Japan FEFTA 2026: What Foreign Property Buyers Need to Know

New reporting requirements took effect in April 2026. Here is exactly what changed, what didn't change, and what you need to do.

Updated 2026-04-13 · Based on confirmed legislation and major law firm advisories

The Bottom Line

Foreigners can still buy property freely in Japan. The April 2026 FEFTA changes add two paperwork requirements: (1) all non-resident buyers must file Form 22 with the Bank of Japan within 20 days of purchase, and (2) all buyers must declare their nationality during registration. There are no purchase bans, no foreign buyer taxes, and no residency requirements.

What Changed in April 2026

1. FEFTA Reporting Now Required for All Non-Resident Purchases

Previously, FEFTA Form 22 reporting was mainly required for investment-purpose acquisitions. Starting April 2026, all real estate acquisitions by non-residents require filing — including personal residences, vacation homes, and rental properties.

Form: Form 22 (Report on Acquisition of Real Estate, Article 55-3 of FEFTA)

Filed with: Minister of Finance via the Bank of Japan

Deadline: Within 20 days of acquisition date

Penalty: Up to 3 years imprisonment or JPY 1 million fine (~$6,800 USD)

2. Nationality Disclosure at Registration

All property buyers — Japanese and foreign — must now state their nationality on the registration application and attach a supporting document (passport copy or residence certificate).

Important: This information is classified as internal government data. It is not included in the public property registry and is not visible to other buyers, neighbors, or the general public.

3. Corporate FDI Screening (CFIUS-like Framework)

A separate FEFTA amendment bill submitted March 17, 2026 introduces a screening framework for foreign corporate investment, similar to the US CFIUS system. This primarily affects corporate acquisitions of Japanese companies and has minimal impact on individual property buyers.

What Has NOT Changed

No Purchase Restrictions

Foreigners can buy any type of property anywhere in Japan — residential, commercial, land, rural.

No Foreign Buyer Tax

Unlike Canada, Australia, or Singapore, Japan imposes zero additional taxes on foreign purchasers.

No Visa Required

You do not need a Japanese visa to buy property. Purchases can be completed remotely via power of attorney.

Full Ownership Rights

Foreign buyers receive the same freehold ownership as Japanese citizens — no time limits, fully inheritable, can rent freely.

Mortgage Access

Residents with permanent residency can access rates as low as 0.18%. Non-PR residents: 0.8%–1.4%.

No Residency Requirement

You do not need to live in Japan or intend to live there. Non-residents can own property freely.

Step-by-Step: Buying Property as a Foreigner (Post-April 2026)

1
Find property and negotiate
No change from before. Work with a licensed agent (宅建業者).
2
Prepare documents
Passport copy, sworn affidavit or certificate of signature. Corporate buyers: certificate of incorporation.
3
Complete purchase
Sign contract, pay, transfer ownership via judicial scrivener (司法書士).
4
Nationality disclosure
NEW: State nationality on registration form and attach supporting document.
5
File FEFTA Form 22
NEW: Within 20 days. Can be filed by your agent or scrivener on your behalf.
6
Pay taxes
Real estate acquisition tax, registration tax, stamp duty (unchanged).

How Japan Compares to Other Countries

Country	Foreign Buyer Restrictions
Japan (2026)	No restrictions. Reporting + nationality disclosure only
Canada	Ban on non-resident residential purchases (extended to Jan 2027)
New Zealand	Ban on non-resident purchases since 2018
Australia	Non-residents banned from existing homes; new builds only with FIRB approval
Singapore	5-year residency for houses; condos OK with surcharge
Thailand	Foreigners cannot own land; condo ownership capped at 49%
China	Must live/work in China 1+ year; 1 property limit

Japan remains the most open major economy for foreign property buyers among G7 nations.

Foreign Investment in Japan: Key Numbers

27%

Of property transactions by foreigners

Up from 21% five years ago

¥2.3T

Foreign RE investment (2024)

~$15.7 billion USD

+18%

YoY residential investment growth

¥740B ($5B) in 2024

4.1M

Foreign residents in Japan

+9.5% year-over-year

40%

New apartments in central Tokyo

Purchased by foreigners

Foreign buyer surcharge

No additional tax

Why Were These Changes Introduced?

The primary driver is national security. A Cabinet Office survey found that in FY2024, 3,498 property transactions (3.1% of 113,827 total) near designated critical facilities were by foreign nationals or companies. Chinese nationals accounted for 47.5% of these purchases, followed by Taiwan (11.7%) and South Korea (10.7%).

Prime Minister Takaichi's administration has made foreign land ownership monitoring a priority under the "economic security" framework. Japan conducted a G7 survey and found most member nations already have mechanisms to screen or restrict foreign land transactions — Japan was the outlier with virtually no oversight.

The real estate industry views the changes as moderate and manageable. Major law firms (Mori Hamada, Baker McKenzie, Freshfields) characterize them as transparency measures rather than restrictions. Agencies continue to actively market to foreign buyers.

Looking Ahead: Could Restrictions Come?

The LDP-Nippon Ishin coalition agreement explicitly states that a "bill to strengthen regulations on land acquisition by foreigners and foreign capital" will be formulated for the 2026 ordinary Diet session (January–June 2026). However, as of April 2026, no bill text has been tabled, and outright purchase bans are considered unlikely given:

27% of transactions rely on foreign buyers — a ban would crash the market
Japan's aging population needs foreign investment to sustain property values
The existing Important Land Survey Act (REIRA, 2022) already monitors sensitive areas
Industry lobbying strongly opposes restrictions

Future changes, if any, are more likely to involve prior notification requirements for properties near military bases or critical infrastructure rather than blanket bans.

Frequently Asked Questions

Can foreigners still buy property in Japan after April 2026?

Yes, absolutely. Japan has zero restrictions on foreign property ownership. The 2026 changes add reporting and disclosure requirements, not purchase restrictions. Japan remains the most open major economy for foreign real estate buyers.

What is FEFTA Form 22 and do I need to file it?

Form 22 is the FEFTA report filed with the Bank of Japan within 20 days of acquiring property. Starting April 2026, all non-resident buyers must file it regardless of whether the property is for personal use or investment. Your judicial scrivener (shiho-shoshi) or real estate agent can file it on your behalf.

Will my nationality be made public when I buy property?

No. The nationality information submitted during registration is classified as internal government data and is NOT included in the public property registry. It is used only for government statistical and security monitoring purposes.

What happens if I don't file the FEFTA report?

Non-compliance can result in administrative fines, orders to restructure the transaction, or criminal penalties including imprisonment of up to 3 years or fines up to JPY 1 million (~$6,800 USD).

I live in Japan on a work visa. Do these changes affect me?

If you have maintained your principal residence in Japan (i.e., you are a 'resident' under FEFTA), the expanded reporting requirement does not apply to you in the same way. However, the nationality disclosure at registration applies to all buyers, Japanese and foreign alike.

Do I need a visa to buy property in Japan?

No. There is no visa requirement for purchasing property. Non-residents can buy remotely via power of attorney without ever visiting Japan.

Can I get a mortgage as a foreigner in Japan?

If you are a resident with permanent residency, yes — variable rates start as low as 0.18%. Without PR, rates are 0.8%–1.4%. Non-residents have very limited bank options and typically purchase with cash or through a Japanese corporate entity (KK/GK).

Will Japan ban foreign property purchases in the future?

The LDP-Nippon Ishin coalition has committed to drafting a bill to 'strengthen regulations on land acquisition by foreigners' for the 2026 Diet session. However, no bill text exists yet. Outright bans are considered unlikely given Japan's open-market economic policy and the real estate industry's reliance on foreign investment (27% of transactions).