Introduction

Selling a home in Japan as a foreigner comes with unique challenges, but it is entirely possible with the right preparation and understanding of the process. Whether you’re selling a traditional home, an akiya, or an urban property, this guide will help you navigate the necessary steps, legal requirements, and strategies to maximize your sale.

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1. Can Foreigners Sell Property in Japan?

Yes! Unlike some countries with restrictions on foreign property ownership, Japan allows foreigners to own and sell real estate without residency requirements. However, the process follows Japanese laws and regulations, meaning it’s essential to understand the paperwork, tax implications, and buyer expectations.

2. Preparing to Sell: Legal & Administrative Requirements

Before listing your home, ensure you have the necessary documents and legal clearance.

Essential Documents You’ll Need

✔ Property Registration Certificate (登記事項証明書) – Confirms your ownership of the property.
✔ Fixed Asset Tax Notice (固定資産税納税通知書) – Shows your annual property tax payments.
✔ Identification Documents – Passport, residence card (if applicable).
✔ Land & Building Survey Maps (公図・地積測量図) – Especially important for rural properties and akiya.
✔ Power of Attorney (if applicable) – If you’re selling from abroad, appointing a representative in Japan may be necessary.

3. Pricing Your Home for the Japanese Market

Understanding Market Trends

• Urban Properties (Tokyo, Osaka, Kyoto): Competitive market with higher prices.
• Suburban & Rural Properties: Lower demand, especially for older homes.
• Akiya (Vacant Homes): Prices vary widely, and some may be valued primarily for their land.

Getting a Property Valuation

✔ Hire a real estate agent or property appraiser to determine fair market value.
✔ Compare recent sales of similar properties.
✔ Consider renovation needs—homes in Japan depreciate in value over time.

4. Choosing How to Sell Your Property

Option 1: Selling Through a Real Estate Agent

✔ Recommended for those unfamiliar with the Japanese market.
✔ Agents handle marketing, negotiations, and legal paperwork.
✔ Standard commission is 3% of the sale price + ¥60,000.

Option 2: Listing on Old Houses Japan

✔ Connects you directly with buyers interested in unique Japanese homes.
✔ Reaches international buyers, ideal for selling akiya or historic properties.
✔ Expert guidance available for pricing and marketing strategies.

Option 3: Selling Directly to a Buyer

✔ Avoids agent fees but requires handling negotiations and paperwork yourself.
✔ Suitable for those who already have an interested buyer.
✔ May require hiring a real estate lawyer to ensure a smooth transaction.

5. Marketing Your Home to the Right Buyers

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Domestic vs. International Buyers

• Japanese buyers prefer newer homes and are often hesitant about akiya unless renovated.
• Foreign buyers are more open to akiya and traditional properties but may need financing options.

Best Platforms to List Your Home

✔ Old Houses Japan – Ideal for akiya and unique properties.
✔ Japanese Real Estate Portals (SUUMO, Homes.co.jp, AtHome) – Best for modern homes.
✔ International Real Estate Listings & Expat Groups – Targets overseas buyers.

Photography & Listing Details

• Use high-quality photos showcasing the home’s best features.
• Highlight traditional architecture, renovations, and nearby attractions.
• Clearly state if the home needs repairs, has land restrictions, or is move-in ready.

6. Handling Buyer Inquiries & Negotiations

✔ Be prepared to answer questions about property taxes, land rights, and renovations.
✔ If selling to a foreign buyer, explain the legal process and available payment options.
✔ Work with a real estate agent or legal professional for contract drafting and negotiations.

7. Understanding Tax Obligations & Fees

Taxes You May Need to Pay

✔ Capital Gains Tax (譲渡所得税) – If you’ve owned the property for less than 5 years, the tax rate is 30%; if more than 5 years, it’s 15%.
✔ Real Estate Agent Fees – Standard rate of 3% of the sale price + ¥60,000.
✔ Fixed Asset & City Taxes – Ensure all outstanding taxes are paid before selling.
✔ Inheritance or Gift Tax (if applicable) – If the home was inherited, additional taxes may apply.

Tax Benefits for Foreign Sellers

✔ Some sellers may qualify for tax reductions, especially if reinvesting in Japan.
✔ Consult a tax specialist to determine if exemptions apply to you.

8. Closing the Sale & Transferring Ownership

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

• Clearly outline the sale price, deposit terms, and transfer date.

Step 2: Receive Payment & Finalize Ownership Transfer

• Payments are typically made via bank transfer.
• If the buyer is foreign, they may need assistance with the process.
• Submit the required documents to the Legal Affairs Bureau (法務局) to transfer ownership.

Step 3: Handover Process

• Provide the buyer with keys, property documents, and utility information.
• Notify relevant authorities (municipality, tax office) of the ownership change.

Final Thoughts: Selling Your Japanese Home as a Foreigner

Selling a home in Japan as a foreigner is completely possible with the right approach. Understanding the market, legal requirements, and buyer expectations can help you secure a successful sale.

✔ Have all legal documents ready before listing.
✔ Price your home competitively based on market trends.
✔ Choose the best selling method—real estate agent, direct sale, or Old Houses Japan.
✔ Be aware of tax obligations and fees to avoid surprises.

Old Houses Japan specializes in helping foreign sellers navigate the real estate market, connecting them with local and international buyers.

Need help selling your home? Contact Old Houses Japan today to get started!