You’ve finally found “the one”—that perfect Japanese house you’ve been dreaming about (maybe we even found it for you 😉)—and now you’re eager to move from scrolling through listings to signing on the dotted line. This guide is the exact roadmap we take our clients through. It’s written in the same friendly tone we use on calls and includes the same notes we’d scribble in the margins, so you can see the entire path from start to finish with no mystery fees suddenly leaping out from behind a fax machine (yes, those are still used here in Japan!).
For context, foreigners can buy property in Japan with the same rights as Japanese citizens. It doesn’t matter if you’re already living here or if you’re based overseas and eyeing a vacation home or investment—you can own a house in Japan as a foreigner. (Buying a house, however, won’t give you a visa or residency status by itself—it just means you own property.) That said, purchasing real estate here has its quirks, from old-school paperwork to unique tax rules, especially if you’re navigating the process from abroad. But don’t worry: with the right guidance, it’s absolutely doable.
Let’s break down the process into six clear steps, so you know exactly what comes next once you’ve decided “Yes, this is the house for me.”
Step 1) Go see it (or have us do it) — and don’t skip the “walkaround math”
If you’re in Japan, we’ll book an in-person viewing as soon as possible. If you’re overseas, we’ll go check out the property for you, streaming you in live and gathering the kind of footage you actually need. We don’t just show you the rooms; we show you the context—the street approach, the slope of the land, gutter lines, distance to the nearest house, overhead power lines, ambient road noise—everything, including sticking the camera under the eaves like a curious raccoon. We also always check the local hazard maps for floods, landslides, and tsunamis, because “bottom of the hill with a cute creek” can sometimes mean “seasonal indoor pond.” Japan’s official online Hazard Map Portal lets you layer various risk maps in seconds, and we do this for every target property, whether it’s a rural akiya or a central city condo.
Akiya Reality Check (from Luke)
Personal note from Luke: When I bought my place in Tokyo, I came in with my Aussie brain fully switched on: of course I’ll book a professional building inspection. That’s just what you do back home, right? I floated the idea to the agent, and she smiled and said, very politely, “An akiya might not be what you’re looking for.” I was confused for a second (actually a few minutes, if I’m being totally honest)… and then it finally clicked.
At typical akiya bargain prices, the market is basically saying: there will be issues. You’re not buying perfection; you’re buying potential (plus a to-do list). To the agent, my request for an inspection sounded almost backwards—like I was hunting for problems in a house where the low price already assumes plenty of problems. And that’s the mental shift you have to make as a buyer of an older or vacant house: you’re not paying for flawless condition, you’re paying for possibility. In my case, the bones were decent and there was no horror show, but there were definitely things that needed fixing. I still ended up putting roughly ¥3,000,000 into repairs and upgrades to get it where I wanted. That’s not a failure of due diligence; that’s the model for akiya purchases.
What the Law Says: Since 2018, Japanese real estate agents are required to inform you about the option of a building condition survey (an inspekushon / インスペクション) and, if you request one, help arrange it. Any recent survey results must be included in the legally required Important Matters Explanation (more on that in Step 3) before you sign the contract. Translation: the option for a home inspection does exist here; it’s just not commonly done for cheap properties, and it won’t magically turn an akiya into a perfect new build. If you do get a survey, use it to prioritize the first 3–5 fixes that matter most to you, rather than expecting it to give you a clean bill of health.
What a Viewing Should Look Like
If you (or we on your behalf) are standing in front of a property, the goal is to spot the small details that separate a great deal from a money pit. Where do we start? Walk the perimeter of the house. Is the house sitting on a slope or at the bottom of a hill where water might collect? Watch how rainwater would flow through and around the property—does it pool near the foundation? Take a look at the neighboring houses too. If the newer homes in the area are built on raised foundations a meter or more above ground, that’s a clue the area is prone to flooding. And water issues usually bring friends: termites, rot, mold, and foundation settling. Also, check the gutters and downspouts; if they’re clogged with dirt, leaves, or moss, that tells you water hasn’t been managed properly and could have caused damage.
Next, check whether the house is leaning or settling. You can use a basic level app on your smartphone to see if walls are tilted more than a few degrees. Inside, it’s time to put on your detective hat. I always start with doors, windows, and floors. Do all the doors and windows open and close smoothly? Sticking frames or misaligned doors can signal that the structure has settled or shifted (especially in houses over 40 years old). Floors should feel solid underfoot. Walk around and note any suspiciously bouncy or sagging spots, particularly around sinks, the bathroom, and the kitchen—long-term leaks can rot out floors and attract termites. While you’re at it, check if the walls near those areas are still square and plumb. Look up at the ceilings and down at the base of walls for water stains, which could indicate past (or ongoing) roof leaks.
One of my personal habits is tapping along the wooden support pillars (hashira) from top to bottom. It sounds a bit odd, but you’d be surprised how quickly you can pick up signs of internal rot or termite damage just by listening for changes in sound. It takes only a minute and can save you a fortune in future repairs.
What if you find problems? Well, that’s the reality of buying an older house in Japan. You have to factor in repair costs as part of the deal. Yes, houses out in the countryside here can be astonishingly cheap compared to back home. Even if you’re looking at, say, a ¥6 million listing that needs another ¥4 million in work, that’s about a total of ¥10 million (roughly USD $70k, or around AUD $100k). For perspective, back in Australia you can’t buy much of anything in a decent area for under half a million AUD. So, the real calculation to ask yourself is: Even after I put money into renovations, is the house still worth it for me at the end price? If the answer is yes, then it may be the right buy. If not, walk away before you get in over your head.
How We Help (What a Viewing With Us Looks Like)
Here’s the thing: you don’t have to figure all of this out alone. If you can’t get over here in person to see the house, we’ve got you covered. When we do a viewing for a client, we’re not just wandering around with a camera. We’re actively hunting for the red flags discussed above. We check the rooflines and eaves for sagging, scan the siding for cracks or rot, look for water marks where they shouldn’t be, note any funky slopes or drainage issues, watch for termite traces, inspect the foundation for cracks, and even check the electrical system (like the age of the aircon units and the capacity of the circuit breaker box). We’ll also pan out to show you the wider surroundings, because sometimes the biggest warning sign is the entire property sitting in what looks like a flood path!
On top of that, we layer in the official hazard maps (flood, landslide, tsunami) digitally, so you can see any environmental risks at a glance. And if we spot something that we think needs a pro’s opinion, we’ll call in a licensed builder or surveyor to get a closer look. We’re not pretending to be contractors or structural engineers ourselves; our job is to get the right eyes on any potential problem and make sure you’re seeing the full picture before you commit. The result is that you’ll have a clear understanding of a property’s condition (good and bad) before you decide to move forward.
Step 2) Make the offer (the “kaitori application” stage) and understand the deposit logic
So you’ve found a house you love and it looks solid—now it’s time to make an offer. When you’re ready to pull the trigger, we’ll discuss the terms and strategy with you, then one of our bilingual partner agents (licensed and based in Japan) will prepare and submit the formal purchase offer on your behalf. This offer submission is often called a kaitori moushikomi (買付申込), essentially a purchase application. The agent handles all the back-and-forth of the negotiation and paperwork at this stage.
If the seller accepts your offer, you’ll usually need to post an earnest money deposit (手付金) to secure the deal. The amount is negotiable, but ~5–10% of the purchase price is common. Now, here’s something important to understand about Japanese law: under the Civil Code, if a buyer walks away from the deal without a legitimate contractual reason, the buyer generally forfeits that deposit. If the seller were to back out after taking your deposit, the standard rule is that they owe you double the deposit back. (This double-refund rule is the famous tesuke baikaeshi. That’s not just a folk tale—Japan’s Civil Code Article 557 explicitly spells it out.) We’ll make sure the deposit clause in your contract matches the legal norm and fits your risk tolerance, so you’re protected either way.
Also good to know: since 2022, Japan formally allows online Important Matters briefings and electronic document signing for real estate transactions, as long as certain procedures are followed. In plain language, this means we can run almost the entire home-buying process remotely if needed. You can be sitting in another country and still go through the disclosure briefing via Zoom and sign contracts digitally. Our partner agents handle all the regulated steps in Japanese, and we keep you in the loop in plain English, so nothing gets lost in translation. This is how we’re able to help clients abroad buy homes here without them having to jump on a plane every other week.
How we help: Our role in the offer stage is to make sure you fully understand what you’re agreeing to before any money changes hands. We walk you through the offer terms step by step, flag any odd seller conditions or red flags in the contract, and outline the “what-ifs” (for example, what happens to your deposit if either party pulls out). If there’s something in the offer letter or contract that doesn’t sit right, you’ll know about it. This way, when you do put money on the line, you’re doing it with eyes wide open and no nasty surprises.
Step 3) Get through the paperwork like a pro (without needing Japanese)
Before you sign anything binding, a licensed real estate agent must provide you with a thorough Important Matters Explanation (重要事項説明) — often called the “Article 35 document” after the law that requires it. This is where all the serious stuff is laid out: the zoning of the land, any hazard zone designations, easements or shared road rights, rules if it’s a condo (e.g. pet policies, parking, etc.), the seller’s responsibility for defects, and any special conditions. Since May 18, 2022, the law explicitly allows this briefing to be done online, with all the paperwork delivered electronically, so long as everyone follows the proper procedures. That’s a big step forward for convenience… but it doesn’t help much if the documents are all in Japanese and you’re lost by the second paragraph.
Here are the kinds of documents you’ll typically need to provide (it can vary case by case):
- Photo ID. A passport or driver’s license works fine for identification.
- Residence Certificate (住民票). Only required if you reside in Japan (it proves your address in a Japanese city or town).
- Seal Registration Certificate (印鑑証明). Sometimes required if you live in Japan and will use your registered hanko seal for signing.
- Signature Certificate or Affidavit (署名証明). If you’re signing from overseas or not using a hanko, you might need a document from your embassy/consulate or a notary to verify your signature. (Our go-to judicial scrivener will confirm the acceptable format based on your country.)
Don’t worry: We coordinate with all parties to nail down exactly which documents are needed for your specific deal, so you’re not stuck playing document bingo or making unnecessary trips to the ward office.
How we help (documents & translation): We pre-read every contract and disclosure document that comes our way, translating the parts that matter into English (not just the titles, but the meat of the clauses). As we comb through, we flag common traps like “as-is” clauses, any waivers of defect liability, setback line details (these dictate how close you can rebuild to the road), private road share agreements, whether the property is on septic vs. sewer, and any special conditions that quietly shift risk onto you, the buyer. Basically, we act as your filter, catching the fine-print gotchas before they catch you. We also liaise directly with the listing agent and the judicial scrivener (司法書士—the legal professional who will register your ownership in the official property registry at closing). If you can’t attend the closing in person, we’ll set up a valid power of attorney or arrange the necessary signature certification so the scrivener can still transfer the title to your name.
And here’s something most foreigners don’t realize: in Japan, any licensed real estate agent can handle the transaction for the buyer—it doesn’t have to be the agent who listed the property. This is a huge advantage for foreign buyers, because it means we can bring in one of our trusted bilingual partner agents to represent you from start to finish, even if the listing is from another agency. In other words, you can have an English-speaking expert in your corner the whole way. Buying property in another country is intimidating enough; the last thing you need is to be worrying that you missed something critical in the fine print. With the right agent guiding you, you’ll understand exactly what you’re signing, and you’ll sleep a lot better the night before closing.
(Important note for overseas buyers: As of 2024, if you don’t have a registered address in Japan, you are now required to designate a local contact person when you register a property. This contact’s name and address will go on the official record for your purchase. If you’re an international buyer without residency, we’ll help ensure this requirement is handled (for example, coordinating with a local representative or service) so that your purchase remains fully compliant with the new law.
Step 4) Money flow, timing, and the closing day ritual
Unlike some countries, Japan doesn’t typically use escrow services for standard home sales. Closing day in Japan is a bit of a ritual: buyer, seller, the agents (sometimes there are two, if each side has their own), and the judicial scrivener all meet together. There, you’ll transfer the remaining purchase money (usually via bank transfer on the spot), the scrivener will immediately file the title transfer paperwork, and everyone will stamp the necessary documents with their personal seals (or signatures). Once that’s done, the keys are handed over to you and the property is officially yours. If you’re buying a condo, this meeting is also when you settle any prorated condo fees or reserve fund contributions with the seller, so that costs are split fairly based on the handover date.
After closing, property taxes get divided between buyer and seller based on that handover date. In Japan, the fixed asset tax and city planning tax for a property are charged to whoever is listed as the owner on January 1 of that year. But don’t worry—during closing, the parties adjust (prorate) the amount so that you only pay taxes for the portion of the year after you take ownership. (The seller covers the rest for the portion they owned.) The typical annual rates are 1.4% of the assessed value for fixed-asset tax and 0.3% for city planning tax, but as we’ll see in a second, there are temporary reductions in effect.
Bonus: One-Time Tax Relief in Effect Until March 31, 2027
If you’re buying before March 31, 2027, you’ll benefit from several temporary tax cuts and discounts the Japanese government has put in place for home purchases:
- Real Estate Acquisition Tax: Normally 4% of the assessed value, this is currently temporarily cut to 3% for both land and residential buildings.
- Stamp Duty: The tax on the official sale contract is reduced from the normal rates (the exact amount depends on the purchase price; see the National Tax Agency’s table for brackets). In practice, you often just buy a special revenue stamp at the convenience store and stick it on the contract (for e-contracts, it’s handled electronically).
- Registration & License Tax (R&L Tax): This is the tax paid when the title is registered in your name. The rate is temporarily discounted for registrations through March 31, 2026/2027: for land transfers it’s cut from 2.0% to 1.5%, and for registering a residential building it’s just 0.3% (down from 2.0%) through March 31, 2027 (certain owner-occupancy conditions apply).
- Residential Land Taxable Base Reduction: When calculating the Registration & License Tax on land, only 50% of the land’s assessed value is counted if it’s classified as residential land. (This one isn’t new, but it’s worth noting because it’s a big money-saver—essentially halves the land portion of the tax.)
These measures make a noticeable difference in your upfront costs at closing – and they’re all slated to run until March 31, 2027. If your purchase will happen before then, fantastic. If not, be aware these tax rates could creep back up.
When it comes to the actual flow of funds, a standard bank transfer is the norm on closing day. Technically, yes, you could withdraw and hand over cash (people have literally shown up with suitcases of yen in the past), but that’s extremely rare nowadays and not recommended. If you don’t yet have a Japanese bank account, don’t panic—plenty of services (like Wise, for example) can transfer money from overseas with good exchange rates and low fees. The key is communication: we confirm ahead of time exactly how you’ll send the money and how the seller (and scrivener) need to receive it, so there are no last-minute hiccups. (If you plan to use an international transfer, we often do a small test run of a few hundred yen just to make sure the pipeline is working correctly.)
How we help: We set up a detailed closing checklist for every deal. This covers everything from testing your payment method to confirming the seller’s bank details and acceptance of your chosen method, to locking in all the final numbers for prorated taxes, stamp duty, the scrivener’s fees, and registration tax. That way, you’ll know every yen that’s due on closing day. The only thing left to think about is where you’ll put the new house keys after you get them.
Step 5) Fees & taxes you’ll actually pay (and when)
Now let’s talk about the extra costs — the fees and taxes that come on top of the purchase price. Buying a house in Japan involves a few supplemental expenses that you should budget for in advance, so you’re not caught off guard when the bills arrive.
Here’s an overview of the typical fees and taxes a buyer is responsible for, and when you have to pay them:
- Buyer’s Agent Brokerage Fee: In Japan, the buyer often pays a brokerage commission to their agent upon successful purchase. The legal cap for this is set on a sliding scale by price. For most purchases over ¥4,000,000, the maximum fee is calculated as: Price × 3% + ¥60,000 + consumption tax. (For example, on a ¥10,000,000 purchase, the max fee would be ¥300,000 + ¥60,000 = ¥360,000, plus tax, which comes to ¥396,000.) For lower-priced properties, there’s a special akiya-friendly rule: if the purchase price is ¥8,000,000 or less, an agent can charge up to ¥300,000 (¥330,000 including tax) per party as the fee instead of using the percentage formula (this requires certain disclosures, which our agents will handle). This is why you’ll often see agents quoting “about ¥300k” as their fee for cheap houses. We’ll make sure the correct cap is applied in your case and that you’re not overcharged. (Paid at closing.)
- Revenue Stamp (印紙税) on the contract: Yes, in Japan you literally buy a physical revenue stamp and stick it on the contract to pay the stamp duty (if it’s an electronic contract, the stamp duty is handled electronically, but the cost is the same). The amount of this stamp tax depends on the purchase price of the property. For example, a ¥10 million to ¥50 million contract currently requires a ¥10,000 stamp (thanks to temporary reduced rates). We’ll check the exact bracket for your price in the National Tax Agency’s table so you know the amount. (Paid at contract signing.)
- Judicial Scrivener Fee & Registration/License Tax: The judicial scrivener is the specialist who handles the property title transfer and registers your ownership with the government. You’ll pay Registration and License Tax (登録免許税 or R&L tax) through them as part of that process. The scrivener’s service fee is usually on the order of ¥100,000 (varies by case). The R&L tax itself is based on the government-assessed values (which are often lower than market value) and, as noted above, is temporarily discounted. Roughly, land ownership transfer tax = 1.5% of assessed land value (through Mar 31, 2026), and building ownership transfer tax = 0.3% of assessed building value (through Mar 31, 2027 if certain conditions met). We’ll get these numbers for you in advance. (Paid at closing, to the scrivener who then pays the tax authorities.)
- Real Estate Acquisition Tax (不動産取得税): This is a one-time tax from the prefectural government for buying property. The good news is it’s not due at closing. In fact, you’ll get a bill in the mail several months after you’ve bought the house (sometimes 3-6 months later). The basic rate is 3% of the assessed value for land and buildings (for a personal residence, after certain deductions), thanks to temporary measures (otherwise it would be 4%). Many people forget to budget for this because it comes later, but we will remind you so it doesn’t catch you off guard. (Paid a few months after closing, via a mailed tax bill.)
- Fixed Asset Tax & City Planning Tax (annual property taxes): As mentioned, these annual taxes will be prorated with the seller at closing for the year of purchase. After that, you’ll be paying them annually going forward. The rates total around 1.7% of the assessed value per year (1.4% fixed asset tax + 0.3% city planning tax) in most areas. If you buy a home on January 2, you’ll essentially owe almost a full year of taxes at the next billing, whereas if you buy on December 31, the seller already paid that year and you’d only owe from the next year. Japan typically sends property tax bills in April, and you can pay in installments. (Prorated part paid at closing; then annually.)
How we help: Before you commit to the purchase, we put together a line-by-line estimate of all these costs for your specific case. That includes the brokerage fee (using the correct formula or akiya rule), the exact stamp duty, the estimated scrivener fee and registration tax, a projection of the Real Estate Acquisition Tax (and when you’ll likely need to pay it), plus any prorated taxes or adjustments for utilities and management fees. This “all-in” budget view means you’ll know the real total cost of buying the house, not just the sticker price. No one likes surprise bills, and our job is to ensure you won’t get any.
Step 6) Akiya-specific fine print (read this twice)
When it comes to older homes and akiya (vacant houses), you’ll often see properties marketed “as-is” (現況有姿). In practical terms, this means the seller isn’t making any promises about the property’s condition, and they likely won’t fix anything that’s wrong with it. This is very normal for akiya deals. It became even more prominent after the 2020 updates to Japan’s Civil Code, which changed the old concept of “hidden defect liability” into a broader contract non-conformity liability framework. Many sales contracts now include clauses that limit the seller’s liability for any issues with the property, essentially saying you accept the house as-is, warts and all. However, “as-is” does not automatically wipe away every right you have as a buyer. If a seller knowingly concealed a serious issue and didn’t disclose it, you may still have legal recourse despite an as-is clause. We make sure any such clauses are clearly worded and properly scoped, so you know exactly where you stand. And if there are any gray areas, we’ll explain them so you’re aware of what risk is shifting to you.
Where subsidies can quietly help: Here’s a pro-tip that many foreign buyers aren’t aware of: there are cases where the Japanese government (national or local) will help pay for some of your renovations. For example, if you buy a house that’s not connected to a city sewer and you need to replace an old septic tank with a modern combined-treatment septic system, many prefectures and municipalities offer subsidy programs to cover part of that cost. (Chiba Prefecture, for instance, has had such subsidies, and they update these programs annually.) We always check what programs might be available in your property’s area before you finalize your renovation budget. Note that these subsidies often require that the homeowner has resident status in Japan to qualify, so if you’re buying the house as a non-resident foreigner, you might not be eligible—another reason it’s good to have us research it for you in advance.
How we help: We translate all that “as-is + liability” fine print into plain English for you. We’ll pull examples of similar clauses we’ve seen in other contracts so you can benchmark what’s “standard.” And where it makes sense, we might advise you to pair your purchase with targeted inspections—like a termite inspection, a roof check, or a sub-floor crawl—before you close, as well as getting a solid renovation plan and quote. The goal is that you control the post-purchase spending instead of discovering surprise issues that control it for you. By knowing what you’re getting into, you can budget for fixes on your terms.
Wrapping it Up: Honest Advice Before You Dive In
The akiya landscape is changing fast. We receive hundreds of emails and DMs every week from people saying, “I love this house I found online. I’ll be in Japan in three months to see it.” The truth? That’s not how this market works. Good properties don’t wait around. The best deals often go to the person who raises their hand first. If you don’t have your funds lined up and can’t say “yes” with a deposit ready today, then you’re not really in the game yet. Browsing is fun (who doesn’t love clicking through pictures of old Japanese farmhouses?), but buying requires commitment. When you find the one, you need to be prepared to move quickly or you risk losing it to someone else who is.
The other hard truth: know your real budget. We see a lot of hopeful buyers chasing super-cheap ¥700,000–¥1,000,000 listings (USD $5k–$7k). Yes, houses in that range exist, and yes, they can be great opportunities — but if that price range is your absolute max, you might not be factoring in reality. Whether you’re buying a ¥5,000 house or a ¥5,000,000 house, many of the extra costs (taxes, fees, etc.) don’t change much. The registration tax is based on the government’s assessed value (which might be far higher than your purchase price on a super cheap home), and the brokerage fee alone often comes out to around ¥300,000–¥330,000 yen regardless, due to the minimum fee rule. Add the judicial scrivener’s fee, the stamps, the taxes… you get the picture. You need to budget for the whole journey, not just the price of the house itself.
Here are a few tiny bits of advice we’ve learned the hard way:
- If a house’s price looks shockingly low, expect to spend the difference on it one way or another. That’s how the market “balances out” older homes – the discount on the price will get paid back into the property in renovation or repair costs. Either way, you end up closer to the true value in the end.
- Don’t stress if home inspections feel “different” here. Yes, property inspections are legal in Japan and available — they’re just not as common, especially at akiya price points. We’ll tell you when it’s worth getting one, and we’ll connect you with reliable inspectors when needed. Just remember, an inspection here is usually to prioritize repairs, not to negotiate the seller down.
- “Let’s wait a bit before putting down the deposit” is the fastest way to lose a deal. If you’re serious about a property, a well-placed deposit (with the proper legal protections) is your friend. It signals commitment and locks in your rights. Hesitation, on the other hand, often means someone else snaps it up.
At the end of the day, buying a house in Japan as a foreigner isn’t impossible. Far from it — it just means you need to play by the local rules and be well-prepared. That’s where we come in. We’ve walked this road ourselves, we know the quirks and red flags, and we know how to keep the process moving smoothly so you don’t miss out on a great opportunity due to a paperwork hang-up or a misunderstanding.
So if you’re ready to stop scrolling and start buying, we’re the people you want in your corner. The houses are out there in every corner of Japan, from Hokkaido to Okinawa. The only question is, will you be ready when the right one shows up?
Happy house hunting, and hope to see you in Japan soon!