Can Foreigners Buy Real Estate in Japan Without a Visa?

Can Foreigners buy real estate in Japan without a visa?

In Japan, there are no special rules or visa requirements for foreigners to buy or hold land or buildings. There is also no time limit on ownership, and they can freely buy, sell, gift, and inherit. Taxes apply in the same way as for Japanese nationals.

However, please note that simply buying real estate does not necessarily entitle you to a visa or permanent residence. Separate procedures are required to obtain a visa or permanent residence.

What is the process for foreigners to acquire real estate in Japan?

The process for foreigners to acquire a real estate property is basically the same as that of Japanese.

Search for a property

There are several ways for foreigners to find real estate in Japan.

-Ask your friends or relatives in Japan to help you find a property.

-Searching for properties on the Internet from abroad

-Directly ask a real estate company for help.

While now it would be easy to search for properties on the Internet, real estate agencies may also handle properties that are not listed on the Internet, so it may be a good idea to contact them directly.

(In case of purchase decision) Submit a Purchase Certificate

Here, a Purchase Certificate is a written statement, typically to a real estate company but can also be the owner, stating the intention to buy the real estate property. In most cases, it also lists the desired purchasing price and confirms various details of the property and of the purchasing itself.

Confirmation of purchase funds

Once the purchase is decided, you need to confirm your purchase funds.

While a Japanese buyer can apply for a loan, either directly at a bank or through a real estate company; in the case of a foreigner without a visa, it is pretty much out of the question and will most likely be required to pay in full amount, as most financial agencies will only lend to foreigners who is a permanent resident.

◇Deposit

Once the payment procedure has been completed and the mortgage loan has been approved, the next step is to sign a sales contract. At this time, a portion of the real estate price must be paid as a deposit.

Even if you do not have a down payment and plan to pay the entire amount with a mortgage, the deposit must usually be paid in cash. The amount of the deposit is basically free, but there may be standards or requests by the real estate agent or seller, so confirmation is required.

◇Brokerage commission and stamp fee

In addition, a real estate agent must be paid a portion of the agency fee and the cost of the stamps required for the contract must also be prepared.

In general, a portion of the brokerage fee is paid at the time of contract, and the remainder is paid at the time of delivery of the property. In addition, the stamp fee varies depending on the purchase price, so confirmation is required.

After purchasing the property, registration is required, and various fees such as a request fee for a judicial scrivener, mortgage guarantee fee, and fire insurance will also be charged. The total of these fees generally amounts to approximately 10% of the real estate purchase price.

Receive the Explanation of Important Matters

The Explanation of Important Matters is a document required by law provided by the real estate company before the contract is formally signed. It describes the payment method of sales expenses, rights to real estate, legal restrictions, etc., and what will happen if the contract is canceled, so be sure to check the contents carefully.

[Necessary documents]

• Officially registered seal
  • ※Certificate of Seal Impression　
  • ※Documents that can confirm the applicant’s address.
• If you do not have an address in Japan, please submit a certificate of signature or affidavit instead.
• Passport

Normally a registered seal is required to sign the contract, but for foreigners without a visa, an affidavit at a Japanese Embassy/Consulate General in their home country would also be sufficient. In their cases, a power of attorney, the identification of the agent, and a translated official document proofing their address in their home country are also required.

Registration of ownership

Once the contract is signed and the payment is made, the new ownership needs to be registered at the municipal (Legal Affairs Bureau).

When the real estate registration is completed, a “Notice of Information for Registration Identification” will be issued to the owner.

Delivery of real estate property

Once the contract is completed and payment is made, the real estate is handed over and residence can be taken.

At the handover of the real estate, the ownership of the property must also be registered for transfer at the Legal Affairs Bureau. This procedure is usually carried out by a judicial scrivener.

When a foreigner, who does not live in Japan, acquires real estate property in Japan, with some exceptions, he/she is required to declare to the Minister of Finance via a Japanese Bank within 20 days of the acquisition.

Important things of notes

Payment method when purchasing real estate

Payment can be made either in international remittance (wire transfer) or check.

Due to the large amount of money involved, in most cases, only a deposit check can be used. However, processing a deposit check can take a long time.

We recommend using international remittance to ensure the smooth fulfillment of the contract.

Report to the Minister of Finance

The Foreign Exchange and Foreign Trade Law states that if a foreigner acquires real estate property in Japan, they need to declare to the Minister of Finance via a Japanese Bank within 20 days. However, if the foreigner is in one of the following conditions, then the declaration would not be necessary:

• Already living in Japan
• The real estate is used as a place to live for relatives or employees
• The real estate is not for residential use and is purchased from a foreigner not living in Japan
• The real estate is used as an office
• The real estate is brought for non-profit purposes

Methods of Paying Related Taxes

Foreigners have the same duty of taxes as Japanese when they purchase real estate property.

However, as foreigners who do not live in Japan cannot directly pay taxes from overseas, they need to hire or ask someone in Japan to be their tax manager. The tax manager will then receive tax payment letters and make payments either at a bank, a post office, or a convenience store. There is no special prerequisite for a tax manager and some people ask their lawyer or accountant to do that.

For more detailed information, please refer to our previous blog.

Summary

This time we explained whether a foreigner without a visa can buy real estate property in Japan. The answer is yes, but not having a visa in most cases means not being able to visit Japan. Acquiring real estate property while being outside of the country can be done, but involves numerous official processes, so it is better, and in most cases necessary, to ask professionals to act on your behalf.

Our in-group administrative scrivener and judicial scrivener offices can provide services related to real estate acquisition, as well as translation and dealing with foreign official documents. We can also work with affiliated real estate companies and tax accountants. If you are considering buying real estate property in Japan but not planning to come to Japan, please feel free to contact us for consulting!

Related Blogs

We are Yanagi group, which have offices in Osaka (Abeno and Tennoji), and our affiliated offices in Tokyo (Shibuya and Ebisu) are also available for an on-site consultation. We have handled many applications for permanent residence permits, naturalization permits, work visas, college student visas, management visas, etc., as well as visa renewal procedures related to the status of residence with the Immigration Bureau (Immigration Bureau) as a one-stop service. Our experienced administrative scriveners are also available to help you with any problems you may have.

We also have staff members who can speak each of the native languages and can assist you in obtaining a visa.

※If you wish to be consulted in Nepali or Bengali, please inform us in advance via our website or social media, and the translator will contact you ahead of time.

Please feel free to contact us if you have any questions about your status of residence or visa, even if they are trivial.

Toll-free number: 0120-138-552

For English speakers: 080-9346-2991

For Chinese speakers: 090-8456-6196

For Korean speakers: 090-8448-2133

For Vietnamese speakers: 080-5510-2593