Guide to Buy Property in Japan for Singaporeans

When purchasing, owning, or selling real estate in Japan, multiple taxes come into play. These include registration and license tax and real estate acquisition tax at the time of purchase; fixed asset tax and city planning tax during ownership; as well as income tax and capital gains tax on rental income or sales profits.

Tax rates and payment methods vary significantly depending on factors such as the property’s use, the length of ownership, whether it is owned by an individual or a corporation, and whether the owner is a resident or non-resident. For this reason, it is essential to create a financial plan that accounts not only for the initial acquisition costs, but also for the annual expenses and tax obligations upon exit.

Can Foreigners Purchase Real Estate in Japan?

In Japan, foreigners can acquire ownership of both land and buildings under the same conditions as Japanese nationals, and there are no restrictions on usage—whether for residential, commercial, or investment purposes.

However, purchasing real estate does not automatically grant a visa or permanent residency status. For long-term stays in Japan, a separate residence status is required.

As for legal restrictions, buyers must file a notification under the Foreign Exchange and Foreign Trade Act (in principle, within 20 days after acquisition). Additional permissions may be required for properties located near security-related facilities or for agricultural land. Condominium associations may also impose purchase restrictions through their management rules. That said, there are no discriminatory regulations based on nationality—Singaporean buyers are treated the same as those from other countries.

In practice, non-residents are expected to appoint a tax administrator in Japan and typically proceed with registration and settlement through a legal representative under power of attorney. Since housing loans are generally limited to permanent residents, non-residents often need to pay in cash or rely on a small number of banks that offer financing on a case-by-case basis.

The Process of Purchasing Property in Japan

1.Define Your Goals

First, clarify your goal: Are you seeking a property for investment with a focus on rental yield, a second home for yourself or your family, or with a view toward relocating to Japan in the future? While a visa is not required to purchase property in Japan, ownership does not equal long-term stay permission. Your purpose will determine the property type, location, necessary permits (for example, a license for short-term rentals), and even your exit strategy. Setting this goal early is key to a successful purchase.

2. Choose the Area and Property

Compare price ranges, rental demand, and property management structures, and narrow down your choices based on whether you prioritize yield or capital appreciation. For instance, Tokyo offers international business opportunities and liquidity; Osaka benefits from short-term rental demand linked to the Expo and IR projects; Fukuoka boasts proximity to the airport (10 minutes) and high yields; Kyoto offers scarcity value due to strict landscape regulations; and Hokkaido (Niseko) is a luxury resort destination popular with high-net-worth individuals.

3. Select a Real Estate Agency

Choose a company with extensive experience in transactions with foreign clients, preferably one that provides English-language support and comprehensive services covering property viewings, contracts, tax coordination, and property management. Use English-language property portals to compare several agencies, paying attention to fees, scope of services, and availability of interpretation support.

4. Property Viewing and Application

While visiting the property in person is ideal, VR tours or live video viewings are also possible. Required documents for the application include a passport, residence card, sworn affidavit, and signature certificate. Non-residents should factor in mailing time for notarized documents.

5. Sales Contract and Deposit Payment

Before signing, a licensed real estate agent (takken-shi) will provide an explanation of important matters in Japanese, and it is strongly recommended to have an interpreter present. The deposit typically amounts to around 5% of the purchase price. Since international wire transfers usually take three to five business days, allow sufficient time when planning your schedule.

6. Final Payment, Registration, and Handover

On the same day that the remaining balance is settled, a judicial scrivener will apply for the transfer of ownership registration, and the keys will be handed over, completing the transaction. At this stage, buyers are required to pay the registration and license tax, stamp duty, judicial scrivener fees, and real estate acquisition tax. Non-residents must also file a tax administrator appointment and report the acquisition under the Foreign Exchange and Foreign Trade Act within 20 days.

How to Choose a Real Estate Company

In Japan, it is common for a single real estate agency to handle the entire process—from sales contracts to registration, taxation, and property management. For foreign investors, the first priority should be selecting a “full-service partner” agency that can support you throughout the journey. When narrowing down candidates, comparing them across the following five criteria will help you avoid costly mistakes:

1. Multilingual support, including English contracts and interpretation services
2. A proven track record with international clients (expertise in overseas remittances, withholding tax, and mortgage screening)
3. Comprehensive support that extends beyond the purchase to include rental or short-term leasing management and the arrangement of a tax administrator
4. Transparency in clearly disclosing fees, taxes, and risks
5. A strong professional network with tax accountants, judicial scriveners, banks, and property managers

While Japanese platforms like SUUMO and LIFULL list a wide range of quality properties, many of the agencies found there may offer only limited English support. Be sure to confirm the scope of services and related costs in advance, keeping in mind the importance of property management after your purchase.

Purchase Costs and Taxes

Main Expenses in Addition to the Property Price

When buying a pre-owned condominium in Japan, buyers should expect to pay an additional 6% to 10% of the purchase price in initial costs. The breakdown of these costs typically includes:

• Registration and license tax
• Real estate acquisition tax
• Stamp duty
• Judicial scrivener’s fees
• Bank fees and foreign exchange spreads for overseas remittances
• Mortgage guarantee fees and fire/earthquake insurance premiums

The registration and license tax varies depending on the type of registration: ownership transfer (land and building) is generally 2%, though preferential rates apply (0.3% for residential buildings and 1.5% for land). Setting up a mortgage registration incurs a 0.4% tax.

Real estate acquisition tax is typically 3% to 4% of the assessed value (3% if residential use reduction applies). A payment notice is sent around three to six months after acquisition.

Stamp duty, payable by affixing a revenue stamp to the sales contract, ranges from 5,000 yen to 300,000 yen depending on the contract value (reduced rates may apply).

Judicial scrivener’s fees for registration range from about 10,000 yen to 200,000 yen. In addition, consumption tax of 10% is levied on the building price, service fees, and professional fees.

If you are using a mortgage, additional costs include guarantee fees and fire/earthquake insurance premiums. For overseas remittances, you should also account for receiving fees charged by Japanese banks as well as foreign exchange spreads.

Check our artcile about Taxes on Real Estate in Japan

Be Aware of Ongoing Costs (Condo Management Fees and Repair Reserve Fund)

For condominiums, management fees cover expenses such as cleaning, electricity, and inspections of shared facilities, while the repair reserve fund is accumulated to prepare for future large-scale renovations.

For a city apartment of around 60㎡, combined monthly management fees and reserve fund contributions typically exceed 20,000 yen. However, due to rising labor and material costs, fees often increase by 30% to 40% every ten years, and in the case of new developments, scheduled step-up increases are common.

In addition, an annual fixed asset tax of 1.4% applies, and if the property is located within an urbanized area, a city planning tax of 0% to 0.3% is also levied. These taxes are payable even during vacancy periods.

Overseas owners generally delegate the payment of taxes, utilities, and communication with the condominium management association to a local property management company. Since management fees can directly affect rental yields, it is important to review contract details in advance.

Potential shortfalls in the repair reserve fund or poor management practices can undermine property value. Therefore, it is essential to assess the long-term cost outlook and the soundness of the management system before making a purchase decision.

Advice for Singaporean Buyers

Japan imposes no ownership restrictions based on nationality, and both land and buildings can be acquired on a freehold basis. There are also no principal restrictions on usage, meaning buyers enjoy the same rights whether for residential, commercial, or investment purposes. This represents a significant institutional advantage.

In Tokyo, neighborhoods such as Roppongi, Hiroo, Azabu, and Daikanyama offer excellent access to international schools (ASIJ, BST, CIS) as well as English-speaking healthcare and lifestyle services. Other major cities including Osaka, Yokohama, Kobe, Kyoto, Fukuoka, Sapporo, Okinawa, and Nagoya also host international schools and English-speaking hospitals, making them suitable for multi-base living or vacation homes. When selecting a property, it is advisable to evaluate children’s educational options and transportation networks (airports and Shinkansen), and to experience local living firsthand to confirm daily convenience.

Plan Ahead from Acquisition to Exit and Inheritance

Japan’s real estate market is remarkably open to foreign buyers, and with the tailwinds of a weak yen, low interest rates, and ongoing infrastructure development, it can serve as a stable long-term asset. That said, property ownership does not grant residency or work visas, and financing options for non-residents are limited to certain banks, making funding a potential hurdle.

For Singaporean investors, the most reliable strategy is to work early on with a real estate agency, tax accountant, and administrative lawyer who can provide seamless support across taxation, legal matters, and property management. By building a comprehensive plan that anticipates the entire investment lifecycle—from acquisition through to exit and inheritance—you will be best positioned for success.