How to buy a house in Japan, from A to Z

Three reasons to buy in Japan

• Affordable prices: outside the hyper-centre, the price per m² stays well below Paris or London; houses can be found from a few million yen.
• Freehold for life: you own 100% of the land AND the building (freehold), with no lease and no time limit, the same rights as a Japanese buyer.
• High yield: in short-term rental, a well-located good deal can target up to ~20% net (see my Uguisuan and Kinari Stay projects).

Where to browse listings

The big Japanese portals (in Japanese) to get a feel for the market: SUUMO, at home, Akiya Bank (cheap vacant houses) and Rakumachi (already income-producing). Avoid English middleman portals: contact the seller (almost always their agency, very professional) using AI to phrase your questions, and ask for the exact address, the property's condition and the income breakdown.

No golden visa

Japan has no residence-by-real-estate-investment scheme. Buying a house, a flat or a building grants neither a visa nor a residence status. All Japanese visas are 'activity-based': you must study, work or run a real business. Owning property is a private asset, not an economic activity.

What about the Business Manager visa?

• Since 16 October 2025 its conditions are markedly stricter: minimum capital of ¥30M (≈ €185,000), one full-time employee, a business plan vetted by a certified professional, a dedicated office.
• Holding rental properties and collecting rent is NOT enough: you need a real business you run in Japan (see the 'Investor visa' card).
• To live in your property without running a business, you need a separate visa: work, spouse, HSP, student…
• Good news: you can buy while staying non-resident, then visit as a tourist.

What the Ryokan Business Act says: the 'simple lodging' category

The Ryokan Business Act (hotel law of 1948, reformed June 2018) defines three regimes: ryokan/hotel business, kan'i shukusho, and boarding-house business. Kan'i shukusho (literally 'simple lodging') covers facilities where sleeping space is shared: guesthouses, hostels, dorms, capsule hotels. It is a licence (kyoka) issued through the public health center, not a mere notification like minpaku. Its two decisive advantages: no cap on nights (365/year versus 180 for minpaku), and no minimum room count. That is why the overwhelming majority of Japanese guesthouses operate under this status.

What to look for: existing licence vs. new application, inuki (居抜き) takeover

Two routes: buy a property already licensed as kan'i shukusho (簡易宿所, 365 nights/yr) or create the licence yourself. Since the December 13, 2023 reform of the Hotel Business Act (旅館業法 (ryokan gyōhō)), a business transfer (事業譲渡 (jigyō jōto)) lets the buyer inherit the existing licence through prior prefectural approval (承継承認 (shōkei shōnin)): no more mandatory re-application. Target inuki (居抜き) takeovers (walls, furniture, licence and booking history) on Rakumachi, Tranbi or HOME'S: immediate start, verifiable revenue. Check zoning (用途地域 (yōto chiiki)) first: the licence is impossible in exclusive residential zones (低層・中高層住居専用, 田園住居) and industrial zones (工業・工業専用).

Floor area, sanitation, front desk: the hard requirements

Floor area: 33 m² minimum, relaxed since April 2016 to 3.3 m² × capacity if you host 10 guests or fewer, a 40 m² machiya can thus sleep 6-8 people. Sanitation: 'sufficient' toilets and washbasins, bath or shower required (some local ordinances set exact ratios). A physical front desk (genkan choba) has not been mandatory since 2018 if an equivalent system exists (video/ICT check-in verifying guest identity), and a manager can respond within ~10 minutes in an emergency. Always check the local ordinance: some cities still impose 33 m² or a physical counter.

Fire code (消防法 (shōbōhō)): the make-or-break cost item

A kan'i shukusho is classified (5)-i under the fire code: automatic fire alarm mandatory whatever the size (a wireless 'small facility' version is allowed under 300 m²), illuminated exit-guidance lights (yudoto), commercial fire commercial extinguishers from 150 m² (local ordinances may lower this) (150 m² depending on configuration), flame-retardant certified curtains and carpets. Budget roughly ¥300,000 of equipment for a detached house. The fire department inspection yields the Fire Code Compliance Certificate (shobo horei tekigo tsuchisho), a document the health center requires: no certificate, no licence. Cost this item before buying the property, never after.

Zoning (用途地域 (yōto chiiki)) and the health-center procedure

Under the Building Standards Act a kan'i shukusho counts as a 'hotel/ryokan': allowed in commercial, neighborhood-commercial, quasi-residential, category-2 residential, category-1 residential (≤ 3,000 m²) and quasi-industrial zones; banned in the four exclusive residential zones (low-rise and mid/high-rise) and industrial zones, unlike minpaku, which works almost everywhere. Check the zoning before signing. Procedure: pre-consultation with health center, fire department and planning office, application file (drawings, fire compliance certificate), on-site inspection, licence ~1 month after a complete filing, 2 to 4 months in practice. Fee: ≈¥52,000 in Kyoto (¥22,000–35,000 elsewhere); under 200 m², no formal change-of-use filing (threshold raised in 2019).

Kyoto vs. Osaka vs. Tokyo: three very different regimes

Kyoto is the strictest: minpaku is capped at ~60 days (Jan 15–Mar 16) in residential zones, so the kan'i shukusho licence is THE route, with a manager reachable within 800 m / 10 minutes on foot (max 5 facilities per person) and a special regime for certified machiya. Osaka: tokku minpaku (2-night minimum, 365 days/yr) closes to new applications on May 29, 2026; go through the Hotel Business Act instead. Tokyo: ward-by-ward overlay rules (上乗せ規制); commercial zones are simplest. Everywhere, minpaku owned by a non-resident requires a registered management company (住宅宿泊管理業者 (jūtaku shukuhaku kanri gyōsha)).

Realistic 2025 economics: ADR, occupancy, yield

2025 was a record year: 42.7M visitors, hotel ADR +10.8%, RevPAR +15% over nine months, occupancy +3.2 points. In Kyoto, hotel occupancy runs around 80% annually, peaking at 85–88%. A typical guesthouse: dorm beds ¥3,000–5,000, private rooms ¥8,000–15,000, realistic occupancy 65–80% in tourist cities. On a ¥40–60M machiya (cash purchase, fees ≤6%), 8–12 well-run rooms can target a double-digit gross yield, provided you budget OTA commissions (~15%), cleaning and management (15–20% of revenue).

Step by step, A to Z (3–6 months)

1) Targeting and checks: zoning (用途地域 (yōto chiiki)), hazard map, 検査済証 (kensazumishō), licence validity. 2) Pre-consultation with the health office (保健所 (hokensho)) and fire department (消防署 (shōbōsho)) BEFORE signing. 3) Purchase: offer, disclosure (重要事項説明 (jūyō jikō setsumei)), deed, fees ≤6%, cash if non-resident. 4) Licence takeover via 承継承認 (business transfer) or a new application (2–3 months). 5) Compliance works + obtaining the 消防法 (shōbōhō)令適合通知書 (shōbō hōrei tekigō tsūchisho). 6) Opening; after a takeover, authorities inspect at least once within 6 months. Allow 3–6 months from offer to first guest.

Real listing for sale (July 2026): Nishijin Machiya Guesthouse

Published July 17, 2026 by Heritage Homes Japan: a ~1890 machiya in Nishijin (Kamigyo-ku, Kyoto), 58.39 m² floor area, fully renovated and already licensed as a guesthouse, never operated since the works. Price: ¥31,000,000, billed by the agency as Kyoto's cheapest guesthouse. A textbook turnkey takeover: the licence exists, the history is clean, all that's left is to open. See the listing (24 photos, map) · all guesthouses for sale.

Where to find properties already licensed

Kyoto's specialist agencies print the licence in black and white: Arrows International Realty lists its machiya guesthouses with a "Simple Lodging License" note and its issue date (dedicated Machiya Guesthouse, Minpaku/Airbnb and Hotel/Inn categories, licensed machiya hotels at ¥250–318M in July 2026), and Heritage Homes Japan flags its guesthouses as "fully licensed". These listings land on our hub every day: see licensed properties for sale.

A notification, not a license, but 180 nights maximum

Minpaku falls under the Private Lodging Business Act (住宅宿泊事業法 (jūtaku shukuhaku jigyōhō), 2018): a simple notification (届出 (todokede)) to the prefecture is enough, with no hotel license. The major trade-off: a maximum of 180 rented nights per year, counted from noon April 1 to noon the following April 1. The property must remain a habitable "dwelling": primary home, second home, or a unit offered for rent. At 180 nights, occupancy is capped at 49%: at equal nightly rates, your yield is mechanically halved compared with a kan'i shukusho (簡易宿所) license that can run 365 nights a year.

Non-resident owners: a licensed manager is mandatory

Any individual or company, Japanese or foreign, can file a minpaku notification: no visa or residency required. But as soon as the host does not live on site during stays (家主不在型 (yanushi fuzai-gata), "absent host"), the law requires delegating operations to a 住宅宿泊管理業者 (jūtaku shukuhaku kanri gyōsha), a professional manager registered with the MLIT: key handover, guest register, cleaning, neighborhood complaints. An investor based abroad is therefore automatically concerned: this non-negotiable management cost must be built into the business plan before purchase, alongside acquisition costs (≤ 6%).

Kyoto: 60 days a year in residential zones

Kyoto enforces Japan's toughest local rules. In exclusive residential zones (住居専用地域), minpaku is only allowed from noon January 15 to noon March 16, about 60 days, in the dead of winter low season. Add the "rush-over rule" (駆けつけ要件 (kaketsuke yōken)): for any absent host, a manager stationed within roughly 800 m, able to reach the property in 10 minutes, extended even to properties licensed under the Ryokan Business Act. Since April 2026 the city has beefed up its dedicated team and stepped up surprise inspections. In Kyoto, aim for a kan'i shukusho (簡易宿所) license, not minpaku. Notable exception: machiya certified as 認定京町家 (nintei kyōmachiya) enjoy a wider operating window beyond the winter period.

Tokku minpaku (特区民泊 (tokku minpaku)): Osaka's exception, now closed to newcomers

The National Strategic Zone special regime offered Osaka the best of both worlds: no 180-night cap (365-day operation), in exchange for a 2-night/3-day minimum stay, rooms of at least 25 sqm and foreign-language guest services. The overwhelming majority of Japan's some 7,100 tokku minpaku on record as of summer 2025 (94% in Osaka) are concentrated there. But the city has closed the window: since May 29, 2026, no new certifications or extensions. Beware on resale: the 特区民泊 (tokku minpaku) certification is attached to the operator, not the walls, taking over a certified facility requires a fresh procedure, now impossible in Osaka. For 365-night operation, the remaining route is the 旅館業 (ryokan gyō) licence (kan'i shukusho).

Taxes and the final call: minpaku or kan'i shukusho?

For an individual, minpaku income is in principle "miscellaneous income" (雑所得 (zatsu shotoku)), taxed at progressive rates of 5-45%, with no offsetting of losses against other income, and non-residents remain taxable in Japan. Add lodging tax, rising fast: Osaka taxes stays from ¥5,000 a night since September 2025, and Kyoto climbs to as much as ¥10,000 per person per night since March 2026. The call: minpaku works to test a market or monetize a second home; for a pure investment targeting double-digit yields, the kan'i shukusho (簡易宿所) license (365 nights) is almost always the answer.

Real listing for sale (July 2026): Gojo Furusato Guesthouse

An 1882 machiya renovated in 2024, 3 minutes from Gojo station (Kyoto), sold at ¥49,000,000 with its 180-day minpaku licence and track record: ¥4.96M gross revenue from February to December 2025 and a 4.95★ Airbnb rating. The perfect illustration of the 180-night trade-off: real, verifiable revenue, and a legal cap to build into your yield math. See the listing · all listings.

Where to look

The mainstream portals are SUUMO, Homes and At Home (in Japanese), and real estate.co.jp or Housing Japan in English. For vacant houses, akiya banks (空き家バンク) are published on city-hall websites. Many listings are never translated: a bilingual agent or a buyer's agent unlocks the off-market and the inter-agency REINS database.

Avoid the traps

• Be wary of abnormally low prices (¥1 akiya = heavy renovation, sometimes 再建築不可).
• Verify title, easements, condo rules and seismic condition before any offer.
• Compare honest takes on forums (RetireJapan, r/JapanFinance, r/japanlife) rather than agency ads alone.
• Have every clause translated and explained (the contract is in Japanese).

Apartments: manshon vs apato

A manshon (マンション) is a reinforced-concrete or steel condo (3+ floors) with a lift, good soundproofing, a secured auto-lock lobby and parcel lockers. It is the type foreigners buy most, especially in central Tokyo, because ownership is straightforward. An apato (アパート) is smaller, wood or light steel, older and cheaper but less soundproof. A tower mansion (タワマン, 20+ floors) is the luxury end with concierge service.

Houses, machiya, akiya & ownership

• Machiya: traditional townhouse (Kyoto), preservation duties, renovation subsidies, notice before demolition.
• Akiya: very cheap vacant house, but often a heavy renovation.
• Commercial (店舗): shop or mixed-use, handy for minpaku depending on zoning.
• Freehold (shoyuken) = land + building; leasehold (shakuchiken) = building only, ground rent to the landowner: cheaper entry but trickier resale.

The shared DNA: timber framing (木造軸組, mokuzō jikugumi)

Nearly all traditional Japanese houses share one logic: a post-and-beam frame resting on foundation stones (礎石, soseki), joined by interlocking joinery (木組み, kigumi) rather than structural nails, and dimensioned on the ken (間, ≈ 0.91 m) module, the tatami's. Walls carry no load: partitions (shōji, fusuma) open and move freely. When buying, one date matters most: 1981, the 新耐震 (shin-taishin) seismic code. Before that, plan a survey (耐震診断, taishin shindan) and often reinforcement.

The machiya (町家): the townhouse

Narrow on the street and very deep: the famous "eel bed" (鰻の寝床, unagi no nedoko), a legacy of frontage-width taxation. Its signature: the lattice facade (格子, kōshi), the upper-floor caged window (虫籠窓, mushikomado), the earthen corridor running through (通り庭, tōri-niwa) under its light well (火袋, hibukuro), and the courtyard garden (坪庭, tsubo-niwa). The 3D model on our homepage shows exactly this structure, room by room. Ideal use: an urban guesthouse under the 簡易宿所 (kan'i shukusho) licence, especially in Kyoto.

The kominka (古民家): the old farmhouse

The pre-war rural house (often 100+ years old): tall dark volumes, massive curved beams (梁, hari) hewn from whole trunks, a large earthen floor (土間, doma), an open hearth (囲炉裏, irori) whose smoke preserved the frame, and sometimes a thatched roof (茅葺, kayabuki), beautiful, but redone every 20-30 years at real cost. Generous floor area and land: the perfect candidate for a rural inn, if you budget insulation and code compliance.

The ryokan (旅館): the traditional inn

No longer a house but an operating tool: tatami rooms (和室, washitsu), corridors, large baths (sometimes onsen 温泉), a professional kitchen. Buildings are often hybrid: old timber core, concrete extensions. The appeal: many sell with the 旅館業 (ryokan gyō) licence in place, taken over as 居抜き (inuki), walls, equipment and operating permit, without starting from zero.

Sukiya (数寄屋) and kura (蔵): the refined ones

The sukiya-zukuri (数寄屋造り) style, born of tea pavilions, pushes restraint to the extreme: fine natural woods, a spare tokonoma (床の間), filtered light, the absolute high end, sought after for Kyoto luxury villas. The kura (蔵) is the thick-walled lime-plastered storehouse, near fireproof: converted into a suite, studio or bar, it is a rare asset on a plot.

When buying: what the architecture changes

• Year vs code: before 1981 (even 2000 for timber), seismic survey and reinforcement budget.
• Insulation: near absent in old houses, renovation item no. 1 for hosting comfort.
• 再建築不可 (saikenchiku fuka): many machiya cannot be rebuilt; you renovate, you don't demolish.
• Craftsmen: a real renovation needs specialised carpenters (大工, daiku), allow for lead times.
• Operating target: machiya → urban guesthouse (簡易宿所); kominka → rural inn; ryokan → direct takeover with licence.

The real problem: location

The trap with cheap houses isn't so much the price as the location. The vast majority are isolated, deep in the countryside, far from stations, shops and services: a real 'no man's land' where the property's value stays very limited and resale is hard. Only ~15% of vacant homes are genuinely well located. The good news: Japan's rail network is dense and reliable, so the first thing to check, before the price, is the distance to a station.

Two viable uses, and the golden rule

• Holiday / retreat home: for personal use (a vacation house, a quiet getaway), isolation can be acceptable, you're not buying for resale.
• Renovate to live in (a family wanting the countryside): only viable if the house is near a station (aim for ≤ 20–30 min), and everyday shops. Check this first of all.
• Real renovation cost: ¥10–15M for a full renovation (sometimes > ¥20M); budget 130–150% of the estimate, as the worst problems hide behind walls and under floors.
• Traps to avoid: property tax up to ×6 if a 'special vacant house', 再建築不可 plot (rebuild-not-allowed), incomplete title, many heirs.

Location and risks first

Before looking at price, assess the location (distance to the station, shops, schools, appeal, urban projects), then the natural hazards. The government's official Hazard Map (ハザードマップ) portal overlays, for any address, the risk of flood (洪水), landslide (土砂災害) and liquefaction (液状化). A 1–5 m flood zone is visible at once, and insurance reflects it.

Building, land & yield

• The land outweighs the house: access, shape, orientation, and above all 再建築不可?
• Check structure, roof, utilities (water/gas/electricity), termites (シロアリ), damp.
• Ask for the property's history and past works.
• Compute gross and net yield (利回り) and plan the resale.

Understanding the 13 districts

Japan sorts land into 13 use districts: 8 residential (from the very quiet 'Category 1 low-rise', height 10–12 m, to mixed zones), 2 commercial and 3 industrial. The system is cumulative: a higher zone allows everything the previous one does, plus more uses. In a Category 1 residential zone, a shop under 50 m² is tolerated if it takes up less than half the home.

Traps to check before buying

• Short-term rental: classic minpaku is allowed almost everywhere (180 nights/yr); 365-day operation (ryokan, or tokku minpaku in a special zone) is possible in almost all zones except exclusive residential zones. Always confirm the zoning with the city hall.
• Municipalities add their own limits; condo bylaws can ban short stays.
• 再建築不可: a plot whose road access is under 2 m cannot be rebuilt, value and resale are crippled.
• Check the seismic code (1981 and 2000 standards).

Check before signing

Japan's land registry (登記簿, Legal Affairs Bureau) is reliable and public: you verify the title, easements and mortgages. Before any signature, the licensed agent delivers the 重要事項説明 (explanation of important matters). Beware abnormally low prices and rushed sellers.

Red flags

• Price far below market with no clear reason (再建築不可, hidden defect, 心理的瑕疵).
• Refusal to share history or surveys.
• Pressure to pay a deposit outside the legal framework.
• No licensed agent (宅建業) or no 重要事項説明.

1. Translate the page before you write

If you do not read Japanese, translate the whole listing before contacting anyone: Chrome and Safari translate a page in one click, and a screenshot pasted into an AI gives you a finer reading, floor plans included. Do not stop at the price in large type.

• Prices are written in 万円: 1万 = ¥10,000, so "4,800万円" means ¥48,000,000. This is a foreign buyer's first misreading.
• Areas may be in 坪 (tsubo): 1坪 ≈ 3.3 m². 30坪 is about 99 m².
• Spot straight away 再建築不可 (rebuilding not allowed), 現況渡し (sold as is), 古家付き土地 (land with an old house, the value is in the land).
• Machine translation stumbles on legal terms: have every important point confirmed by the agent, in writing.

2. Write rather than call

Contact the advertiser by email. A call in Japanese cannot be translated live, leaves no trace, and ties you to a time zone. Writing translates both ways, can be re-read, and becomes your negotiation record.

In that first message, always ask for the 販売図面 / 物件概要書, the PDF fact sheet Japanese agencies send on request: plan, registered areas, year built, zoning, charges. It holds far more than the published listing.

3. AI removes the language barrier

This is what changes everything: you no longer need Japanese to deal with an agency. Write your questions in your own language, ask an AI to render them in polite Japanese (敬語), send the Japanese version, then paste their reply back into the same AI. Always keep your own language under the Japanese: it clears up an ambiguity in one second when a translation slips.

That last sentence ("I am using translation software, please forgive any clumsy wording") is a courtesy that lands very well in Japan: it excuses your slips in advance.

4. Ask every question you have

Do not hold back: Japanese estate agents are serious professionals, they answer, and a precise question earns their regard rather than the opposite. Nothing costs you at this stage, the commission falls due only on completion.

• Buildability: 再建築可否, road width (接道: at least 2 m of frontage on a 4 m road), 用途地域 (zoning).
• Land: 境界確定 (boundaries surveyed?), 越境 (encroaching roofs, fences, pipes).
• Building: year built against the 1981 and 2000 standards, 白蟻 (termites), 雨漏り (leaks), frame condition.
• Utilities: water, mains sewer or septic tank, city gas or bottled.
• Charges: the actual property-tax amount, and for a flat 管理費 and 修繕積立金.
• Situation: occupied or vacant, handover date (引渡し時期), and whether the seller's liability for defects (契約不適合責任) is excluded.
• Operation: can the property carry a short-stay licence? Ask before the offer, not after.

5. Move to LINE

To speed things up, install LINE: it is Japan's number-one messenger, the local equivalent of WhatsApp, used by private individuals and professionals alike. Ask the agent for their LINE ID or QR code.

• Replies in minutes rather than in a working day.
• Extra photos and videos on request, including a filmed walk-through.
• You keep pasting messages into your AI: the method does not change, only the tempo does.

Still keep email for anything binding: price, conditions, dates, attachments. A LINE thread gets lost, an email thread can be found again.

6. Making an offer: the 買付依頼書

In Japan an offer is formalised in writing: the letter of intent, called 買付依頼書 (kaitsuke iraisho) or 買付証明書 (kaitsuke shōmeisho). You sign it and pass it to the seller through the agency. It is not the sale contract and does not bind you for good, but it puts you in the queue: on a sought-after property, the first to formalise goes ahead.

To fill it in you need, from the agency: the exact address (所在地), the land area (土地面積) and the building area (建物面積) as registered with the land registry (登記). You add your price, the deposit offered, your preferred contract and settlement dates, your financing (most often 現金購入, cash) and any special conditions.

The form is in Japanese: fill it field by field with an AI, then re-read the translated version before signing.

Download the 買付依頼書 template (.docx)Members only · blank Japanese form, to be completed

The journey, step by step

• 1. Scope & budget: buying power, mortgage or cash, cities and property type.
• 2. Search & viewing (内見 naiken): shortlist, on-site or video viewing, neighbourhood and building analysis.
• 3. Purchase offer (買付証明書 kaitsuke shōmeisho): letter of intent; the first to formalise has priority.
• 4. Legal disclosure (重要事項説明 jūyō jikō setsumei): a licensed agent details the property and its risks before signing.
• 5. Contract (売買契約 baibai keiyaku) + deposit (手付金): signing and a 5–10% deposit.
• 6. Financing & due diligence: loan approval, title, easements and condo checks.
• 7. Settlement & handover (決済・引渡し kessai / hikiwatashi): pay the balance, get the keys.
• 8. Registration (登記 tōki): the shihō shoshi registers the title at the Legal Affairs Bureau.

Secure each step

• The whole contract is in Japanese: have every clause translated and explained.
• The 重要事項説明 (legal disclosure) is mandatory, never buy without it.
• Check zoning and 再建築不可 (rebuild-not-allowed) before the offer.
• Non-resident: arrange a proxy and payment (often cash).

What to gather

• ID: passport; residence card (在留カード) if you live in Japan.
• Non-resident: a certified affidavit (宣誓供述書) replaces the address proof and seal.
• Resident: registered seal (実印) + certificate (印鑑証明) and address proof (住民票).
• Funds: proof of financing (statements, loan approval).

Good to know

• Foreign documents often need a Japanese translation.
• The My Number is required for residents (tax).
• The shihō shoshi checks and prepares the registration deed.

The breakdown of buying costs

On top of the price, budget ≤ 6% in closing costs. The statutory agency fee is 3% of the price + ¥60,000, plus 10% consumption tax. Registration and licence tax is 0.4% on the land transfer and 2% on the building. The acquisition tax (fudōsan shutoku zei) is 3% of the assessed value of a residential property.

The recurring taxes

• Property tax (kotei shisan zei): about 1.4% per year of the assessed value.
• City-planning tax: up to 0.3% in certain zones.
• The tax base is the assessed value, usually below market price.
• Shihō shoshi fees: ¥100,000–300,000, paid once at purchase.

Who can borrow?

Permanent residents and spouses of Japanese nationals get standard loans at the best rates (~0.3–1.5% variable). Without PR it is still possible through 'foreigner-friendly' banks: SMBC Prestia (no PR required, no guarantor, English support), SBI Shinsei, Suruga, Resona, usually with a stable work visa, 3+ years in Japan, income ≥ ¥3–5M, at 0.8–1.4%. The Flat 35 programme is in practice for citizens and permanent residents.

Non-residents: the narrow path (not a French-style fixed loan)

Japanese retail banks do not lend from abroad. Specialist lenders: e.g. Yen Loans (Tokyo licence) (do target non-residents): no Japanese visa, no yen salary, remote application possible. This is not 'the 1% Japanese mortgage': an investor product, dearer and more selective. Other routes by country: Tokyo Star Bank, UOB / ORIX Asia.

• Type: condominiums / apartments (マンション) built after 1990 only. Houses, kominka, machiya, ryokan, whole buildings: declined.
• Location: core focus = Tokyo 23 wards; outside Tokyo, usually ≤ 10-min walk (~800 m) to a station.
• LTV: up to 60% for long-term rental, often 50% for second home / short-term; on appraised value, not asking price. Budget 40–50% cash down + ≤ 6% purchase costs.
• Floating rate: 1-month TIBOR + margin (e.g. ~3.50% → all-in ~4.5–5%). No rate cap on the upside, only a 0% floor. Payment often smoothed for 12 months, then schedule recalculated yearly. Structurally riskier than a French fixed loan; the yen can also move vs the euro.
• Typical fees: commitment + appraisal up front, ~2% origination, 3–6 months' payment reserve, annual servicing, early-repayment penalties in the first 3 years.
• Makes sense mainly if you already have a large down payment and want a liquid Tokyo apartment. Otherwise cash (or refinancing a French property) stays simpler. Get LTV, rate and eligibility in writing before the purchase contract.

The legal guarantor of the purchase

The shihō shoshi (司法書士) is the licensed professional who makes your purchase legally final. On settlement day (決済) they verify the parties' identity and the title, prepare the deed, then carry out the registration (登記) at the Legal Affairs Bureau (法務局): officially recording your ownership.

In practice

• Fees: ¥100k–300k, paid once at purchase.
• Independent of seller and agent: they secure the deal.
• For a non-resident, they coordinate with your proxy.

The most common pitfalls

• Buying only because the price is low (akiya, ¥1…).
• Ignoring the seismic condition (pre-1981) and termites.
• Forgetting that the land matters more than the house.
• Underestimating closing costs (≤ 6%) and a cash reserve.
• Ignoring zoning, 再建築不可 and the condo bylaws.
• Signing a Japanese contract without translation or 重要事項説明.

The right method

• Compare several similar properties.
• Get several renovation quotes (130–150% of the estimate).
• Document every step (photos, notes, invoices).
• Build a team: agent, builder (工務店), tax accountant (税理士), shihō shoshi.

Live in it, or make it work

Three broad routes. Home (primary or holiday house): personal use, mind upkeep and distance. Long-term let: the most stable, manageable remotely via a management company (~5% of rent). Tourist operation (Airbnb/minpaku): the most profitable in tourist cities, but the most regulated (180 nights, zoning, condo bylaws).

Yields & reality

• Gross yield: ~3.6% in Tokyo, ~4.3% in Osaka; net = 55–70% of gross (taxes, management, vacancy).
• Central Tokyo 2.5–3.5%; outer wards 4.5–5.2%. Outer Osaka 6–7%.
• Buildings depreciate (value sits in the land): a wooden house depreciates over ~22 years, and an old property can be depreciated over 4 years to cut tax.
• A high regional yield can mislead if prices fall and vacancy hits 15%.

A supportive market in 2026

Japan's residential market combines still-affordable prices outside the hyper-centre, low rates and solid rental demand in big cities. In Tokyo, the average home price reached about ¥91M in 2025 (+10.7% year-on-year), driven by limited new supply and rising construction costs. Foreign buyers reach 19% in the central wards (Chiyoda, Minato, Shibuya).

Where to find yield

• Yields are often more attractive in Osaka, Fukuoka or Sapporo than Tokyo.
• A liquid, secure market; management can be delegated, even remotely.
• The weak yen offers a currency discount to euro buyers.
• Mind building depreciation: value sits mostly in the land.

Three regimes, three strategies

The Minpaku law (住宅宿泊事業法, 2018) allows short-term rental almost everywhere but caps it at 180 nights/year. Tokku Minpaku (特区民泊, strategic zones such as Osaka or Ōta-ku in Tokyo) lifts the cap (365 d) but imposes a 2–9 night stay and 25 m² minimum, and zones are limited (Osaka stopped accepting new applications in 2026). Ryokan (旅館業法) opens 365 d with no cap and no minimum stay, allowed in almost all zones except exclusive residential zones (低層住居専用地域). Either way, verify the zoning at the city hall before buying, and depending on the city, 180 nights of classic minpaku may already be enough to be profitable.

👉 Simulate your project returns (income, net yield, cash-flow, resale) with our tool.

Check before buying

• Does the zoning allow the intended operation? (exclusive residential zone = no 365-day)
• Do the condo bylaws forbid short stays?
• Strong demand in Kyoto, Osaka, Tokyo and tourist areas.
• Under Minpaku, a licensed operator must manage if the owner is absent.

Why target students

Studios (1R/1K) near universities post some of the highest yields on the market, driven by steady student demand. A share house (organised co-living) stacks several rents under one roof and appeals to students and young workers, especially in Tokyo and Osaka. Foreign investors typically target 4.5–5% gross minimum; in outer Osaka, 6–7% gross is achievable.

Pros & constraints

• + : higher yield, smoothed vacancy (several tenants).
• − : more active management (turnover, cleaning shared areas, house rules).
• Check zoning and condo bylaws (some forbid co-living/operation).
• Often handed to a specialist share-house manager.

Delegate to invest from afar

From abroad, a management company (管理会社) is your relay: finding tenants, collecting rent, inventories, small repairs, dealing with the condo association. Budget ~5% of rent for long-term. For short-term (Airbnb), a specialist manager handles cleaning, check-in, messaging and price optimisation (often 10–20% of revenue).

The network to build

• 管理会社 (management), 工務店 (builder/craftsman), 税理士 (tax accountant), 司法書士 (deeds).
• A tax agent (納税管理人) is required for a non-resident.
• Keep a cash reserve for surprises.
• Centralise quotes, invoices and messages in one file.

Three investment logics

Osaka: a suburban condo (manshon) targets a 4–7% gross yield, on a liquid, high-demand market. Kyoto: a renovated machiya combines heritage value and tourist operation, but minpaku is strictly regulated there (check the zone and licence). Nagano / Hakuba: a mountain chalet or flat for seasonal ski letting, with international guests and strong seasonality.

What the cases show

• High regional yield is paid for in management and seasonality.
• Heritage (Kyoto) protects value but constrains operation.
• Indicative figures: every project is analysed case by case; we do it with you.

Before buying / before works

• Before buying: location, hazard map, zoning & 再建築不可, structure, title, and an all-in budget (agency, taxes, registration, 司法書士, insurance, bank, FX, works, furniture).
• Before works: multiple quotes, structure and roof condition, seismic upgrade, budget 130–150% of the estimate.

Before letting / before reselling

• Before letting: choose the regime (Minpaku / Tokku / Ryokan or long-term), insurance, management company, compliance.
• Before reselling: capital-gains tax (held < 5 years = higher rate), local market, timing.
• Document every step (photos, notes, invoices) in one file.

Short-term vs long-term

The property gain (譲渡所得) is taxed by holding period, assessed on 1 January of the sale year. Short-term (≤ 5 years): about 39% (national + local). Long-term (> 5 years): about 20%. Holding for more than 5 years therefore sharply cuts the tax on resale.

Reducing the tax

• Specific relief possible on a primary residence.
• Acquisition and renovation costs raise the cost basis.
• Mandatory filing, including for a non-resident (via a tax agent).
• The France–Japan treaty avoids double taxation.

The central role of the CoE

Japan has no single visa: each situation maps to a residence status. The keystone is the Certificate of Eligibility (CoE), filed in Japan by the employer or sponsor, then converted into a visa at the consulate (5–7 working days). The CoE takes 1–3 months: in 2026 calendars are saturated, so start 3–4 months before departure.

The main statuses

• Work (Engineer / Specialist in Humanities / International Services): sponsoring employer.
• Student: language school or university; part-time work allowed (28 h/week).
• Cultural / designated activities: arts, cuisine, martial arts (unpaid activity).
• Spouse of a Japanese national or resident, working holiday (under 30), digital nomad.
• Highly Skilled Professional: points system, fast track to PR.
• Business Manager / investor: start and run a company (see the dedicated card below).

2026 reform: the Engineer/Specialist visa now expects Japanese ability (JLPT N2) or tangible economic value.

What the 16 October 2025 reform requires

The ordinance published on 10 October 2025, in force since the 16th, changed the nature of the visa: the old ¥5M threshold (or 2 employees) is history. An application must now meet ALL of the following conditions:

• Capital of at least ¥30M (≈ €185,000), genuinely paid into the company; it may be used to buy the properties it operates.
• At least one full-time employee: a Japanese national or a resident with unrestricted work rights (permanent resident, spouse of a Japanese national…). A foreign employee on a standard work visa does not count.
• Experience or degree: at least 3 years running a business, or a master's-level degree in management.
• Japanese: a high level (JLPT N2 equivalent) is required of the applicant or of a full-time employee.
• Business plan vetted by a certified professional in Japan (SME consultant 中小企業診断士 or certified public accountant 公認会計士).
• A dedicated physical office: a mail-drop address or a corner of the guesthouse is not enough.

Transitional measure: statuses granted before the reform renew under the old rules until 15 October 2028.

From purchase to visa, in practice

• 1. Set up the company: a GK (合同会社) or a KK (株式会社), capital of at least ¥30M, office lease in the company's name.
• 2. Buy the assets through the company: the houses, the ryokan (旅館) or the small hotel, ideally with the lodging licence (旅館業 or 簡易宿所) already in place or obtainable.
• 3. Hire and actually operate: a declared employee, social insurance, accounting, revenue. Immigration judges results, not intentions.
• 4. Renew: a one-year status at first, then 1 / 3 / 5 years depending on the health of the file (results, salaries paid, taxes in order). An empty shell is refused at renewal.

Long-term horizon: permanent residence generally takes 10 years of residence (shortcuts exist via the HSP points system); naturalisation is possible from 5 years. With 42.7M visitors in 2025, a well-located, well-run accommodation can carry this file.

Who it is for, and who it is not for

• A single guesthouse is rarely enough: between the employee's salary (around ¥3M a year including social charges), the office, the accountant and the licences, the business must generate real revenue to convince immigration, and to pay you.
• The right profile: a portfolio of several short-term rental houses, a ryokan, a small hotel, or a mixed activity (operation, renovation, resale) that you run on site.
• You only want to own and stay? No visa is needed to buy: remain non-resident and visit as a tourist (90 days visa-free).
• No visa is ever guaranteed: have the structure validated by a 行政書士 (gyōsei shoshi) specialised in immigration BEFORE buying, not after.

Who is it for?

Launched in 2024, the digital nomad visa allows a 6-month stay for foreign remote workers employed or contracting outside Japan. It requires annual income of about ¥10M (~€60k) and private health insurance for the stay. It grants no residence card (zairyū) and, as it stands, opens no Japanese tax residency: an ideal way to 'test' the country.

Watch-outs

• Not immediately renewable: expect a gap before reapplying.
• No enrolment in national health insurance or the residence register.
• Great ahead of a purchase project or a longer-term visa.

How to obtain it

Permanent residence (eijūken) brings great freedom: no more status renewals, easier credit, free choice of employment. The standard path needs 10 years of continuous residence, at least 5 on a qualifying visa; the spouse path, 3 years of marriage + 1 year in Japan; highly skilled profiles (HSP) may obtain it in 1–3 years.

Tighter rules in 2026–2027

• Strict tax and social-contribution compliance: any default can lead to revocation.
• From April 2027, moving to PR via a work visa will require a 5-year visa (instead of 3).
• Clean record and income stability expected.

How much to budget monthly

A single worker or nomad lives comfortably on €1,500–2,500/month depending on the city. A 1K studio in the suburbs: ¥80,000–120,000 (€500–750); a share house: ¥50,000–70,000. Transport with Suica/PASMO: ¥10,000–15,000. Food: ¥40,000–60,000 mixing konbini, ramen and the supermarket. Osaka is 15–25% cheaper than Tokyo, Fukuoka cheaper still.

The move-in fees that surprise

• To rent, budget 4–6 months' rent: deposit (shikikin), key money (reikin), agency, guarantor, insurance.
• Health: a system ranked among the world's best; national insurance covers ~70%.
• The weak yen still favours euro budgets.

How you are taxed

Beyond 183 days of habitual stay, you become a Japanese tax resident and are in principle taxed on worldwide income. The national scale is progressive from 5 to 45%, plus a local residence tax of about 10% and a 2.1% reconstruction surtax. An expatriate employee on a work visa is usually a tax resident from arrival.

The 'non-permanent resident' status

• For the first 5 years, a 'non-permanent resident' is taxed in Japan only on Japan-source income (and remittances).
• A tax-friendly status early in an expatriation.
• Shakai Hoken contributions (health, pension, unemployment) ≈ 15% of salary, employee side.

A double protection

The France-Japan tax treaty (in force since 1996) avoids double taxation: once your tax residence moves to Japan, you no longer pay French income tax except on French-source income (rents, dividends from French shares). The social-security agreement (2007) avoids double contributions and, under secondment, lets you keep the French scheme.

What it changes for you

• French-source income: still taxable in France under dedicated rules.
• Secondment: the French social scheme can be kept for a limited time.
• Pension: contributions paid in Japan can be counted.
• Upfront structuring avoids nasty surprises on both sides.