Investing in Tokyo: Yields, Appreciation & Ownership
Who can buy, how ownership works, and the taxes and duties for buying property in Tokyo.
Who can buy in Tokyo
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 |
Japan rule, applies in Tokyo.
Stamp duty and registration in Japan
Stamp duty is levied on real estate transaction contracts in Japan, with the amount depending on the contract value. Additionally, a registration and license tax is imposed when registering property ownership.
| Property value | Stamp duty | Registration |
|---|---|---|
| Up to ¥10 million | ¥10,000 | 0.4% (ownership) / 0.1% (residential mortgage) |
| ¥10 million to ¥50 million | ¥10,000 | 0.4% (ownership) / 0.1% (residential mortgage) |
| ¥50 million to ¥100 million | ¥30,000 | 0.4% (ownership) / 0.1% (residential mortgage) |
| ¥100 million to ¥500 million | ¥60,000 | 0.4% (ownership) / 0.1% (residential mortgage) |
Japan rule, applies in Tokyo.
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 |
Japan rule, applies in Tokyo.
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 Tokyo
Yes. Same as citizen; reporting to MoF within 20 days (from Apr 2026)
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