This article is part of Zagdim’s wiki series on selling property in Japan. It looks at who can legally buy a foreign owner’s Japan property, how different buyer types affect the seller, and what buyers must do differently from 2026 onward under new registration and reporting rules. It’s written for owners comparing offers from different kinds of buyers, or wondering whether the new rules will make a sale harder. The full sale process is covered in the main guide, “Selling Property in Japan as a Foreigner: Buyers, Taxes, Overseas Signing, and Repatriating Funds.”
Why Sellers Are Worried About Who The Buyer Is
Japan has been active in 2026 on foreign ownership of real estate: new nationality reporting at registration, amended reporting rules under the Foreign Exchange Act, and a possible permit system for land near sensitive facilities. Foreign owners holding Japanese property naturally ask: can I still sell? Will selling to a foreign buyer become harder?
The Short Answer
Yes, you can sell, and the buyer isn’t restricted by nationality. As of October 2026, Japan has no nationality restriction or quota on foreigners buying or selling ordinary residential property — you can sell to a Japanese buyer or a foreign buyer. The 2026 rules are mainly procedural requirements for the buyer at the point of registration or acquisition; they don’t affect your right to sell. What does directly affect you as the seller is the buyer type, because it determines whether the buyer must withhold 10.21% from the price before paying you.
How The Buyer Type Affects You As The Seller
Anyone buying Japanese real estate from a non-resident, and paying for it inside Japan, must withhold 10.21% of the agreed price at the time of payment. Corporate buyers must always withhold. Individual buyers must withhold too, in principle. The one exception is an individual buying the property for their own or a relative’s residence, where the sale price is ¥100 million or less.
| Buyer | Withholds 10.21%? | What the seller actually receives |
|---|---|---|
| Individual buying for their own or a relative’s residence, price ¥100 million or below | Exempt | Full amount; you must file and pay the tax yourself by March 15 the following year |
| Individual buying for rental use, or where the price exceeds ¥100 million | Withholds | Balance after the 10.21% withholding; refund or additional payment settled on filing |
| Corporate buyer (including a business that buys to resell) | Withholds | Same as above |
| Buyer who pays from abroad but has a residence or office in Japan | Withholds (treated as paying within Japan) | Same as above |
Two points worth flagging:
- Withholding is the buyer’s legal obligation. Whether it applies depends on the buyer’s status and the intended use of the property, so both points are best spelled out clearly in the sale contract.
- When the buyer is also a non-resident with no residence or office in Japan, and pays the full amount from abroad, current guidance doesn’t spell out whether withholding applies — this remains unconfirmed. Either way, you must file your own tax return by March 15 the following year.
For how the tax itself is calculated, see the companion article, “How Much Tax Do You Pay Selling Property in Japan? Calculating the 10.21% Withholding, the 30.63% Short-Term Rate, and the 15.315% Long-Term Rate.”
What New Registration Requirements Apply To Buyers From 2026
These obligations fall on the buyer (the new owner), but knowing them helps explain why a buyer or their agent may need extra time to prepare documents:
- Nationality reporting (from October 5, 2026): When registering a new owner, the “information for search purposes” (検索用情報) submitted must now include nationality. Some nationalities are recorded by region rather than by country name. This nationality information is kept internally by the registry office and does not appear on the publicly issued certificate of registered matters; one purpose is to help authorities understand the actual scale of foreign-held real estate.
- Name in Roman letters (from April 1, 2024): A foreign national registered as the owner must provide their name in Roman script.
- Domestic contact person (from April 1, 2024): A person residing overseas who registers as the owner must provide the details of a contact person inside Japan, or declare that they have none.
- Notarized proof of address (from April 1, 2024): A foreign buyer residing overseas can prove their address using a sworn declaration notarized in their home country or country of residence, together with a copy of their passport.
What Is The Foreign Exchange Act Report For Foreign Buyers
When a non-resident acquires real estate in Japan, regardless of the amount or size of the property (even at ¥0), they must report it to the relevant authority under the Foreign Exchange Act within 20 days of acquisition. From April 1, 2026, several exemptions were added — for a non-resident’s or relative’s own residence, non-profit activity, or the buyer’s own office use — but these exemptions apply only to “property-related rights” such as leasehold rights, surface rights, or mortgages. Ownership itself is not covered by these exemptions, and a holiday home or second home does not count as a primary residence either. In other words, a non-resident buyer acquiring ownership still has to file the report.
Reporting on the payment side depends on whether the buyer is a resident: when a Japan-resident buyer pays you, the non-resident seller, more than ¥30 million, it’s the buyer who must file the payment report. As the non-resident seller, you’re exempt from this particular report.
Will The Important Land Survey Act Permit System Affect Ordinary Homes?
Under the current Act on the Review and Regulation of the Use of Important Land, etc. (重要土地等調査法), reporting is only required in designated “specially monitored areas” — zones near important facilities and border islands. Within those zones, both the buyer and seller must report when signing a contract transferring land ownership.
On the legislative side: on September 24, 2026, a Liberal Democratic Party task force proposed introducing a “pre-acquisition permit system” for land near important facilities and border islands, under which the government would review any transfer of ownership before it proceeds, regardless of the buyer’s nationality. The Prime Minister said on October 1 that he intended to bring an amendment before the extraordinary Diet session convened on October 5. As of October 9, 2026, no cabinet decision or full bill text could be found. The proposal targets land near important facilities and border islands, not ordinary residential areas in general, and remains under deliberation with nothing finalized.
Whether this applies to you depends on whether your property sits inside one of the designated zones.
What To Check Next
Once you’ve identified the buyer type, the next steps are to estimate the tax and your net proceeds (see “How Much Tax Do You Pay Selling Property in Japan? Calculating the 10.21% Withholding, the 30.63% Short-Term Rate, and the 15.315% Long-Term Rate”) and confirm how you’ll receive the funds (see “How Do You Repatriate Japan Property Sale Proceeds? Foreign Exchange Reporting, Bank Overseas Remittance Reports, and Documents”). For the full process, see the main guide, “Selling Property in Japan as a Foreigner: Buyers, Taxes, Overseas Signing, and Repatriating Funds.”
FAQ: Who Buys A Japan Property
Can a Japan property be sold to a buyer from China or Taiwan?
Yes. Japan has no nationality restriction on foreigners buying or selling ordinary residential property. From October 5, 2026, buyers must have their nationality recorded at registration (for some nationalities, recorded by region), but this is a procedural step for the buyer, not a restriction on the sale.
If I sell to an individual buyer who will live in the property themselves, is withholding skipped?
Yes, if the individual is buying for their own or a relative’s residence and the price is ¥100 million or below, withholding is exempt. You still must file and pay the tax yourself by March 15 the following year.
Will the new owner’s nationality be shown on the public registry?
No. The nationality information is kept internally by the registry office and does not appear on the publicly issued certificate of registered matters.
Glossary
- Withholding at source (源泉徴収): The buyer deducts the tax from the payment and remits it on the seller’s behalf.
- Information for search purposes (検索用情報): The name, date of birth, nationality, and other data a new owner provides to the registry office at registration; it is not made public.
- Domestic contact person (国内連絡先となる者): The contact point inside Japan that an overseas resident registering as owner must provide.
- Foreign Exchange Act (外国為替及び外国貿易法): Japan’s law governing international payments and capital transactions.
- Important Land Survey Act (重要土地等調査法): The law governing surveys of land use near important facilities and border islands.
- Specially monitored area (特別注視区域): Within those zones, the area where land transactions must be reported.
Data Notes
This article was compiled by Zagdim research. The legal provisions have been checked against the original statutes (Verified by Zagdim); market-practice points are labeled separately. Information was checked as of October 9, 2026. The withholding rules follow National Tax Agency guidance; registration rules follow Ministry of Justice pages and the notice dated September 4, 2026; Foreign Exchange Act reporting follows Ministry of Finance and Bank of Japan guidance; the current state of the Important Land Survey Act follows Cabinet Office pages. The following conclusions are not stated explicitly in official documents and are inferred from verification: that ordinary residential property carries no nationality restriction (also supported by industry sources), and that the proposed permit system does not cover ordinary residential areas. The following remain unconfirmed: whether withholding applies when a non-resident buyer pays from abroad with no Japan residence or office, and the area threshold for reporting in specially monitored zones. The permit-system amendment, per Kyodo News reporting, remains under deliberation and unfinalized, and may change. The foreign exchange exemption rules that applied before March 31, 2026 were not re-reviewed in this round, so this article does not compare the rules before and after that date.
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Sources
- Plaza Homes — Selling property in Japan as a foreigner
- National Tax Agency — No.2879 When You Purchase Land, etc. From a Non-Resident
- Ministry of Justice — On Submitting Information for Search Purposes
- Ministry of Justice Civil Affairs Bureau — Notice Dated September 4, Reiwa 8 (Capturing Nationality Information)
- Ministry of Justice — On Applications for Registration of Ownership Rights Made On or After April 1, Reiwa 6
- Ministry of Justice — Handling of Address-Proof Information for Foreign Nationals Residing Overseas
- Ministry of Finance — FAQ on Reporting the Acquisition of Real Estate, etc. in Japan
- Bank of Japan — FAQ on Reports Concerning Payments or Receipt of Payments
- Cabinet Office — Important Land Survey Act
- Kumamoto Nichinichi Shimbun — LDP Proposes Permit System for Important Land Acquisition
- Akita Sakigake Shimpo — Prime Minister Signals Intent on Important Land Regulation, Permit System Introduction
Important Notice
This article is general information and does not constitute individual legal or tax advice. Information was checked as of October 9, 2026. Registration, foreign exchange, and land-related rules may be updated; current announcements from Japan’s relevant authorities take precedence.
