Can Foreigners Buy Property in Japan? The 2026 Rules: Nationality at Registration, FX Reporting and the Security Land Bill

In one sentence: yes, you can buy, but 2026 added several filings

Foreign nationals can buy land and buildings in Japan and hold the same ownership rights as Japanese citizens. There is no nationality, visa or residency test. This is law, not industry custom. The Foreign Nationals Land Act recognises in principle that foreign individuals and companies may acquire land ownership, allowing restrictions by cabinet order only on grounds of reciprocity or national defence, and the order under Article 1 has never been issued^[1]. The Civil Code likewise provides that foreign nationals enjoy private rights except where prohibited by statute or treaty^[1].

That said, this year has brought a lot of change. Nationality must now be declared at registration, the foreign-exchange reporting duty for overseas residents has widened, brokerage fees have become subject to consumption tax, and a bill introducing a permit system for security-sensitive land is before the Diet. Here is what buyers meet, in the order they meet it.

Registration: nationality must be declared from 5 October 2026

From 5 October 2026, an individual who applies for a registration such as preservation or transfer of ownership and becomes the registered owner must declare their "nationality etc." as part of the "search information" filing^[6]. Japanese nationals must declare too; this is not a foreigners-only rule. A foreign buyer attaches a copy of a residence certificate showing nationality, or a copy of a passport, residence card or special permanent resident certificate^[6]. The Ministry of Justice explains that the information will serve as the basis for determining the governing law when an inheritance occurs^[6].

The second item is the "domestic contact" rule in force since 1 April 2024. When an individual or company with an overseas address becomes the registered owner, a contact in Japan, such as a real estate company or judicial scrivener, must be entered in the registration. If no contact can be found, the applicant may state that fact, but must file a separate statement^[7]. Foreign nationals with a resident record in Japan are not affected.

Buyers living abroad: FX reporting, tax agent and consumption tax

Post-acquisition report under the Foreign Exchange Act. A non-resident who acquires Japanese real estate or a related right must file a report with the Minister of Finance via the Bank of Japan within 20 days of acquisition. The buyer or a domestic agent such as a broker may file it^[8]. A ministerial ordinance amendment effective 1 April 2026 added acquisitions for own residence, non-profit business or office use, and acquisitions from another non-resident, to the reporting scope^[9]. In other words, buying a home to live in now also has to be reported.

Tax agent. A non-resident who needs to file a tax return, receive documents from the tax office, pay tax or receive a refund must appoint a tax agent and submit a notification to the tax office. The agent may be an individual or a corporation^[12]. You will need one for fixed asset tax during ownership and for declaring rental income.

Consumption tax on brokerage fees. Until now, agency and brokerage services for the sale or lease of Japanese real estate provided to non-residents were treated as export-exempt and carried no consumption tax. The fiscal 2026 tax reform removed them from the exemption, so services performed on or after 1 October 2026 are taxed at the standard rate. Only contracts signed by 31 March 2026 keep the old treatment^[10]. The standard consumption tax rate is 10%^[11]. Overseas buyers estimating closing costs should count the brokerage fee tax-inclusive.

Security angle: how the Important Land Survey Act works today

The Important Land Survey Act, enacted in June 2021 and fully in force since 20 September 2022, designates areas within roughly 1,000 metres of important facilities such as defence installations, plus remote border islands, as "monitored areas". The state surveys land use there and can issue recommendations and orders against acts that impede a facility's function. Areas around especially important facilities are designated "special monitored areas", where transactions above a certain size require prior notification^[2].

Three points matter for buyers. In a special monitored area, for land or buildings of 200 square metres or more (buildings measured as the total floor area of all storeys), both seller and buyer must notify the Prime Minister before signing. Ordinary monitored areas require no notification. Signing without notifying, failing to notify within two weeks of the contract, or filing a false notification can be punished by up to six months' imprisonment or a fine of up to 1 million yen^[5]. This is a notification system, not an approval system, and nationality does not decide whether you may buy.

Cabinet Secretariat data show that in fiscal 2024, across 583 monitored areas, 113,827 land parcels and buildings were acquired through registered sales and similar transactions. Of these, 3,498, or 3.1%, were acquired by foreign nationals or foreign-affiliated companies, and 20.4% of that group had an overseas address^[1].

The bill under review: a permit system for certain areas

The government set up the Expert Panel on Rules for Land Acquisition by Foreign Nationals in March 2026, and its fifth meeting on 2 October produced a set of recommendations^[3]. The panel recommends amending the Important Land Survey Act to introduce prior permits for acquiring land within roughly 1,000 metres of important facilities especially vulnerable to drone attack and on uninhabited border islands. Because even a small plot can serve as a drone launch site, the permit system should have no minimum area. The rule should not be limited to foreigners: Japanese individuals and companies under the effective control of a foreign government would also be covered, while acquisition by inheritance would fall outside the permit requirement^[2].

According to Kyodo News, the Cabinet approved the amendment bill on 23 October and submitted it to the Diet. It would designate "regulated areas" where acquiring land requires prior state permission, would in principle refuse permits to persons connected with foreign governments or militaries and to companies they effectively control, would treat unpermitted transactions as void and refuse their registration, and would punish violations with up to three years' imprisonment or a fine of up to 3 million yen^[4].

It bears repeating that this is a security measure aimed at specific areas and specific parties, not a general restriction on foreigners buying homes. The bill is still under deliberation, and the actual areas will be published by the Cabinet Office once designated. Before signing, you can ask your agent to check whether a property falls inside one.

The condominium market: the government looks at data, not nationality

On the claim that foreigners are pushing up condominium prices, the panel cites a survey by the Ministry of Land, Infrastructure, Transport and Tourism. Among new condominiums first registered in 2024, short-term resales within one year accounted for 6.6% in the Tokyo area and 4.8% in the Osaka area. Among new condominiums first registered in 2025, acquisitions by persons with an overseas address were 1.6% in the Tokyo area and 2.6% in the Osaka area. Acquisitions by persons presumed foreign from their names reached 11.9% in Tokyo's six central wards^[2]. The panel also notes that no correlation has been found between overseas-resident purchases and short-term resales, and that speculative trading should be curbed regardless of nationality^[2].

The government's approach is to first establish the facts through nationality declarations at registration, while watching the self-regulatory measures the Real Estate Companies Association of Japan began in November 2025, such as caps on the number of units a buyer may purchase^[2]. In short, there is currently no restriction or surcharge on foreigners buying condominiums, unlike the regimes in Canada or Singapore^[1].

Summary

There is no eligibility threshold for foreigners buying property in Japan, and ownership is identical to that of Japanese citizens. This year's changes are mainly three kinds of filing: nationality at registration, the foreign-exchange report and tax agent for overseas residents, and consumption tax on brokerage fees for non-residents. The security-related notification and the permit system under review concern only specific zones around important facilities. Sort out your residency status (living in Japan or abroad), the property's location and the costs before you buy, and there will be no surprises. If you would like to confirm the procedures and costs for a specific listing, please get in touch.