Why invest in Nagano: the mountain and onsen prefecture
Nagano (長野県) is the prefecture of the Japan Alps: 3,000 m peaks, renowned ski resorts, and one of the country's highest concentrations of onsen (温泉, hot springs). Host of the 1998 Winter Olympics, it lives on four-season tourism: skiing in winter, hiking and cool air in summer, maple leaves in autumn.
Three strengths make it a market apart:
- Proximity to Tokyo: Karuizawa is about 1 hour from Tokyo on the Hokuriku Shinkansen; Nagano city about 1h20. It is the capital's weekend.
- Record national tourism (42.7M visitors in 2025) a share of whom come specifically for snow, onsen and nature.
- Low entry tickets: outside Karuizawa and the resorts, you find akiya (vacant houses) and kominka at prices unrelated to Tokyo.
As everywhere in Japan, you buy freehold for life: the building AND the land, with no expiring lease. A decisive point for buyers from leasehold markets. Start by browsing our hand-picked properties and our buying guide to frame your project.
Nagano's five markets: from Karuizawa to the rural kominka
"Nagano" covers very different realities. There are five markets, from most premium to most affordable:
| Market | Profile | Indicative entry ticket | Typical use |
|---|---|---|---|
| Karuizawa | Upscale resort town, villas, forest | high (¥30-100M+ / €200k-670k+) | second home, premium rental |
| Ski resorts (Hakuba, Nozawa) | Foreign-driven market, ski ADR | mid to high | seasonal short-term rental |
| Onsen towns (Bessho, Yudanaka, Shibu) | Inns, minshuku, hot springs | mid (inn: ¥15-60M) | ryokan / minshuku, STR |
| Cities (Nagano, Matsumoto) | Classic residential, universities | lower-mid | long-term rental, mansion |
| Countryside (satoyama, inaka) | Kominka, rural akiya, farming | very low (¥1-12M) | home, guesthouse, life project |
Karuizawa (軽井沢) is Japan's Hamptons: villas under the larches, boutiques, very strong second-home demand, the prefecture's priciest market. At the other end, the countryside (inaka) offers five-figure-euro kominka. For pure skiing, see our dedicated piece on ski-resort real estate (Niseko, Hakuba): Hakuba is in Nagano but follows a separate international-resort logic.
Onsen and inns: the heart of investing in Nagano
Nagano is THE prefecture for investing in thermal lodging. Onsen towns, Bessho (別所温泉), Yudanaka-Shibu (湯田中渋温泉) near the famous Jigokudani snow monkeys, Nozawa Onsen (野沢温泉), concentrate traditional inns and minshuku to take over.
Three operating formats
- Existing ryokan / minshuku: taking over a running inn with its hotel licence (ryokan gyō-hō, ryokan gyō-hō, 365-day operation). See also our guide to taking over a ryokan.
- Kominka turned guesthouse: an old house converted to lodging, under a ryokan gyō licence (kan-i shukusho, kan'i shukusho, simple lodging) or as minpaku (minpaku, 180 nights/year).
- Classic short-term rental: a house or flat rented as minpaku, capped at 180 nights/year unless it holds a hotel licence.
The key point: hot-spring water rights
A hallmark of Nagano: a property "with onsen" is not always sold with the right to draw the hot water. Distinguish onsen-ken (温泉権, right over the source) from inyu-ken (引湯権, right to pipe water to your property). These rights:
- may be attached to the property or held separately by an onsen association;
- often carry a monthly fee to the thermal association (yu-dai);
- may be limited in flow and not freely transferable.
Always check, via the important-matters explanation (jūyō jikō setsumei) and the property register (tōki-bo), whether the hot water is included, at what flow and annual cost. A ryokan without guaranteed water rights loses most of its value.
Mountain kominka: buying and renovating in Nagano
Nagano is full of kominka (kominka, old wooden farmhouses and homes), often with a massive frame and a large roof built for snow. Many are listed via the prefecture's and towns' akiya bank.
What drives value (and risk)
- Location first: the real criterion is access. A kominka ≤ 20-30 min from a station and shops rents and resells; isolated deep in a valley, it stays a life project, not an investment.
- Snow and insulation: Nagano's winters are harsh. Budget for snow clearing, a sound frame and above all insulation work (dannetsu), often absent in old buildings.
- Seismic standard: a pre-1981 building falls under the kyū-taishin (old seismic standard) and may need reinforcement.
- Termites and damp: check for termites (shiroari) before any offer.
Renovating a kominka commonly runs ¥5-20M (≈ €33k-133k) depending on roof, structure and bathrooms: break it down line by line with our article on the cost of renovating a kominka.
Worked example: an onsen kominka as a guesthouse
Take a realistic scenario: indicative figures to validate property by property.
The deal
- Purchase: a 120 m² kominka in a Nagano onsen town, 15 min walk from a station: ¥8M (≈ €53,000).
- Purchase costs (≤ 6%): about ¥0.48M (≈ €3,200), transfer tax, agency fee, shihō shoshi (registration lawyer), tax.
- Renovation + lodging compliance: ¥12M (≈ €80,000), insulation, bathrooms, fire safety for the licence.
- Total cost: ≈ ¥20.5M (≈ €136,000), cash purchase.
Operation (short-term rental, simple-lodging licence)
| Item | Prudent assumption | Annual amount |
|---|---|---|
| Average nightly rate (ADR) | ¥18,000 | |
| Occupancy | 45% | ≈ 164 nights |
| Gross revenue | ≈ ¥2.95M (≈ €19,700) | |
| Costs (cleaning, OTA, energy, management, taxes) | ≈ 45% | ≈ ¥1.33M |
| Net income before tax | ≈ ¥1.62M (≈ €10,800) |
That is a net yield of about 7.9% on total cost (1.62 / 20.5). In the ski + onsen high season, ADR and occupancy can climb; in the shoulder season they fall. Test your own assumptions (price, ADR, occupancy, costs) in our yield simulator, and compare cities in our Airbnb yield-by-city analysis.
Prices and yield by zone: the panorama
An indicative overview of zone dynamics: real prices are checked on the official MLIT reinfolib portal and property by property.
| Zone | Price dynamic | Potential STR yield | Seasonality |
|---|---|---|---|
| Karuizawa | Firm, resort demand | moderate (pricey assets) | strong summer, quiet winter |
| Ski resorts (Hakuba…) | Foreign-supported | high at winter peak | very marked (snow) |
| Onsen towns | Stable, station-dependent | good if well located | dual peak (ski + autumn) |
| Nagano / Matsumoto | Stable residential | moderate, long-term | low |
| Countryside (inaka) | Low, depopulation | variable, project-dependent | strong |
The core message: in Nagano, location drives everything. A well-served onsen beats an isolated villa. And keep the national logic in mind: the building depreciates, the land carries the value.
Tax, costs and financing: the fundamentals
The immoJapon rules hold in the mountains too:
- Purchase costs ≤ 6% of the price: see the cost and tax breakdown.
- Cash purchase for a non-resident: the Japanese mortgage is reserved for people both resident AND salaried in Japan.
- Annual property tax: kotei shisan-zei (kotei shisan-zei, ~1.4%) + toshi keikaku-zei (toshi keikaku-zei) where applicable, see the property tax.
- Rental income: a non-resident is taxed in Japan; plan for the rental-income taxation (non-resident) and the tax return (kakutei shinkoku).
- Buying grants no visa: a property in Nagano creates no residence right (see buying without a visa).
Common mistakes to avoid
- Buying a "property with onsen" without checking the water rights: the No. 1 point in Nagano. No guaranteed right = no value.
- Underestimating snow: snow clearing, roof, insulation and natural risks (avalanche, landslide) are checked on hazard maps.
- Overrating yield on high season alone: build on a full year.
- Confusing regimes: minpaku (180 nights) vs hotel licence, running an inn requires the right licence.
- Choosing isolation: a kominka far from any station is a life project, not an investment.
- Forgetting currency: use the weak-yen window, but reason the asset in yen.
In short: Nagano, freehold mountains within reach of Tokyo
Investing in Nagano means choosing a mountain and onsen market, backed by record tourism, under an hour from Tokyo for Karuizawa, and freehold for life. From a Karuizawa resort villa to a five-figure-euro onsen kominka, the range is wide, but one thread stands out: location and water rights make (or break) the investment.
Keep the fundamentals (costs ≤ 6%, cash purchase for a non-resident, checks on snow, insulation and the seismic standard), and build your yield assumptions on a full year, not the winter peak alone. To be guided from selection to keys, including setting up onsen operation, discover our personalised buying support and our recent projects.
Frequently asked questions
Is it worth investing in Nagano rather than Tokyo?
Nagano offers far lower entry tickets and strong tourist rental yield in onsen and ski zones, with Karuizawa about 1 hour from Tokyo by Shinkansen. In return, demand is seasonal and location (station proximity) is decisive. It is a mountain market, not a dense residential one like Tokyo.
What are onsen hot-spring water rights?
They are the right to draw and pipe thermal water to your property (onsen-ken 温泉権 and inyu-ken 引湯権). The right may be attached to the property or held by an onsen association, with a monthly fee. A property "with onsen" does not always include this right: check it before buying, as it drives an inn's value.
Can a foreigner buy and run an onsen inn in Nagano?
Yes, a foreigner can buy freehold. Running an inn 365 days requires the hotel licence (ryokan gyō-hō); short-term rental without a licence is capped at 180 nights a year (minpaku). A non-resident buys cash, and the purchase grants no residence right.
How much does a kominka cost in Nagano?
Prices run from ¥1 to ¥12M (≈ €7,000 to €80,000) in the countryside, more near stations and onsen. Budget above all for renovation, often ¥5-20M (≈ €33,000-133,000), notably for insulation, a snow-ready roof and compliance if you aim for tourist lodging.
Is a Nagano property's yield reliable year-round?
No: it is seasonal, peaking in winter (ski, onsen) and autumn. A poorly located property, or one dependent on a single peak, is risky. Always build revenue assumptions on a full year and test several occupancy scenarios before buying.
Is Karuizawa a good investment?
Karuizawa is Nagano's most premium market, prized for second homes and high-end rental, with steady demand and firm prices. Entry tickets are high (often ¥30M and up) and rental yield is moderate; it is more a store-of-value and holiday asset than a pure yield play.
Should you worry about snow in Nagano?
Yes: winters are severe. Check the frame and roof built for snow load, budget for snow clearing and real insulation, often absent in old houses. Also consult hazard maps for avalanche and landslide risk before any offer.
Official sources
Take the next step
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