Property & Farmland in Japan
Who can buy, how ownership works, and the taxes and duties for buying property in Japan.
Who can buy in Japan
Japan places no restrictions on foreign property ownership. Foreigners can acquire freehold land and buildings under the same terms as Japanese citizens. From April 2026, non-residents must report purchases to the Ministry of Finance within 20 days. Agricultural/forest land requires FEFTA permit.
| Buyer | Permitted | Tenure | Conditions |
|---|---|---|---|
| Japanese Citizen / Resident | Yes | Freehold | Unrestricted |
| Foreign National (residential / commercial) | Yes | Freehold | Same as citizen; reporting to MoF within 20 days (from Apr 2026)Approval: MoF reporting post-purchase |
| Foreign National (agri / forest) | Conditional | Freehold | Agricultural or forest land restrictedApproval: FEFTA permit |
Capital gains on a sale
Capital gains from real estate sales in Japan are taxed separately. The tax rate varies significantly based on whether the property was held for five years or less (short-term) or more than five years (long-term)..
| Holding period | Classification | Tax rate | Indexation |
|---|---|---|---|
| 5 years or less | Short-term | 39.63% (30.63% national tax + 9% local inhabitant's tax) | No |
| More than 5 years | Long-term | 20.315% (15.315% national tax + 5% local inhabitant's tax) | No |
| Primary residence, over 10 years (up to ¥60M gain) | Special Reduced Rate | 14.21% (10% income tax + 4% resident tax + 0.21% reconstruction surtax) | No |
Always consult a licensed real estate attorney before purchase. Rules change; verify current law. Always confirm with a qualified tax professional. Rules change; verify with a professional before you transact.
Frequently asked questions about Japan
Yes. Same as citizen; reporting to MoF within 20 days (from Apr 2026)
Buying or selling in Japan?
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