Buying a property in Japan by foreign citizens is achievable regardless if they have a permanent resident status or not in the country. Foreign citizens can acquire a property in Japan by following a relatively easy procedure, if they have their own financial means to cover the transaction.
In this article, ourcompany formation consultants in Japan cover on a few important aspects related to this subject.
Real estate investments can yield important benefits. The choice to buy property is an important one, especially for individuals who are buying their first house or apartment. Before buyers enter into a provisional sales agreement, they will go through a series of key steps that will help them make a secure and favorable purchase decision.
Once you decide to buy a property in Japan, it is common to:
For many of those who are interested in buying a property in Japan, Tokio and Osaka remain prime locations.
According to real estate reports, Japan remains an attractive location for real estate investments. Foreign investments have increased by 45% in the first half of 2023, compared to the same period a year prior and foreign investor almost doubled their investment value.
Cross-border real estate investments from Singapore have been the most significant in 2023 (with an estimated $3 billion acquisition value), followed by U.S. investments ($2.58 billion), and Canadian investments ($1 billion).
Before signing any property purchase contract in Japan, it is important to understand all the important contractual matters.
According to the Japanese legislation, every property purchase contract has to be paired with an Explanation of Important Matters which has to be signed and sealed by a Real Estate Notary with a National License.
The Explanation of Important Matters includes:
After the individual decides to purchase a property in Japan, he or she has to present the following items:
Our team can provide assistance if you are buying the property as part of the steps needed for company formation in Japan.
Besides the initial 10 to 20% deposit of the sale value of the property, the costs of buying and then re-selling a property in Japan involve the following:
If these taxes are payable by a company that acquires property, our team will provide you with more information about corporate real estate transactions. You may decide to buy a property that will be used as a registered office, in which case the transaction will need to take place at the same time as some of the essential steps needed to open a company in Japan.
When buying a property in Japan it is advisable to perform a verification of the property. This is a step that can take place in the presence of both the buyer and the seller and it is intended to ensure that the actual state of the property is in line with the stated conditions and the characteristics set forth in the sales agreement.
Our team recommends performing real estate due diligence when you buy a property in Japan. The following issues are commonly verified:
Are you planning on buying a property because you are interested in immigration to Japan? Our immigration lawyers in Japan can answer any questions you have about visas or Japanese residency.
If you need to know more about the Japanese property buying guide, please do not hesitate to contact our friendly company formation executives in Japan. In case you need professional plumbing services in London, we can put you in contact with our partners.