Introduction

Selling a home in Japan isn’t just limited to domestic buyers. Many foreign investors, expats, and international homebuyers are interested in purchasing properties in Japan, from urban apartments to akiya (vacant homes) in the countryside. But what should sellers know about selling to foreign buyers?

This guide will break down the key factors, legal aspects, and marketing strategies to attract international buyers and ensure a smooth sale.

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1. Can Foreigners Legally Buy Property in Japan?

The Short Answer: Yes!

Unlike some countries that restrict property ownership for foreigners, Japan has no legal restrictions on foreign buyers. Foreign nationals can purchase land and property without needing Japanese citizenship or residency. However, they must follow the same legal procedures as Japanese buyers.

Key Points for Sellers to Know

✔ No Special Permits Required – Foreigners don’t need government approval to buy property.
✔ No Residency Requirement – Buyers do not need to live in Japan to own real estate.
✔ Same Legal Process as Domestic Buyers – The transaction follows Japanese real estate laws.
✔ Foreign Investors May Be Subject to Additional Taxes – Some foreign buyers may have different tax obligations depending on their country of residence.

2. Why Do Foreigners Want to Buy Property in Japan?

Understanding what drives international buyers can help sellers better market their homes.

Common Reasons Foreigners Buy in Japan:

✔ Investment Opportunities – Some buyers purchase homes for rental income or long-term appreciation.
✔ Vacation Homes – Japan is a popular destination for seasonal travelers looking for second homes.
✔ Akiya Renovation Projects – Many foreigners are drawn to Japan’s affordable vacant homes for restoration and cultural preservation.
✔ Retirement Living – Some buyers are interested in settling in Japan long-term.
✔ Business & Work Relocation – Expats working in Japan often seek to purchase homes instead of renting.

3. Challenges Foreign Buyers Face (and How Sellers Can Help)

While buying property in Japan is possible for foreigners, there are some common challenges that may delay or complicate the sale.

Challenge 1: Financing & Mortgages

• Most Japanese banks do not offer mortgages to non-residents.
• Foreign buyers often pay in cash or need to secure financing from an overseas bank.
• Some banks require foreign buyers to have permanent residency (PR) or a work visa.

✔ Solution for Sellers: Be prepared for cash buyers or recommend banks that specialize in foreign loans.

Challenge 2: Language & Legal Barriers

• Real estate contracts, tax documents, and legal filings are in Japanese.
• Some foreign buyers struggle with understanding local real estate laws.

✔ Solution for Sellers: Offer assistance by working with bilingual real estate agents or providing translated documents.

Challenge 3: Navigating the Buying Process Remotely

• Many foreign buyers purchase from abroad and cannot visit in person.
• Remote transactions require additional trust, transparency, and digital tools.

✔ Solution for Sellers: Provide virtual tours, video calls, and detailed listings to attract remote buyers.

4. How to Market Your Property to International Buyers

If you’re looking to attract foreign buyers, your marketing strategy needs to go beyond traditional Japanese real estate platforms.

Where to List Your Home for Foreign Buyers

✔ Old Houses Japan – Specializes in listing akiya and traditional homes for international buyers.
✔ International Real Estate Websites – Platforms like Zillow, Realtor.com, and Rightmove reach global investors.
✔ Expat & Investor Groups – Social media communities and forums for foreigners interested in Japan.
✔ Real Estate Agencies Specializing in Foreign Buyers – Some agencies cater specifically to non-Japanese buyers.

How to Make Your Listing Appealing

✔ Provide English Listings – Include a well-written English description to attract non-Japanese buyers.
✔ Highlight Foreign-Friendly Features – Explain accessibility, internet availability, and nearby conveniences.
✔ Showcase the Home’s Potential – If selling an akiya, mention renovation possibilities or local subsidies available.
✔ Use High-Quality Photos & Virtual Tours – International buyers rely on visuals since they may not visit in person.

5. Legal Considerations When Selling to a Foreign Buyer

Key Legal Steps for the Seller

✔ Prepare All Necessary Documents – Property registration, tax records, and a sales agreement (売買契約書).
✔ Ensure Smooth Payment Processing – International buyers may use bank transfers, wire transfers, or crypto transactions.
✔ Understand Tax Implications – Foreign buyers are subject to Japan’s standard real estate taxes.
✔ Transfer Ownership at the Legal Affairs Bureau (法務局) – The process is the same as selling to a domestic buyer.

Do Foreign Buyers Pay Additional Taxes?

• No special tax is imposed just because a buyer is foreign.
• However, if they later sell the property, they may have to pay capital gains tax in Japan.

6. Finalizing the Sale & Transferring Ownership

Step 1: Sign the Sales Agreement (売買契約書 – Baibai Keiyakusho)

✔ Outlines the final price, payment terms, and buyer/seller obligations.

Step 2: Receive Payment & Confirm Fund Transfer

✔ Ensure the funds clear through an approved banking method.

Step 3: Official Ownership Transfer at the Legal Affairs Bureau

✔ Submit required documents to finalize the transaction.

Step 4: Handover the Property

✔ Provide keys, utility transfer instructions, and any remaining paperwork.

Final Thoughts: Should You Sell to a Foreign Buyer?

Foreign buyers represent a growing segment of the Japanese real estate market, especially for akiya and rural homes. While there may be language barriers, financing challenges, and legal considerations, international buyers are often serious, cash-ready investors looking for unique opportunities.

If you’re interested in selling to an international audience, Old Houses Japan specializes in connecting sellers with foreign buyers. Our platform makes it easy to reach global investors, offer bilingual listings, and navigate the selling process smoothly. Ready to list your property? Contact Old Houses Japan today and connect with international buyers!

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