1. Will not speaking Japanese cause difficulties when buying property in Japan?
No. Our staff have more than ten years of real estate experience in Japan and speak fluent Mandarin. They explain the process and accompany you on viewings. A Chinese-speaking specialist also provides simultaneous interpretation when the contract is signed, helping you understand its contents and feel at ease.
2. What is the general process for buying property?
①Financial planning: A comprehensive funding plan helps avoid problems such as insufficient purchase funds or difficulty raising money. Detailed planning is important. In addition to the sale price, the costs listed below arise when buying property. They vary by property and generally amount to 8–10% of its price. ②Gathering information: We recommend quality properties based on the client’s purchasing requirements. ③On-site inspection: We accompany clients on property inspections. If they cannot visit Japan, we provide a comprehensive introduction through video and written information. ④Property sale and purchase agreement: After the explanation of important matters, the seller, buyer and broker sign and seal the property sale and purchase agreement. ⑤Completion and transfer: Once all matters have been agreed, a completion date is arranged. The buyer pays the full sale price and the seller hands over the property.
3. What types of real estate are there in Japan?
1. Land 2. Detached houses 3. Condominium apartments 4. Offices 5. Shops 6. Entire ordinary apartment buildings (wooden construction) 7. Entire condominium buildings (steel, reinforced concrete or steel-reinforced concrete construction) 8. Entire buildings (steel, reinforced concrete or steel-reinforced concrete construction) 9. Hotels 10. Factories and warehouses 11. Car parks
4. Are there legal restrictions on foreigners buying property in Japan?
Japanese regulations impose no special restrictions. Following an amendment in April 1998, restrictions on property ownership by non-Japanese nationals were removed. Taxes are the same as for Japanese purchasers. Much land in Japan is held in freehold ownership; property owned by a foreign national can also be inherited by another foreign national.
5. Can I open a Japanese bank account to receive rent?
To prevent money laundering and other unlawful activities, Japanese banks generally do not open accounts for foreigners who do not have residence status in Japan. They normally open accounts only for foreign residents with status such as student, work, spouse or permanent resident status who can present an alien registration certificate or resident card.
6. What payment methods are available besides bank transfer? Must payment be in yen?
Usually only bank transfer and cash are accepted. Payments must be in Japanese yen.
7. How are exclusive-use areas and building floor areas calculated in Japan?
The exclusive-use or building floor area of a unit in a Japanese multi-unit building excludes communal corridors and entrance areas. Exclusive-use area is measured from the centre of the walls; differences are generally within about 10%. Balcony area is excluded.
8. Can you show me inside a property that has a tenant?
No. Tenants generally do not allow strangers into their homes for viewings, as this would intrude on their privacy. Tenanted properties must therefore be viewed from outside. Vacant properties can be viewed with keys when circumstances permit.
9. How can I collect rent and manage a property while outside Japan?
In addition to property transactions, we offer professional management services including finding tenants, collecting and remitting rent, resolving rental disputes, handling move-out procedures, cleaning and renovation, helping clients receive regular income while overseas.
10. What happens if an unexpected event occurs during the transaction, such as earthquake damage to the building?
Before handover, while settlement and registration are incomplete, ownership has not yet passed to the buyer. We also have transaction safeguards, such as a system guaranteeing a full refund of the deposit. Japan’s existing laws and systems allow property transactions to proceed with peace of mind.
11. Will Japanese property prices rise after the Olympics? Can buying a home provide a visa or permanent residence?
Some countries grant permanent residence to foreigners who purchase property above a certain value, but Japan currently has no such condition. An investment/business visa may be applied for, but the requirements are high and obtaining a visa is not straightforward. Taiwanese travellers have 90-day visa-free access for tourism, making visits to Japan convenient: they can purchase a ticket and fly directly to major Japanese cities.
12. Can foreigners obtain loans to buy homes?
In principle, Japanese banks lend to people who hold long-term residence status in Japan and pay taxes regularly. Screening standards differ between banks, so consult the relevant bank officer. Taiwanese buyers may arrange investment property mortgages with Taiwanese banks operating in Japan.
13. Does buying Japanese property give free access to Japanese schools and education?
Some countries grant permanent residence to foreigners who purchase property, but Japan currently has no such condition. Although investment/business visas may be applied for, the requirements are high and visas are not easily obtained. Access to Japan’s education system requires long-term residence status or arrangements to study in Japan.
14. Japan has many earthquakes. What should I do if an earthquake damages my home?
Many areas suffered damage in March 2011; much of that damage was attributed to the tsunami rather than the earthquake itself. Because Japan is earthquake-prone, buildings are designed to meet seismic resistance requirements. Past disasters have led to changes in seismic requirements and the Building Standards Act, while building technology continues to develop at a high international level. Where a property has fire insurance, the relevant insurer handles claims; claim procedures vary by insurer.
15. Are annual taxes payable on property in Japan? How much are they?
Under Japanese law, owners of property in Japan must pay fixed asset tax each year.
16. What costs are payable when buying property in Japan?
Brokerage fees, registration charges, stamp duty, bank loan handling fees, transaction tax (one-off), land and building taxes (calculated daily in the first year), insurance costs (fire and earthquake insurance), and scrivener fees.
17. What documents and funds should I prepare to buy property in Japan?
1. Personal seal 2. Identification 4. Notarial certificate 3. Deposit (10% of the property price) 4. 50% of the brokerage fee.
18. How are brokerage fees calculated for a property purchase in Japan?
The fee payable to the broker when a transaction contract is concluded is: {(transaction amount including tax × 3%) + JPY 60,000} + consumption tax.
19. What are the approximate total additional costs when buying property in Japan?
In addition to the full property price, taxes and other costs must be paid. These amount to approximately 5–6% of the property price for a cash purchase.
20. What are the detailed costs associated with buying a home?
[Stamp duty] Revenue stamps attached to the purchase agreement.[One-off payment]
[Property registration costs] Fees for registering the change of ownership at transfer.[One-off payment]
[Insurance premiums] Fire insurance costs; the purchaser decides whether to take out coverage. [Fixed asset tax] Collected by the government; the annual amount follows the prescribed fixed asset tax assessment.[Annual payment, around mid-May]
[Real estate acquisition tax] 3% of the assessed fixed asset value.[One-off payment]
[Brokerage fee] The service fee prescribed by the government: {(transaction amount including tax × 3%) + JPY 60,000} + consumption tax.[One-off payment]
[Other costs] For a tenanted property, deposits attached to the tenancy agreement, rent and a share of fixed asset tax must also be paid or received, calculated on a daily basis.
21. Which banks offer financing to non-residents?
There are branches of five Taiwanese banks in Japan, in Tokyo or Osaka: First Bank, Bank of Taiwan, CTBC Bank, Chang Hwa Bank and Mega Bank. They provide lending services.
22. How do property floor areas differ between Japan and Taiwan?
In Taiwan, the area of an apartment sold by unit includes shared areas such as corridors; in Japan, shared areas are excluded. Around 70 m² is a typical apartment area for a family in central Japanese cities. In addition to square metres, the unit “tsubo” is often used. To convert square metres to tsubo, multiply by 0.3025. Example: 100 m² × 0.3025 = 30.25 tsubo.
After submitting a purchase application
1. What are the various cost items payable when buying property?
■ Consumption tax on buildings Consumption tax is paid on transfers and leases of assets and the provision of services carried out for business remuneration in Japan, and on imports of foreign goods. In a real estate transaction, only the building is taxed; the land is not. Tax amount = building transaction price × 8%
■ Stamp duty Tax payable on contracts, invoices and similar documents. For a real estate sale agreement, the tax ranges from JPY 200 to JPY 480,000 according to the amount stated in the agreement. Example: a sale agreement stating JPY 100 million incurs JPY 30,000 in tax.
■ Registration and licence tax Tax payable on registration of real estate, mortgages and similar rights. Tax amount = taxable base × tax rate Example: tax on registration of an ownership transfer resulting from a sale. Housing: taxable base (assessed fixed asset value) × 2% Land: taxable base (assessed fixed asset value) × 1.5% The taxable base is the assessed value entered in the fixed asset tax ledger, rather than the actual transaction price. Local authorities revise this assessed value every three years.
■ Registration fees Real estate registration is generally entrusted to a professional judicial scrivener. The fee paid to the judicial scrivener varies.
■ Consumption tax on buildings Consumption tax is paid on transfers and leases of assets and the provision of services carried out for business remuneration in Japan, and on imports of foreign goods. In property transactions, only the building is taxed; the land is not. Tax amount = building transaction price × 8%
■ Fixed asset tax and city planning tax These taxes are imposed each year on the owners of fixed assets (land, buildings and depreciable assets) as of January 1. Even if ownership changes after January 2, the taxpayer does not change. The sale agreement therefore generally allocates the ownership period between seller and buyer. Tax amounts: Fixed asset tax = taxable base × 1.4% (standard rate) City planning tax = taxable base × 0.3% (maximum rate)
■ Real estate acquisition tax Tax payable by individuals and companies acquiring property, with or without payment, through purchase, exchange, gift or construction. Tax amounts: Residential land tax = (assessed fixed asset value × 1/2) × 3%, subject to special provisions. Tax amount = assessed fixed asset value × 4%, subject to special provisions.
■ Loan costs Loan administration charges, loan guarantee fees and related costs. Costs vary by financial institution.
■ Insurance premiums Costs vary by financial institution.
■ Brokerage fees Fees paid to the broker when the contract is signed.
After purchasing property
1. What management is needed after buying property?
After purchase, various tasks arise, including physical upkeep and management of the building, finding and negotiating with tenants, acting as an agent in rental matters, billing and collecting rent and communal service charges, and dealing with faults. We can support these activities, so you may entrust them to us with confidence.
2. How are taxes paid?
Income-producing property in Japan is subject to fixed asset tax, city planning tax and other taxes. Further details on taxes are referenced here. If you live outside Japan and find payment difficult, a Japanese tax professional can act as your tax agent. We have an established system for tax payment services in cooperation with external tax professionals.
3. How can I collect rent and manage a property while outside Japan?
In addition to property transactions, we offer professional management services including finding tenants, collecting and remitting rent, resolving rental disputes, handling move-out procedures, cleaning and renovation, helping clients receive regular income while overseas.
4. How is the management service fee charged?
For our rental management service, we charge 5% of the monthly rent as an administration fee.
