The idea of owning a home in the Japanese countryside has a unique appeal. It’s a dream of peaceful landscapes, traditional architecture, and a chance to connect with a different way of life. For many, the dream is to buy an akiya—a vacant, often charmingly old house just waiting for a new chapter. Best of all, prices for these homes can be incredibly low, with some even given away for free.
But for many foreigners, this dream often starts with one big question…
Can Foreigners Really Buy Property in Japan?
The answer is a resounding yes. Japan is one of the few countries in Asia where foreigners can buy, sell, and own land and property with no restrictions. This is true whether you have a Japanese visa or not, and you don’t need to be a resident. You can purchase a home for personal use, as a second residence, or even to rent out. The taxes and legal processes are the same for everyone, regardless of nationality. In fact, Sumica Corporation has helped out various foreign individuals fulfill their dream of owning a home in Japan.
Now that you know the door is wide open, the real question is how to walk through it. But how do you navigate the process from start to finish? The journey to buy an akiya in Japan can feel complex, but we’ve broken it down into three clear phases to guide you every step of the way. This is your complete roadmap to turning that dream into a reality.
Your Akiya Buying Roadmap
Phase I: The Search & Decision
The first part is all about discovery—finding a house you love, getting the right help, and making some big, exciting decisions. It can seem like a lot, but when you take it step-by-step, it’s completely manageable. Let’s get into it.
Finding the Right Property for You
The search is the most exciting part of the journey. Before you can bring a home back to life, you have to find it. Thankfully, a wealth of online resources has made discovering akiya in Japan easier than ever. Success is simply a matter of knowing where to look.
Where to Look: Real Estate Websites & the 'Akiya Bank'
For most prospective buyers, the hunt begins online. Your search will centre on two key resources.
The first is Major Real Estate Portals, which are the Japanese equivalents of Zillow or Rightmove. They feature a vast number of listings with powerful filters, and while they are primarily in Japanese, modern browser translation tools are surprisingly effective. The industry leaders include dominant players like SUUMO, industry giants such as LIFULL HOME’S, and the trusted and reliable athome.
The second key resource is the Akiya Bank (空き家バンク). This is a unique and valuable tool. An “akiya bank” is not a financial institution, but a database of vacant homes managed directly by local municipal governments. Their goal is community revitalisation, meaning you can find incredibly affordable—and sometimes even free—properties that are not listed anywhere else. To find one, simply search for the name of a town or prefecture you are interested in, followed by the term “空き家バンク”. This website aggregates akiya lists from all over Japan as well.
Decoding Japanese Floor Plans
As you browse listings, you’ll need to decode the standard abbreviations on floor plans. These letters are straightforward, representing different rooms such as L for Living Room, D for Dining Room, K for Kitchen, and S for a small Service or storage room.
Where it becomes powerful is in combination. The term LDK signifies an open-plan space combining the living, dining, and kitchen areas, while DK refers to a combined dining and kitchen space. The number at the beginning simply indicates the number of separate bedrooms. Therefore, a 3LDK is a home with three bedrooms in addition to an open-plan LDK area. It’s an efficient system once you know the basics.
Contacting a Foreigner-Friendly Real Estate Agency
Once you have a list of properties you’re interested in, it’s time to get a professional involved. Trying to handle the buying process alone is extremely difficult, especially if you don’t speak fluent Japanese. You’ll need a licensed real estate agent.
The search is the most exciting part of the journey. Before you can bring a home back to life, you have to find it. Thankfully, a wealth of online resources has made discovering akiya in Japan easier than ever. Success is simply a matter of knowing where to look.
Choosing a Trustworthy Agent
Finding a real estate agent in Japan that is foreigner friendly will make everything so much easier. Look for agencies that mention they have English-speaking staff or that they’ve worked with international buyers before. A good agent is your guide, translator, and advocate all in one. It’s a good idea to chat with a few different agents to find one you click with.
This is exactly where we can help. At Sumica Corporation, we specialize in providing comprehensive support for foreigners. We’re not just agents; we’re your partners through the entire journey—from finding the perfect property and handling all the paperwork to connecting you with architects and contractors for renovation. Our goal is to make your akiya purchase as smooth and transparent as possible.
The Importance of a Property Diagnosis
Before you get your heart set on a house, your agent should help you get a property diagnosis. This is a set of reports on the home’s condition. For an older akiya, this is an absolute must. While not all checks are legally required for every sale, you should definitely ask about:
- Structural Integrity: Especially its ability to withstand earthquakes.
- Asbestos: If it was used in the construction.
- Pest Damage: Termites can be a problem in older wooden houses.
- Plumbing and Electrical Systems: Do they work, or do they need a complete replacement?
- Lead Paint: A possibility in very old homes.
- Land Survey: Are the property lines officially marked and clear?
Understanding Brokerage Fees
In Japan, the commission you pay the real estate agent is set by law. The most it can be is 3% of the property price + 60,000 yen, plus consumption tax. You usually pay this fee in two parts: half when you sign the purchase contract, and the other half at the closing when you get the keys.
Visiting the Property & Making Your Decision
This is the point where things start to feel real. Seeing a house in person is the only way to truly know if it’s the right fit for you.
In-Person vs. Remote Visits
Seeing a house in person is always the best way to know if it’s the right fit. You get a real sense of the space, the light, the neighbourhood, and the overall condition in a way that photos and videos can’t fully capture. If you can plan a trip to Japan to see your top choices, it is highly recommended.
However, for many overseas buyers, this isn’t practical. In this case, a live video tour is your next best option. This is an interactive process where an agent walks you through the house using a video call (like FaceTime or Zoom). To get the most out of it, you should ask questions as you go and request to see specific things: the condition of the ceilings for any water stains, the inside of closets and cupboards, how well the windows open and close, and even the water pressure in the sink.
Submitting Your "Intent to Purchase"
When you’ve found a house you want, you’ll make your interest official by submitting an “Intent to Purchase” document (kounyuu moushikomisho). This isn’t legally binding, but it shows the seller you’re serious. It will include:
- Your offer price.
- How you plan to pay (cash, loan, etc.).
- Your preferred dates for the contract and moving in.
- Any other special conditions you might have.
- Time on the Market: If a house has been listed for five or six months without selling, the price is probably a bit too high for what the market will bear.
- Comparable Properties: If you find a similar house in the same area that recently sold for less, that can be a solid point for your negotiation.
Essential Questions to Ask Before You Commit
Before you move forward from the offer stage, it’s crucial to have a clear picture of what you’re buying. Be sure to ask your agent specific questions to avoid surprises later on. For example, inquire about the exact property boundaries, as they may not be clearly fenced in rural areas. You should also ask if there are any known issues with the property’s history, such as major fires, floods, or other incidents; sellers in Japan have an obligation to disclose these “psychological defects” if asked. Finally, ask about the estimated annual costs, such as the fixed asset tax (Kotei Shisan Zei) and any local community fees (jichikai-hi), to get a full understanding of the long-term expenses.
Phase II: Funding & Cost Planning
Understanding and Budgeting for the Full Cost
Once you’ve found a house you love, the next big question is about the money. Figuring out the budget is a critical part of the process, as the sticker price of an akiya is often just the starting point. It’s important to have a clear picture of all associated costs before you sign any contracts.
The "8% Rule": A Breakdown of Extra Expenses
As a general rule, you can expect additional costs to be around 6-8% of the property’s purchase price. This “8% Rule” covers a checklist of necessary fees you will encounter. These include the Stamp Duty (inshi-zei) for the sales contract, a one-time Property Acquisition Tax (fudousan shutoku-zei) levied by the prefecture, and a Registration and License Tax (touroku menkyo-zei) to legally record your ownership.
Additionally, your budget must include Brokerage Fees for your agent, premiums for essential fire and earthquake insurance, and the professional fee for the judicial scrivener (shihō shoshi) who handles the registration paperwork.
Understanding Annual Property Tax
Beyond these one-time purchase costs, you’ll also have an ongoing annual tax. The property tax in Japan for foreigners is exactly the same as for Japanese citizens. This is called the Fixed Asset Tax (kotei shisan-zei), and it’s calculated based on the assessed value of your property and land. Your real estate agent can give you an estimate of the annual amount for any property you’re considering.
Securing Your Financing
Financing your akiya is one of the most important steps, and the path you take depends heavily on your residency status in Japan. Below, we’ve separated the advice for non-residents living abroad and for foreign residents living in Japan.
For Overseas Buyers: Direct Money Transfers
For buyers living outside Japan, the standard and most straightforward method of purchase is with cash, paid via an international wire transfer. This is because non-residents generally cannot open a local Japanese bank account to hold funds for a property transaction. The process is well-established, but requires careful planning.
The funds are wired from your bank in your home country directly to a secure, designated account in Japan. For your protection, this is rarely the individual seller’s account. Instead, the money is typically held in an escrow account managed by the judicial scrivener or the real estate agency handling the sale until all conditions of the contract are met. For this reason, it’s incredibly important to work with a trustworthy agency like Sumica Corporation, ensuring you receive official invoices and receipts for every payment.
Timing is absolutely critical. Your property contract will have firm deadlines for both the initial deposit, or tetsukekin (手付金), and the final balance. As international transfers can take several business days to clear, you must initiate them well in advance to avoid jeopardising the deal. It is also wise to compare the exchange rates and fees from your bank with a specialised currency transfer service, which can often save you a significant amount of money. Always keep an official receipt of your transfer as proof of payment.
For Residents in Japan: Exploring Loan Options
For foreigners living in Japan, securing a home loan (jūtaku rōn – 住宅ローン) is a possibility, but it is challenging and depends almost entirely on your residency status.
The single most important factor for most Japanese banks is whether you have Permanent Residency (永住権 – eijūken). Holding a PR visa opens the door to the same mortgage products available to Japanese citizens. Banks see it as a commitment to residing in Japan long-term, which makes you a lower-risk borrower.
If you do not have Permanent Residency, your options become more limited, but not impossible. Your chances of approval increase significantly if you are married to a Japanese national or a Permanent Resident who can act as a guarantor on the loan. Additionally, some specific financial institutions, such as Tokyo Star Bank, are known for being more flexible and offering loan products to non-PR holders who meet certain employment and income criteria.
Regardless of your visa status, any bank will carefully assess your financial stability. They will typically require you to have been in stable, full-time employment in Japan for at least two to three years, with a consistent annual income, and a clean credit history.
Loan Eligibility Requirements
Should you apply for a loan, be prepared to meet several conditions. Lenders will typically require you to be between 20 and 65 years of age with a stable, full-time job for at least two to three years. You’ll also need to show a minimum annual income, often around ¥3-5 million, and may need a certain level of Japanese language ability to understand the contract. For most Japanese banks, the single biggest factor is holding Permanent Resident status.
Phase III: Paperwork & Final Steps
Preparing the Necessary Documents
With the property chosen and financing sorted, you’re entering the final stretch. This stage is all about the legal and administrative tasks required to make the house officially yours. The specific documents you need will depend on your residency status.
Document Checklist for Residents in Japan
If you live in Japan with a valid visa (such as a work visa, spouse visa, or permanent residency), you will need to prepare the following:
- Residence Card (Zairyu Card): Your official Japanese ID card.
- Certificate of Residence (Juminhyo): An official document from your local city office that proves your address.
- Personal Seal (Inkan or Hanko): In Japan, a registered personal seal is used instead of a signature for official contracts. You can have one made easily and inexpensively.
- Seal Certificate (Inkan Shomeisho): A document from your city office that officially registers your seal, proving it belongs to you.
Document Checklist for Non-Residents
If you are buying from outside Japan, you won’t have the documents listed above. Instead, you will need to provide notarized equivalents from your home country:
- Passport: Your valid passport for identification.
- An Affidavit: This is a sworn statement, signed in the presence of a notary public in your home country. It serves as your official proof of address and identity, essentially replacing the Japanese residence certificate. Your agent or legal representative in Japan will provide the exact wording required for this document.
Registering the Property & Transfering Ownership
Signing a contract isn’t the final step; the change of ownership must be legally recorded in the official government registry. This crucial process protects your rights as the new owner.
The Transfer of Ownership Registration Process
This legal process is handled by a specialist called a judicial scrivener (shihō shoshi). Their job is to manage the entire registration by verifying all documents, confirming the final payment has been made, and submitting the official application to the Legal Affairs Bureau to transfer the property title to your name. On the closing day, you will meet with the scrivener, the seller, and your agent to sign the final papers, and once the registration is complete, the house is legally yours.
Fulfilling Your Legal Reporting Obligations
There is one important final report that all foreign buyers must make.
The 20-Day Report to the Ministry of Finance
Under Japan’s Foreign Exchange and Foreign Trade Act, any non-resident who acquires real estate in Japan must report the acquisition to the Minister of Finance (via the Bank of Japan). This must be done within 20 days of the purchase. It’s a straightforward form that your agent or judicial scrivener can easily help you complete.
Receiving the Keys & Managing Your New Property
Once the registration is complete, there are a few final items to take care of as you begin your new life as a property owner in Japan.
Receiving Your Official Title Deed
About a week or two after closing, the judicial scrivener will provide you with the official Title Deed (kenrisho or touki shibetsu jouhou). This is the legal proof that you are the owner of the property. It’s an incredibly important document, so be sure to store it in a safe place.
Appointing a Tax Administrator
If you live overseas, you are required to appoint a “tax administrator” (nozei kanrinin). This can be a friend, relative, or professional service in Japan who will be responsible for receiving your property tax bills and ensuring they are paid on your behalf.
Filing Tax Returns for Rental Income
If your plan is to rent out your akiya, the income you earn will be subject to Japanese income tax. You will need to file an annual tax return, and it is highly recommended to hire a tax accountant (zeirishi) to handle this for you.
Planning for Akiya Renovation
With the keys in hand, the next exciting chapter begins: bringing your akiya back to life. Whether it needs a few cosmetic updates or a full-scale renovation, this is your chance to shape the property into your personal vision. Navigating this stage can be a project in itself, but it is often one of the most rewarding parts of the entire experience.
Frequently Asked Questions
FAQ
Yes, the entire process—including property selection, contracts, payment, renovations, and rental management—can be handled fully online. We provide English translations and Zoom-based explanations.
We carefully select structurally sound and high-yield properties. We also propose and execute necessary renovations in advance, with a focus on properties that are likely to resell well in the future.
Annual property taxes are typically ¥30,000 to ¥80,000. If the property is vacant, you’ll only need to pay for basic utilities.
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