Can foreigners buy property in Tokyo? The 2026 rules, costs and process.

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Key takeaways

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The short answer: yes, with two new filings in 2026

Japan places no nationality, visa or residency condition on buying ordinary homes and land. A foreign buyer, whether living in Tokyo or in Paris, receives the same freehold title (所有権) as a Japanese buyer, registered at the Legal Affairs Bureau (法務局), and can sell, rent out, mortgage or bequeath the property freely. There is no foreign-ownership quota, no leasehold-only regime and no requirement to form a local company. This has not changed.

If you are still deciding whether Tokyo is the right market for you, read our companion analysis, Investing in Tokyo real estate in 2026. This article focuses on how to buy and what it costs.

1 April 2026 — the FEFTA acquisition report now covers homes

Under the Foreign Exchange and Foreign Trade Act (外為法, FEFTA), a non-resident who acquires real estate in Japan, or a right over it such as a mortgage or lease, must file a "Report on the acquisition of real estate or rights related thereto in Japan" with the Minister of Finance, through the Bank of Japan, within 20 days of the acquisition. Until 31 March 2026, buying a home for your own or your family's use was exempt. For acquisitions dated 1 April 2026 or later, the Ministry of Finance's FAQ states that the report is required regardless of purpose and even when the amount is zero, and it explicitly includes acquisitions by inheritance or bequest. A resident agent, typically your broker, can file on your behalf, on paper or online.

What matters is residency, not nationality. A French national who works in Tokyo is a "resident" for FEFTA purposes and does not file. A Japanese citizen who lives in Singapore is a "non-resident" and does file. The FAQ's working rule: a foreign national is presumed a non-resident unless they work at an office in Japan or entered Japan more than six months earlier.

5 October 2026 — nationality is now declared at registration

The Ministry of Justice amended the Real Property Registration Rules by Ordinance No. 23 of 2026, promulgated on 31 March 2026 and effective 5 October 2026. Every individual who becomes a registered owner through a sale, gift or inheritance now declares their nationality as a "search information" item and attaches proof: Japanese nationals use a residence certificate showing their family-register domicile or a passport copy; foreign nationals use a passport copy (nationality page), a residence card, a special permanent resident certificate or a residence certificate showing nationality. Expired passports are not accepted. The nationality is kept in an internal file and does not appear on the public register or on the certificate of registered matters that anyone can obtain. Owners registered before 5 October 2026 are not affected retroactively.

What is proposed, and what is not law

Two threads of debate ran through 2026. First, a plan to curb condominium purchases by foreigners was dropped: on 5 June 2026 Nikkei Asia reported that the government and the LDP decided not to include restrictions on real-estate purchases by foreign nationals in the summer policy platform, choosing instead to collect data on foreign ownership. Second, on 2 October 2026 an expert panel recommended a permit system for land within roughly 1,000 metres of Self-Defense Forces and Japan Coast Guard facilities considered vulnerable to drone attack, and on uninhabited border islands. A draft bill presented on 14 October would require prior approval from the central government for those transactions, with penalties of up to three years' imprisonment or a ¥3 million fine, and would apply to Japanese and foreign buyers alike. Jiji Press reported on 23 October 2026 that the Cabinet approved the bill for submission to the Diet. As of November 2026 it is not law, and central Tokyo residential condominiums are outside the zones described. We will update this page as the bill moves.

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How much does Tokyo property cost in 2026?

New condominiums

The Real Estate Economic Institute (不動産経済研究所, REEI) is the benchmark source for new launches. For calendar 2025 it reported an average of ¥136.13 million in the 23 wards (+21.8%), the third straight year above ¥100 million; ¥195.03 million in the central 6 wards (Chiyoda, Chuo, Minato, Shinjuku, Bunkyo, Shibuya; +20.2%); and ¥91.82 million across the Tokyo metropolitan area (+17.4%). Supply fell to 21,962 units in the metro area, the fewest since the survey began in 1973, with 8,064 units in the 23 wards. Scarce land and construction costs are the drivers, not a demand collapse. For fiscal 2025 (April 2025 to March 2026) the 23-ward average was ¥137.84 million (+18.5%).

Resale condominiums: the 2026 turning point

Tokyo Kantei (東京カンテイ) publishes a monthly asking price converted to a 70 m² unit. The 23-ward figure rose for 25 consecutive months to a record ¥128.49 million in May 2026, up 27.4% year on year. It then slipped for four months in a row to ¥126.29 million in September 2026 (−0.4% month on month), while the central 6 wards fell for a fifth month to ¥177.86 million (−1.6%). The driver is unsold stock: more listings now carry price cuts. For a buyer, this is the first real negotiating window in two years. It is a cooling of asking prices, not a crash.

Land prices by ward

Land underpins every price above. The national land price survey as of 1 January 2026 (地価公示) showed 23-ward residential land up 9.0%, after 7.9% the year before, led by Minato (+16.6%), Taito (+14.2%) and Shinagawa (+13.9%). The Tokyo prefectural survey as of 1 July 2026 (基準地価) showed +8.7% for the 23 wards, led by Minato (+16.3%), Taito (+15.6%) and Bunkyo (+13.8%). The core is still outrunning the periphery: Adachi (+5.4%), Katsushika (+5.8%) and Nerima (+5.9%) rose at roughly a third of the pace of Minato.

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Who is buying? Foreign demand in numbers

In November 2025, MLIT published the government's first registry-based study of new condominium buyers. For January to June 2025, buyers with an overseas address acquired 3.0% of new condos in Tokyo prefecture (1.5% in 2024), 3.5% in the 23 wards (1.6%) and 7.5% in the central 6 wards (3.2%). Shinjuku-ku was highest at 14.6%. Of the 308 units bought by overseas residents in the 23 wards, 192 were bought from Taiwan, 30 from China and 21 from Singapore. MLIT's conclusion was that overseas buyers are not the main driver of price inflation.

The follow-up released on 15 September 2026 covered full-year 2025: 2.5% in Tokyo prefecture (down 0.5 points from the first half), 5.9% in the central 6 wards, 3.4% in Osaka, 2.2% in Kyoto and 0.5% in Aichi. The same release introduced a broader, name-based estimate of buyers "presumed foreign", which includes foreign residents of Japan; secondary reports put that figure at 11.9% for condo purchases in the central 6 wards. The two definitions are not comparable: "overseas address" counts Japanese expatriates and excludes foreigners living in Tokyo.

Behind this demand is a fast-growing expatriate base. Tokyo had 783,701 foreign residents on 1 January 2026, up 62,478 (+8.66%) in a year, about 5.6% of the population (Tokyo Metropolitan Government, resident register). Nationally, foreign residents reached a record 4.03 million. A separate Immigration Services count gives 801,438 for Tokyo at end-2025; the two series use different bases.

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Full cost breakdown: buying a ¥100 million resale condo

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Step by step: how a foreigner buys in Tokyo

1. Define the budget and the currency plan. Your purchasing power moves with USD/JPY or EUR/JPY; model it before you view.
2. Engage a licensed broker. Only a licensed real-estate transaction business (宅地建物取引業者) may broker a sale in Japan. GAISAPP works with licensed partner Livmo (Tokyo Governor (3) No. 98974).
3. View and make an offer. You sign a purchase application (買付証明書), which is not binding.
4. Important Matters Explanation (重要事項説明). A licensed transaction specialist must explain the property's legal and physical condition before you sign.
5. Sale contract and deposit. Typically 5–10% of the price.
6. Settlement and registration. You pay the balance; the judicial scrivener registers the transfer the same day. Since 5 October 2026 the application includes your nationality declaration.
7. Within 20 days (non-residents only). File the FEFTA acquisition report through the Bank of Japan, or have your resident agent do it.
8. After closing. Register a domestic contact if you live abroad, appoint a tax agent (納税管理人) for fixed-asset tax, and set up payment of management and repair-fund fees.

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Mortgages, visas and residency status

Owning property gives no right to live in Japan; a visa is a separate matter. Japanese banks generally lend to foreign residents with permanent residency, or with a stable work history in Japan and yen income. Non-residents are rarely financed by domestic banks and usually buy in cash or through specialist lenders in their home country. If you live abroad, plan for a cash purchase, and factor in wire-transfer timing and the FEFTA report.

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Ongoing obligations after you buy

• Fixed-asset tax and city-planning tax are billed every year by the ward; a tax agent handles this for non-residents.
• Address and name changes must be updated on the register within two years, since 1 April 2026, with a fine of up to ¥50,000; changes that occurred before April 2026 must be registered by 31 March 2028.
• Selling later as a non-resident: the buyer generally withholds 10.21% of the price and pays it to the tax office. Our companion guide, Selling inherited property in Japan from overseas, explains the mechanics and the capital gains rates.

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Frequently asked questions