{"id":283,"date":"2023-04-24T15:33:23","date_gmt":"2023-04-24T15:33:23","guid":{"rendered":"https:\/\/companyformationjapan.com\/?p=283"},"modified":"2024-02-06T10:47:50","modified_gmt":"2024-02-06T10:47:50","slug":"buying-a-property-in-japan","status":"publish","type":"post","link":"https:\/\/companyformationjapan.com\/buying-a-property-in-japan\/","title":{"rendered":"Buying a Property in Japan"},"content":{"rendered":"\n<p><strong>Buying a property in Japan<\/strong>&nbsp;by foreign citizens is achievable regardless if they have a permanent resident status or not in&nbsp;<a href=\"https:\/\/www.companyformationjapan.com\/10-things-you-didnt-know-about-japanese-business-culture\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>the country<\/strong><\/a>. Foreign citizens can&nbsp;<strong>acquire a property in Japan<\/strong>&nbsp;by following a relatively easy procedure, if they have their own financial means to cover the transaction.&nbsp;<\/p>\n\n\n\n<p>In this article, our<a href=\"https:\/\/www.companyformationjapan.com\/\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>company formation consultants in Japan<\/strong><\/a>&nbsp;cover on a few important aspects related to this subject.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_65 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title \" >Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/companyformationjapan.com\/buying-a-property-in-japan\/#the-main-steps-when-buying-property-in-japan\" title=\"The main steps when buying property in Japan\">The main steps when buying property in Japan<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/companyformationjapan.com\/buying-a-property-in-japan\/#signing-the-contract-to-buy-a-property-in-japan\" title=\"Signing the contract to buy a property in Japan\">Signing the contract to buy a property in Japan<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/companyformationjapan.com\/buying-a-property-in-japan\/#different-costs-involved-in-buying-a-property-in-japan\" title=\"Different costs involved in buying a property in Japan\">Different costs involved in buying a property in Japan<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/companyformationjapan.com\/buying-a-property-in-japan\/#property-verification\" title=\"Property verification\">Property verification<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"the-main-steps-when-buying-property-in-japan\"><\/span><strong>The main steps when buying property in Japan<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>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.<\/p>\n\n\n\n<p>Once you decide to <strong>buy a property in Japan<\/strong>, it is common to:<\/p>\n\n\n\n<ul>\n<li>Start visiting properties according to your target budget and your preferences; you can start working with a real estate agent, if you so prefer, as soon as you decide to buy a property; the listings can be forwarded by your agent according to your criteria;<\/li>\n\n\n\n<li>Discuss financing: buyers may need to review their options for taking up a loan, if their budget does not cover the entire cost of the desired property;<\/li>\n\n\n\n<li>Submit the letter of intent: buying a property starts with the letter of intent sent to the seller if the property is pre-owned or an application to <strong>purchase a property in Japan<\/strong> if it is a new residential project;<\/li>\n\n\n\n<li>Negotiate with the seller (if needed and applicable), agree to pay the deposit and execute the Explanation of Important Matter (see below);<\/li>\n\n\n\n<li>Arrange any needed final financing details, such as confirming that your loan is approved by the bank;<\/li>\n\n\n\n<li>Sign the final agreement: once everything is in order, you can sign the final agreement with the seller. You will be able to move into your new home as soon as the payment of the remaining sum is confirmed and once any taxes are settled (see below).<\/li>\n<\/ul>\n\n\n\n<p>For many of those who are interested in <strong><a href=\"https:\/\/companyformationjapan.com\/japan-investment-visa\/\" target=\"_blank\" rel=\"noreferrer noopener\">buying a property in Japan<\/a><\/strong>, Tokio and Osaka remain prime locations.<\/p>\n\n\n\n<p>According to real estate <strong><a href=\"https:\/\/www.cnbc.com\/2023\/10\/04\/japans-property-sector-foreign-investments-soared-45percent.html\" target=\"_blank\" rel=\"noreferrer noopener\">reports<\/a><\/strong>, 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.<\/p>\n\n\n\n<p>Cross-border real estate investments from Singapore have been the most significant in 2023 (with an estimated $3 billion acquisition value), followed by <strong><a href=\"https:\/\/companyformationjapan.com\/move-to-japan-from-usa\/\" target=\"_blank\" rel=\"noreferrer noopener\">U.S.<\/a><\/strong> investments ($2.58 billion), and Canadian investments ($1 billion).<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"signing-the-contract-to-buy-a-property-in-japan\"><\/span><strong>Signing the contract to buy a property in Japan<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Before signing any&nbsp;<strong>property<\/strong>&nbsp;<strong>purchase<\/strong>&nbsp;contract&nbsp;<strong>in Japan<\/strong>, it is important to understand all the important contractual matters.<\/p>\n\n\n\n<p>According to the Japanese legislation, every&nbsp;<strong>property purchase<\/strong>&nbsp;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.<\/p>\n\n\n\n<p>The Explanation of Important Matters includes:<\/p>\n\n\n\n<ul>\n<li>A summary of the property at the date of the contract;<\/li>\n\n\n\n<li>The relationship of rights. Our&nbsp;<a href=\"https:\/\/www.companyformationjapan.com\/about-us\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>company registration advisors in Japan<\/strong><\/a>&nbsp;can offer more details on these types of rights;<\/li>\n\n\n\n<li>Different legal limits;<\/li>\n\n\n\n<li>The infrastructure arrangements for the real estate;<\/li>\n\n\n\n<li>The management of the property or the limitation of its utilization;<\/li>\n\n\n\n<li>The payment method agreed upon by both parts;<\/li>\n\n\n\n<li>The compensation for the contract infringement;<\/li>\n\n\n\n<li>The owner\u2019s rights.<\/li>\n<\/ul>\n\n\n\n<p>After the individual decides to <strong>purchase a property in Japan<\/strong>, he or she has to present the following items:<\/p>\n\n\n\n<ul>\n<li>A revenue stamp fee, which depends on the value of the sale;<\/li>\n\n\n\n<li>A seal;<\/li>\n\n\n\n<li>A deposit, usually between 10 to 20% of the sale price;<\/li>\n\n\n\n<li>A personal ID, a driver\u2019s license or a passport.<\/li>\n<\/ul>\n\n\n\n<p>Our team can provide assistance if you are buying the property as part of the steps needed for <strong>company formation in Japan<\/strong>.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"different-costs-involved-in-buying-a-property-in-japan\"><\/span><strong>Different costs involved in buying a property in Japan<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Besides the initial 10 to 20% deposit of the sale value of the property, the costs of&nbsp;<strong>buying<\/strong>&nbsp;and then re-selling&nbsp;<strong>a property in Japan<\/strong>&nbsp;involve the following:<\/p>\n\n\n\n<ul>\n<li><strong>A consumption tax<\/strong>: levied upon the sale of real estate in the country. It has a rate of 10%;<\/li>\n\n\n\n<li><strong>An acquisition tax<\/strong>: this is a prefectural real estate tax of 3% to 4%; until 31 March 2024 this tax is reduced to 1.5% to 2%;<\/li>\n\n\n\n<li><strong>A registration tax<\/strong>: according to the value of the real property, it has rates between 0.4% to 2%;<\/li>\n\n\n\n<li><strong>Other fees<\/strong>: our&nbsp;<a href=\"https:\/\/www.companyformationjapan.com\/company-incorporation-japan\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>Japan company formation<\/strong><\/a>&nbsp;agents can offer more information on what these other fees consist of.<\/li>\n<\/ul>\n\n\n\n<p>If these <strong><a href=\"https:\/\/companyformationjapan.com\/accountant-japan\/\" target=\"_blank\" rel=\"noreferrer noopener\">taxes<\/a><\/strong> 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 <strong>open a company in Japan<\/strong>.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"property-verification\"><\/span><strong>Property verification<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>When <strong>buying a property in Japan<\/strong> 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.<\/p>\n\n\n\n<p>Our team recommends performing real estate due diligence when you <strong>buy a property in Japan<\/strong>. The following issues are commonly verified:<\/p>\n\n\n\n<ul>\n<li>Documents: the title deed of the property \u2013 this is the registration record for the property and it includes information such as the land, the building, the owner, mortgages, and other rights other than ownership ones;<\/li>\n\n\n\n<li>Legal matters: if the property is the subject of ongoing litigation, if there are any ongoing tenant leases;<\/li>\n\n\n\n<li>Built issues: plumbing issues, damages to fixtures and fittings, construction irregularities, etc.<\/li>\n<\/ul>\n\n\n\n<p>Are you planning on buying a property because you are interested in <strong>immigration to Japan<\/strong>? Our <strong>immigration lawyers in Japan<\/strong> can answer any questions you have about visas or <strong><a href=\"https:\/\/companyformationjapan.com\/how-to-obtain-a-residence-permit-in-japan\/\" target=\"_blank\" rel=\"noreferrer noopener\">Japanese residency<\/a><\/strong>.<\/p>\n\n\n\n<p>If you need to know more about the<strong>&nbsp;Japanese property buying guide<\/strong>, please do not hesitate to&nbsp;<a href=\"https:\/\/www.companyformationjapan.com\/contact\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>contact<\/strong><\/a>&nbsp;our friendly&nbsp;<strong>company formation<\/strong>&nbsp;executives&nbsp;<strong>in Japan<\/strong>. In case you need&nbsp;<a href=\"https:\/\/www.plumbers-singapore.com\/\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>professional plumbing services in London<\/strong><\/a>, we can put you in contact with our partners.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Buying a property in Japan&nbsp;by foreign citizens is achievable regardless if they have a permanent resident status or not in&nbsp;the country. Foreign citizens can&nbsp;acquire a property in Japan&nbsp;by following a relatively easy procedure, if they have their own financial means to cover the transaction.&nbsp; In this article, ourcompany formation consultants in Japan&nbsp;cover on a few [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":552,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[584,121,38,12,122,586],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v22.5 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Buying a Property in Japan - Assistance and Conveyancing<\/title>\n<meta name=\"description\" content=\"Here are a few aspects related to buying a property in Japan. 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