解体予定) - meaning the building is worth nothing or less than nothing. You're buying the land.

Japan's regions vary dramatically, so your first step is deciding where in Japan best fits your lifestyle and goals.

Ask yourself what kind of environment you want: bustling city, quiet countryside, island life, snowy mountains? Japan has 47 prefectures, each with unique climate, culture, and cost-of-living.

Factors to Consider When Picking a Location

• Climate and Geography: Northern areas (Hokkaido, Tohoku) have cold winters with heavy snow; southern islands (Okinawa) are subtropical. Mountainous regions offer hiking and skiing; coastal areas offer beaches.
• Urban vs Rural: Major cities (Tokyo, Osaka, Fukuoka) have more job opportunities and services but higher prices. Rural towns offer space and low prices but fewer conveniences.
• Community and Culture: In small towns, you'll be more immersed in local traditions. Think about whether you want to integrate into a community (helpful if you speak some Japanese).

Research Property Programs

Some regions actively welcome new residents to revitalize towns and may offer incentives like renovation subsidies. Akiya initiatives vary by town - certain villages prioritize buyers who will live there year-round or renovate properly.

With your target region chosen, it's time to start house-hunting. Japan has many listing platforms - some Japan-wide (mostly Japanese), others catering to English speakers.

English-Language Real Estate Sites

Local "Akiya Bank" Databases

Many municipalities have official Akiya Banks (空き家バンク) - online databases of vacant houses maintained by local governments. These are often Japanese-only and can be clunky, but sometimes have great deals that never make it to the big sites.

Real Estate Agents and Brokers

Don't overlook local real estate agents. A local realtor in your chosen area may know of unlisted properties. If language is an issue, find agencies specializing in foreign clients or use buyer's agent services.

Japan had approximately 9 million vacant homes (13.8% of all housing stock, per the October 2023 survey). That's why "akiya" listings exist - abandoned or vacant houses that municipalities want occupied. But "0 yen" doesn't mean "no strings attached." It usually means the purchase price is close to nothing because the town cares more about occupancy, maintenance, and community stability than sale proceeds.

What Exactly is an Akiya?

An akiya (空き家) is simply a vacant house, often found in rural or semi-rural Japan. Due to Japan's aging population and urban migration, millions of homes sit empty. Many are older traditional homes (kominka) that need renovation, but some are in decent condition. Local governments list these for very low prices - even free - to attract new residents and revitalize communities.

The 5 Most Common Akiya Bank Conditions

Akiya Bank programs often have conditions that vary by municipality. Here are the most common:

• Residency intent: Many programs prioritize buyers who will actually live there and join the community (not leave it empty again). Some explicitly require you to move in within a timeframe (e.g., 6-12 months).
• No flipping / no subleasing: Some municipalities explicitly refuse applicants planning to resell (転売) or sublet (転貸). They want long-term residents, not investors.
• Screening requirements: Some require "good standing" checks (e.g., no local tax delinquency, not connected to organized crime).
• Use of designated local partners: Some Akiya Banks route deals through cooperating local real estate companies.
• Timelines & maintenance expectations: It's common to see requirements like "start repairs within X months" or "maintain the property to certain standards."

Municipal Attitudes Toward Foreign Buyers

In small towns, newcomers (especially foreigners) might face initial wariness. Some municipalities or sellers may be hesitant to deal with foreign buyers - not due to formal policy, but due to language barriers or concerns the buyer won't follow through on commitments.

If you encounter lukewarm responses, don't take it personally. Here's what helps:

• Demonstrate serious intent: Emphasize your plans to live in and care for the property
• Use Japanese communication: Even machine-translated emails in Japanese get better responses than English
• Have a Japanese friend or agent call: This can break the impasse immediately
• Show you have support: Once officials see you have help handling language and legal matters, they become more comfortable

English-Language Akiya Platforms

Given the language barrier (most official akiya bank sites are Japanese-only), several English platforms have emerged:

Most of these services charge either subscription fees (~$90-120/year) or standard agent commission (~3% of purchase price). Clarify fees upfront.

Don't Forget Traditional Japanese Real Estate Sites

Not every cheap old house is listed on an akiya bank. Regular Japanese real estate portals also have many secondhand homes, some quite inexpensive:

These sites are in Japanese and usually feature properties handled by realtors (with agent fees), whereas akiya banks may have owner-direct or government-facilitated offers. Still worth checking - you might find a hidden gem. If you use them, consider hiring a Japanese buyer's agent to help filter and negotiate.

Before You Fall in Love - Ask These 10 Questions

Contacting Akiya Banks - Inquiry Templates

When you find a property on an Akiya Bank, you'll need to contact the municipal office or coordinator. Here are templates you can use:

Even a machine-translated inquiry in Japanese is more likely to get a response than English, as many local officials aren't comfortable with English.

The Application & Screening Process

Akiya Banks are not just "contact and buy." Many operate more like programs with applications and screening - especially town-run ones trying to attract committed residents.

Typical Application Package

• Intent statement: Why you want this property, your plans for it
• Move-in plan: When you'll relocate, timeline for occupancy
• Renovation plan: What you'll repair/update, rough budget
• Proof of funds: Bank statements showing you can cover costs
• Contact person in Japan: Someone who can receive mail/calls
• "Life plan" (生活計画): Some towns want to know how you'll participate in the community

Screening & Interviews

Small towns often conduct interviews - they want to assess reliability and community fit. This might be a phone call, video chat, or in-person meeting. Be prepared to explain:

• Your motivation for choosing this town specifically
• How you'll handle language barriers day-to-day
• Your work/income situation (how will you support yourself?)
• Whether you'll participate in neighborhood activities

Renovation Reality: Budget Expectations

Almost every akiya requires renovation - from basic fixes (cleaning, new paint, replacing tatami) to full structural work (roof, plumbing, electrical). Renovations commonly cost far more than the purchase price.

Some municipalities offer renovation subsidies for akiya buyers - ask the local office. These often require using local contractors and completing work within a timeframe.

Hidden Costs Beyond Renovation

Beyond standard renovation, these costs surprise many buyers:

Renovation Permits: What Triggers Approval

Understanding when you need permits can save headaches:

• Cosmetic work: Usually no permit needed (paint, flooring, tatami, fixtures)
• Structural changes: May require building approval, especially if the house is in a regulated zone
• Rebuilding: Only possible if the lot meets road-access requirements (2m frontage rule)
• Grant-funded work: Often requires using local contractors, keeping receipts, and completing within deadlines

Community Integration

Rural Japanese communities may expect participation in neighborhood associations (自治会) or community activities. This isn't optional in many villages - it's how things like trash collection, local festivals, and road maintenance work.

Professional Help: When Is It Worth It?

Given the language barriers and bureaucracy, many foreign akiya buyers use professional assistance. Here's a rough guide:

Translation Rules of Thumb

Knowing when to use AI translation vs. human help can save money and prevent costly mistakes:

April 1 & Japan's Fiscal Year

Many municipal programs align with Japan's fiscal year (April 1 - March 31). Grant programs often refresh around early spring. If you're eyeing subsidies or special programs, check deadlines early - they may open in April and fill up quickly.

Found a charming old farmhouse for a bargain price? Before you rush in, do due diligence to spot red flags that could turn that dream home into a nightmare.

1. Road Access (Rebuildability)

In Japan, a house must have legal road access (usually at least 2 meters of frontage on a public road) to be rebuilt or extensively renovated.

2. Utilities and Infrastructure

• Water: City water or private well (井戸)?
• Sewer: Mains sewer or septic tank (浄化槽)? Septic requires periodic maintenance.
• Electricity: Most places have grid power unless extremely remote
• Gas: City gas connection or propane tanks?

3. Hazard Zones

Always check if the property lies in a known hazard zone. Common risks:

• Landslide (土砂災害): Big concern for mountainside properties
• Flood plains: River proximity without levees
• Tsunami zones: Coastal properties

Local governments publish hazard maps (ハザードマップ) online. Search the city name + "hazard map" in Japanese.

4. Structural Soundness & Age

Houses built before 1981 were under older earthquake codes and might need reinforcement. Look for シロアリ (termites) mentions or visible damage in photos. A ¥2 million house likely needs work.

5. Legal Status and Titles

Watch for complicated ownership situations: multiple owners, unresolved inheritance issues, or regulated farmland (requires permission to buy). A local agent can investigate by pulling the property register.

When you've found a promising property, it's time for deep due diligence and preparing to sign. This stage is crucial - don't skip inspections and document reviews.

A. View the Property

If in Japan, schedule a visit with the agent. Seeing it in person confirms condition, surroundings, and issues not visible in photos. If overseas, consider having an agent or hired inspector visit on your behalf with video walkthrough.

B. "Important Matters Explanation" Review

Japanese law requires the agent provide an Explanation of Important Matters (重要事項説明書) document before any contract is signed.

This document typically covers:

• Zoning and land use restrictions
• Property boundaries and size
• Rights of way and set-back requirements
• Easements or liens on the property
• Hazard zone status
• Utility status
• Known defects or needed repairs
• Building's legal compliance

C. Submit an Offer (Letter of Intent)

You'll submit a Letter of Intent (買付証明書) indicating your desired price. It's non-binding and starts negotiation. Includes offered price, desired closing date, and any conditions.

D. Prepare Funds

Have your financing in order. Most foreign akiya buyers use cash (Japanese banks rarely lend on old/rural properties to non-residents). Remember you need purchase price PLUS taxes/fees. Also account for exchange rates and transfer times - moving large sums internationally can take days or weeks.

E. Sign the Purchase Contract & Pay Deposit

The sales contract (売買契約) signing usually happens in person at the real estate agency. If abroad, you can give power of attorney to your agent or a judicial scrivener to sign on your behalf.

Documents you'll need: Your passport as identification. If not in Japan, you'll need to designate a tax representative in Japan for property taxes. Your signature is acceptable on contracts (no hanko seal required if you don't have one).

Buying from Overseas (Remote Purchase Logistics)

Many foreign buyers complete purchases without being in Japan. It's absolutely doable, but requires more preparation. Here's what you need:

Power of Attorney (POA)

Your judicial scrivener or agent will provide the POA document in Japanese. You sign it, get it notarized (at a notary public, Japanese consulate/embassy, or via apostille depending on your country), and mail it to Japan. This authorizes them to sign contracts and register the property on your behalf.

Domestic Contact Person (国内連絡先)

This is someone in Japan who can receive mail, answer phone calls from officials, and relay information to you. Options include:

• Your real estate agent or scrivener (many offer this service)
• A friend or family member in Japan
• Mail forwarding services like MailMate
• A property management company

This person receives property tax bills, utility notices, and any official correspondence. It's not optional - municipalities need a domestic address.

Timeline Padding

Remote purchases take longer. Build in extra time for:

• Document preparation and notarization (1-2 weeks)
• International shipping of signed documents (1-2 weeks)
• Wire transfer processing (3-7 business days)
• Time zone differences slowing communication

The final step is closing (settlement), where you pay the remaining balance and the property title transfers to you. Usually occurs a few weeks to a couple of months after contract signing.

Final Payment

Pay the outstanding purchase price (total minus deposit). Done via bank transfer on or before closing date. If overseas, wire funds to the specified account - allow time for international transfer fees and conversion.

Also pay at closing: agent commission and judicial scrivener fee.

Title Transfer with Judicial Scrivener

A Judicial Scrivener (司法書士) handles official registration under your name at the Legal Affairs Bureau. They confirm payment received and submit the registration application. Once processed (often same day or within days), you're the recorded owner.

You'll receive a registration identification (登記識別情報) as proof of ownership - keep this safe.

Closing Meeting

Often a meeting where you, seller, agents, and scrivener gather. The seller hands over keys and documents, you hand over balance payment. If remote, your proxy attends and couriers you the keys afterward.

Taxes and Adjustments

Property tax is billed annually to whoever owns on January 1. If buying mid-year, buyer and seller typically split pro-rata. Any utility bills or community fees are also adjusted so you only pay from closing onward.

Most foreigners buying akiya use cash. Japanese banks rarely lend on very old or rural properties, and even newer homes require permanent residency or stable Japan income for a mortgage. Most foreign akiya buyers are cash buyers.

Japanese Mortgage (for Residents/PR)

If you live and work in Japan (especially with permanent residence or long-term work visa) with yen income, you may qualify for a home loan. Banks like MUFG, SMBC, or Shinsei have offered loans to foreigners with PR or Japanese spouse guarantors. Expect strict conditions and lots of Japanese paperwork.

International or Home Country Loan

Some buyers pull equity from their home country - e.g., home equity loan on your house in the US/UK, then use that cash to buy in Japan. Or use international banks operating in Japan. Interest rates may be higher.

Seller Financing / Payment Plan

Rare in Japan, but occasionally a seller or local government might allow installments. Some akiya banks offer zero-interest loans or subsidies if you commit to renovation. Read the fine print.

Buying involves more than just the sticker price. Budget for closing costs, taxes, and ongoing expenses.

One-Time Costs at Purchase

Annual Ongoing Costs

Annual Property Taxes

Fixed asset tax bills arrive every April. Pay on time via convenience stores, banks, or online banking (if you have a Japanese bank). Falling behind leads to penalties and eventually tax liens.

Maintenance & Renovation

Japan's climate (humid summers, potential typhoons, cold in north) means regular upkeep:

• Repair roof leaks
• Prevent mold (air out periodically)
• Service septic tank if applicable
• Clear vegetation (avoid pests/fire hazard)
• Winterize pipes in cold areas

Community Involvement

In rural Japan, it's customary to introduce yourself to neighbors and participate in the local community. This might involve attending meetings, paying small dues, and taking turns in activities like neighborhood clean-ups. Showing up with a smile (and perhaps a gift of snacks) goes a long way.

Residency and Visa

Owning a house does not grant residency status. Ensure you have your visa situation sorted if you plan to spend significant time in Japan. On tourist status, you can't stay more than 90 days at a time (for most countries).

If You Don't Live Full-Time

• Arrange for mail forwarding (use tax rep's address for official mail)
• Consider security measures (remote cameras, smart devices)
• Ask a neighbor to keep an eye out
• Winterize if leaving during freeze season

Pitfall: Skipping Step 1 (Location Fit)

Don't impulse-buy a cheap house in a region you know nothing about. Some foreigners saw viral articles about "$500 houses" and bought on a whim, only to realize the location was impractical. Do your homework on the area - a great deal in the wrong place is no deal at all.

Pitfall: Ignoring Deal-Breakers (Step 3)

Check road access and zoning. Many eager buyers have bought properties only to find they can't rebuild or even legally inhabit them (perhaps registered only as storage sheds). Use online maps, Google Street View, and ask questions.

Scams & Red Flags

Negotiation Tip

In Japan, offering full asking price is common if it's fair. But if a property has sat unsold for a long time (especially akiya), a lower offer might be accepted. Justify lower offers with reasons (e.g., "the roof needs repairs, so we deduct estimated cost").

Timeline Expectations

From offer to keys: anywhere from a few weeks (fast cash deal) to a few months. On average, expect around 2-3 months. Don't book contractors or movers until you have a firm closing date.

Language Barrier

You don't need to speak Japanese to buy property, but translation support is crucial. Insist on translated documents, or hire a translator for important meetings. Small cost relative to avoiding miscommunication on a huge purchase.

Want to earn income from your property? You have options, but each comes with licensing requirements. Japan's short-term rental laws are strict - you can't just list on Airbnb without proper licensing.

Two Main License Types

Which One Is Right for You?

Minpaku is right for most people buying a vacation home who want to rent it out when they're not using it. You can stay under the 180-day limit easily if you also use the property yourself.

Ryokan makes sense for pure investment properties where you want maximum rental income year-round. But it requires the property to be in the right zone, plus fire safety equipment, emergency exits, and other upgrades.

Minpaku Registration Process

1. Check if your zone allows minpaku (some areas have additional restrictions)
2. Notify neighbors (required in many municipalities)
3. Submit notification to local government (届出)
4. Receive registration number
5. Display registration number on all listings
6. Maintain guest records and submit periodic reports

Ryokan License Process

1. Confirm zoning allows hotel/ryokan use
2. Meet building code requirements (fire safety, accessibility)
3. Pass health department inspection
4. Apply for license through prefectural government
5. Ongoing compliance with hotel business law

Property Management Costs

If you're overseas, you'll need a management company. Typical fees:

• Full-service STR management: 20-30% of rental revenue
• Cleaning per turnover: ¥5,000 - ¥15,000 depending on size
• Vacant property checks: ¥5,000 - ¥20,000 per visit

English Property Search

Akiya Bank Access

Further Reading