There are properties listed for sale throughout Japan, and you may have the questions regarding your real estate purchase that you can find out some answers here.

Before going to the following FAQ, one most important thing is here.
Foreign non-resident can purchase the properties in Japan.

Please let us know if you have any further questions or enquiries from here.

You should expect something like the ones below, but there would be some more things depending on how you would like us to manage your property.

Title Registration License Tax (once)
1.5% of land price / 2% of building price valued by local government office

Commission for solicitor (Title Transfer Registration)
150,000yen (excl. consumption tax)

Contract stamp duty (once)
15,000yen to 30,000yen per contractual document

Real estate commission fee (once)
3% + 60,000yen of the price of property (excl. consumption tax)

Postal and courier charges
Approximately 5,000yen

Trust account by solicitor usage
20,000yen (excl. consumption tax)
Bank charges / commissions are not included.

Real Property Acquisition Tax (once)
3 to 4% of property valued price decided by local government office

Inn-keeper’s license (once)
80,000yen – 100,000yen
If you are planning to take any short term holiday visitor guests.

Fixed asset tax (annual)
1.7% of property valued price decided by local government office

Fire insurance (annual)
around 200,000 to 350,000yen (depending on the contents of insurance)

Public liability insurance (annual)
15,000yen to 20,000yen

It is the best to ask the real estate agent for the cost estimations of each case of buying property.

If only land, simply annual Fixed Asset Tax and its payment arrangement fee and/or tax proxy service fee. If there is a building in the property, fire insurance would be needed with the cost of fire insurance premium. If you need accountant, accountant fee must be paid as well. If the property location is the area where it snows in winter, snow clearing costs. If you would like to mow the lawn in summer, that costs.
Local property management companies usually have the list of the expected costs of the house owners running the holiday rentals, the long term lease, or only your own vacation usage.

Unfortunately, there really is no chance of acquiring the loan from the banks in Japan for the foreign non-resident / investors. Foreign buyers have to prepare their own funds to purchase the real estate in Japan.

There are taxes like Personal Income Tax, Withholding Tax, and Capital Gains Tax, as well as depreciation for years depending on the type of the building.
English speaking accountant could be introduced to you for your tax report, who you can ask the questions of taxes in Japan for your case.

Basically you can buy lands and build houses in Japan, but you must care about the land category and the zoning of the property location, if that is residential area, business area, factory area, farmer’s area, and more. The important part of this is if the land is located in the zone where you can build the house with accommodation license allowed or not for your property investment. If not, or the strict regulation area, you will have to learn a lot of things of licenses, which would take long time.

Building height restriction depends on the area category, set back from the streets around the properties etc. and also if the building is higher than 10m, how the shadow of the building moves during the daytime on lands / buildings of the next door. This would be shown by builders for each case.

The cost of making new buildings on the vacant land would be from around 440,000yen to 660,000yen / sqm, depending on the kinds and the grades of the structure and the building facilities. This includes the fixed facilities, but not furniture and electric appliances.

These average above could be lower by the effort of the construction companies, and could be even higher due to prices of construction materials and labor fees, as well as the designs by architect, and facilities needed for each local place in Japan.
e.g. If the property location is in the cold temperature place, more insulation is needed for winter season.
e.g. If the property is located in the rural area where no utility is available, you may need to dig the ground for underground water and need the well with motors etc.

This depends on each location in Japan. The services like the project management for building is available in the ski resort places like Niseko and Furano.

There are some ways for the foreigners to buy the cars in Japan, but it is sometimes a bit tricky, and depending on the nationality, slightly different sometimes. You can google “buy” “car” “Japan” “foreigner”.

Most recommended and popular license for the holiday rental property investment is “Inn-keeper’s License” (Accommodation License) in Japan, that needs some certain fire facilities and structure, which you can consult with our project management team, architects, and construction companies.

The other way to take the holiday visitors to stay at your house is “Private Lodging Permission” called Minpaku in Japanese which was effective from June 2018. The house building still needs the fire facilities as almost same as the accommodation licensed building, but this permission is rather less facility regulations than the one with the accommodation license. Still, there are some even strict regulations in each area of Japan set by local authorities and you have to make sure the details with the solicitors or the companies especially for taking care of this permission application. To learn more details about this permission, it would take time since the contents are complicated mixed with the local prefecture and authorities. The permission only allows 180 nights a year or in some areas only 60 nights a year (on Saturday night and the previous night of the national holidays etc.) which does not create enough returns usually for your property investment.

In short, as mentioned at the top in here, it is the best to choose the properties in the zone where you can have the inn-keeper’s license (accommodation license) for your profitable property investment with reasonable returns expected.

Property management after you purchase the property is very important, especially if you do not have a visa to live in Japan, and if the purpose of buying real estate in Japan is for some investment.

The necessities of contents of property management are different for each property status, and the purpose of the buyer.

It is the best to make sure if the property management service is available or not for each property case with agents/brokers.