Selling Japanese Property as a Foreigner: Buyers, Tax, Remittance

This guide is part of Zagdim’s wiki series on buying and owning property in Japan. It is written for overseas owners who hold a condominium or detached house (ikkodate) in Tokyo, Osaka, Fukuoka, or Hokkaido in their own name and are considering selling it, and sets out the rules that come into play once a sale is underway.

The short answer first: a foreign owner can sell property in Japan. There is currently no nationality restriction on buying or selling ordinary residential property in Japan, and the buyer can be Japanese or foreign. When the seller lives abroad and is classed as a “non-resident” under Japanese tax law, three things work differently from a resident seller: the buyer typically must withhold 10.21% of the sale price at payment; capital gains tax applies only at the national level, at 30.63% for short-term holdings and 15.315% for long-term holdings; and the seller must file a final tax return through an appointed tax agent by March 15 of the following year, with any excess withholding refunded at that point. Sellers who are not physically in Japan can still complete the transfer using documents certified by a local notary, and there is no permit requirement to remit the sale proceeds out of Japan.

Can Foreigners Sell a House in Japan? Who Can They Sell It To?

Yes. As of October 2026, Japan has no nationality restriction or quota on buying or selling ordinary residential property. A foreign owner can sell to a Japanese or a foreign buyer, and the procedures and tax treatment are largely the same as for a Japanese seller.

There is one regional exception: in “Specially Monitored Areas” designated under the Act on the Review and Regulation of the Use of Important Land, etc. — certain areas around important facilities and border islands — both the buyer and seller must file a report when signing a contract to transfer land ownership. It is worth confirming with your agent before signing whether the property falls inside one of these areas.

Who the buyer is affects your cash flow, not whether you can sell:

Starting in 2026, buyers also have more to do at registration: from October 5, new owners must declare their nationality when registering (for example, Taiwanese nationals declare by region), and this information does not appear on the public register; a foreign buyer living abroad must also provide a domestic contact person and a notarized proof of address; and a non-resident buyer must report to the relevant authority under the foreign exchange law within 20 days of acquiring the property, regardless of the amount. These are all obligations on the buyer and do not affect your right to sell.

Separately, the government is reviewing whether to move to a prior-permit system for acquiring land around important facilities and border islands, regardless of nationality. As of October 9, 2026 this has not been finalized, and it would not apply to ordinary residential areas.

For more on who can buy and what registration and reporting a foreign buyer must handle, see “Who Can Buy a Japan Property? Buyer Types, 2026 Nationality Registration, and Foreign Buyer Reporting.”

What Steps Take You From Hiring an Agent to Handover?

You can hire a licensed real estate agent (takken-gyosha) to find a buyer and prepare the contract; the registration transfer itself is normally handled by a judicial scrivener (shiho-shoshi). The usual order is:

1. Gather your documents before listing: registration identification information (or the older-style certificate of ownership), the purchase contract and fee receipts, the acquisition date, and any management or mortgage documents.
2. Get an agent valuation: an agent must by law explain the basis for any price opinion. You can also check comparable transaction prices yourself on the Ministry of Land, Infrastructure, Transport and Tourism’s Real Estate Information Library, which has an English interface.
3. Sign a listing agreement: an exclusive listing agreement (which bars you from listing with another agent at the same time) runs for a maximum of three months and can be renewed; the agent must report on progress at least once every two weeks.
4. Find a buyer and sign the sale contract.
5. Handover: the final payment and the ownership transfer registration happen on the same day; fixed asset tax is typically prorated by the number of days from the handover date, as set out in the contract.
6. File the following year: appoint a tax agent and file your final tax return between February 16 and March 15 of the following year.
7. Remit the sale proceeds out of Japan.

Agent fees are capped by law: for a sale price above JPY 4 million, the cap can be roughly calculated as “sale price x 3.3% + JPY 66,000” (tax included). The cap is a ceiling, not a fixed price, and it can be negotiated.

What Taxes Apply When Selling? How Is It Different for Non-Residents?

Three things to know upfront:

First, the buyer withholds 10.21%. Anyone who buys Japanese property from a non-resident and pays them within Japan must withhold 10.21% of the sale price (not the profit) at payment, and remit it to the tax office by the 10th of the following month. This applies whether the buyer is an individual or a corporation, with the sole exception of an individual buyer purchasing the property for themselves or a relative to live in at a price of JPY 100 million or less. The amount withheld is not the final tax bill — it is credited back when you file.

Second, the capital gains tax rate depends on how long you held the property as of January 1 of the year you sell. The taxable capital gain equals the sale price minus (acquisition costs plus transfer costs) minus any special deduction. If your holding period as of January 1 of the sale year is five years or less, it counts as short-term: 30% income tax plus a 2.1% surtax, for a combined 30.63%. Beyond five years, it counts as long-term, for a combined 15.315%. The more commonly cited rates of 39.63% and 20.315% are what Japanese residents pay once a 9% or 5% resident tax is added on top. Resident tax depends on whether you have a residence in Japan as of January 1 of the year after the sale; a seller who has no residence in Japan on that date generally does not pay resident tax, though it is worth confirming your individual situation with a licensed tax accountant (zeirishi).

Pay close attention to how the January 1 cutoff works: for example, if you bought in March 2021, selling at any point during 2026 still counts as short-term — it only becomes long-term from January 1, 2027 onward. In practice, you need to pass the sixth January 1 after your purchase date.

Third, filing is mandatory. A non-resident seller who makes a profit must file a final tax return between February 16 and March 15 of the year after the sale, even if the buyer did not withhold anything — you still have to file and pay. Anyone living outside Japan must first appoint a Japan-resident tax agent, such as a relative or a tax accountant. Any withholding above what you actually owe is refunded once you file.

Two further points: Japan’s “JPY 30 million special deduction” only applies to a home you actually lived in — it does not apply to an investment property you never occupied or only used as a vacation base. Whether someone who once lived in the property and later moved abroad still qualifies is not clearly addressed in official guidance and remains unconfirmed. Separately, under a 2026 consumption tax revision, agent fees charged to non-residents for selling Japanese property become taxable (except under contracts signed on or before March 31, 2026); the exact start date for this change is still to be confirmed.

Which of these applies to you depends on your holding period, the type of buyer, and whether you ever lived in the property yourself.

As a worked example: take a Tokyo condominium bought in March 2021 for JPY 50,000,000, never rented out, and sold to a corporate buyer for JPY 60,000,000. The estimated taxable capital gain is about JPY 6,828,000. Selling in October 2026 counts as short-term, with tax of roughly JPY 2,091,000 — but the buyer would first withhold JPY 6,126,000, so after filing, about JPY 4,035,000 would be refunded. If the sale instead happens in February 2027, it counts as long-term, with tax of roughly JPY 1,046,000. For the full calculation and assumptions, see “How Much Tax Do You Pay Selling Property in Japan? Calculating the 10.21% Withholding, 30.63% Short-Term, and 15.315% Long-Term Rates.”

Can You Remit the Sale Proceeds Out of Japan?

Yes. Under the foreign exchange law, outbound remittances and currency exchange are free except for certain payments that require a permit, and remitting sale proceeds out of Japan does not require one.

The reporting obligation falls on someone else: under the foreign exchange law’s payment reporting rule, any single payment of JPY 30 million or less is exempt from reporting, and a non-resident seller is also exempt from the reporting obligation itself; if a Japan-resident buyer pays you more than JPY 30 million, it is the buyer who must report it. Separately, banks file a report with the tax office for every outbound remittance over JPY 1 million, and under anti-money-laundering rules will verify your identity and the purpose of the transaction, and may ask about the source of funds.

One thing to check before selling is your bank account: some Japanese banks restrict account use once the holder has left Japan, and whether the final payment can be remitted directly to your overseas bank account, and what documents each bank requires, was not verified in this review — follow your bank’s written requirements. For more, see “How to Remit Japan Property Sale Proceeds: Foreign Exchange Reporting, Bank Overseas Remittance Reports, and Documents.”

How Do You Sign and Complete the Transfer If You Are Not in Japan?

You can. The registration transfer normally requires a certificate of seal registration, and someone living abroad can substitute a certified signature instead. However, signature certification at Japanese diplomatic missions is only available to Japanese nationals, so a seller of another nationality needs to use a notary where they live.

The usual process: the judicial scrivener drafts an affidavit in advance and sends it to you; you sign it before a local notary and have it certified, then mail the original back to Japan to be attached to the registration filing. If the address on the registration no longer matches your current address, the same notarized-document approach is used to document the change of address.

Two other things need to be handled at the same time: appointing a tax agent, and — if the registered address is being changed to an overseas address and a domestic contact person has not yet been registered — providing a domestic contact (an individual or a company, such as the judicial scrivener’s firm) or declaring that there is none. For more, see “Selling a Japan Property From Abroad: Notarized Affidavits, Tax Agents, and Domestic Contacts.”

What Documents Should You Prepare Before Hiring an Agent?

Confirm you have the following:

• Registration identification information or certificate of ownership: properties registered from 2005 onward use a 12-digit registration identification code; older properties have a paper certificate of ownership. Neither can be reissued if lost — if it is missing, you can use the advance-notice system or a judicial scrivener’s identity-confirmation procedure instead.
• The address on the registration: from April 1, 2026, any address change must be registered within two years. If you moved before April 1, 2026 and never registered the change, you must register it by March 31, 2028, or face a fine of up to JPY 50,000. A mismatched address will hold up the transfer in any case, so resolve this before you sell.
• The purchase contract and the fee receipts from when you bought: needed to calculate acquisition costs; if these cannot be found, you are limited to using a flat 5% of the sale price as an estimate.
• The acquisition date: this determines whether you are taxed at the short-term or long-term rate.
• Condominium management documents, fixed asset tax notices, and mortgage records.

For the full checklist and where to obtain each document, see “Documents Checklist Before Selling a Japan Property: Registration Identification Information, Address Change Registration, and Management Documents.”

FAQ: Foreigners Selling Property in Japan

Can a foreigner sell a Japanese house to another foreigner?

Yes. Japan has no foreigner quota. A foreign buyer must provide extra information at registration, such as nationality and a name in Roman letters, and a buyer living abroad must also provide a domestic contact — but these are procedures for the buyer, not restrictions on the seller.

If the owner lives outside Japan, is the tax rate 39.63% or 30.63%?

A non-resident seller who has no residence in Japan as of January 1 of the following year generally pays only the national-level rates: 30.63% short-term, 15.315% long-term. The 39.63% and 20.315% figures are what Japanese residents pay once resident tax is added.

The buyer withheld 10.21% — do I still need to file a tax return?

Yes. Withholding is not your final tax liability. You must file a final tax return through a tax agent by March 15 of the following year; any excess withholding is refunded, and any shortfall must be paid.

How is the five-year holding period for Japanese property calculated?

It is based on your holding period as of January 1 of the year you sell, not your actual sale date. For example, if you bought in March 2021, you would need to sell on or after January 1, 2027 for it to count as a long-term holding.

Do I need approval to remit Japanese property sale proceeds abroad?

No permit is required to remit the funds out. A non-resident seller is exempt from the foreign exchange law’s payment reporting requirement. Banks report any outbound remittance over JPY 1 million to the tax office and will verify your identity and the purpose of the transaction.

Glossary

• Non-resident (hikyojusha): an individual who has no residence in Japan and no place of abode continuously for one year or more.
• Source withholding (gensen choshu): tax that the buyer withholds from the payment at the time of payment and remits on the seller’s behalf.
• Capital gain on transfer (joto shotoku): the profit from selling the property — the sale price minus acquisition costs, transfer costs, and any special deduction.
• Final tax return (kakutei shinkoku): the individual income tax return filed each year between February 16 and March 15.
• Tax agent (nozei kanrinin): a person residing in Japan who handles tax filings on behalf of someone who does not live in Japan.
• Tax accountant (zeirishi): Japan’s licensed tax professional.
• Judicial scrivener (shiho-shoshi): the professional who handles real estate registration filings.
• Registration identification information (toki shikibetsu joho): the 12-digit registration code that has replaced the paper certificate of ownership for properties registered since 2005.
• Affidavit (sensei kojutsusho): a document signed and certified before a notary, attesting that its contents are true.
• Specially Monitored Areas (tokubetsu chushi kuiki): areas near important facilities and border islands where land transactions must be reported in advance.

About This Research

This article was compiled by Zagdim research. The legal provisions have been checked against the original statutory text (Verified by Zagdim); market practices are noted separately where they appear. Information was checked as of October 9, 2026. Tax rules follow the National Tax Agency’s guidance and the original e-Gov statutory text; registration rules follow Ministry of Justice pages and notices; foreign exchange rules follow the Ministry of Finance, the Bank of Japan, and the original foreign exchange law text. The following conclusions are not stated outright in any single official document but are inferred from verification: there is no nationality restriction on ordinary residential property, a non-resident seller generally does not pay resident tax (also supported by industry sources), and an investment property that was never lived in does not qualify for the JPY 30 million special deduction. The following points remain unconfirmed: whether a former resident who later moved abroad can still claim the JPY 30 million special deduction, the exact start date for the consumption tax change to agent fees, and non-resident account restrictions and each bank’s documentation requirements for outbound remittance. The affidavit procedure, the handover process, and the proration of fixed asset tax are based on industry practice rather than statute. The proposed permit system under the important land law is still under review, has not been finalized, and may change.

Have a question about this guide? Leave a comment below, or ask Zagdim directly.

Sources

National Tax Agency – No. 2879: When You Purchase Land, etc. From a Non-Resident | National Tax Agency – No. 3211: Calculating Tax on Short-Term Capital Gains | National Tax Agency – No. 3208: Calculating Tax on Long-Term Capital Gains | National Tax Agency – No. 3302: Special Exception When You Sell Your Home | National Tax Agency – No. 12014: Real Estate Income of Non-Residents | National Tax Agency – A1-7: Procedure for Notifying the Appointment of a Tax Agent | National Tax Agency – Reiwa 8 (April 2026) Consumption Tax Act Amendment Notice | Edogawa City – Treatment of Resident Tax for Those Overseas as of January 1 | Cabinet Office – Act on the Review and Regulation of the Use of Important Land, etc. | Kumanichi Shimbun – LDP Proposes Permit System for Important Land Acquisition | Ministry of Justice – On Applying for Search-Use Information | Ministry of Justice – On Ownership Registration Applications Made From April 1, 2024 | Ministry of Justice – On the Mandatory Registration of Address Changes | Ministry of Justice – Treatment When a Certificate of Seal Registration Cannot Be Obtained Due to Residing Abroad | Ministry of Foreign Affairs – Certification at Overseas Diplomatic Missions | Ministry of Finance – FAQ on Reporting the Acquisition of Real Estate in Japan | Ministry of Finance – Procedures Required for Remittances Between Japan and Overseas | Bank of Japan – FAQ on Payment/Receipt Report Forms | e-Gov – Act on Statements of Overseas Remittances, etc. | Financial Services Agency – Please Cooperate With Identity Verification Procedures | e-Gov – Building Lots and Buildings Transaction Business Act | Ministry of Land, Infrastructure, Transport and Tourism – Amount of Compensation (Notice No. 1552) | Ministry of Land, Infrastructure, Transport and Tourism – Real Estate Information Library | Real Estate Transaction Promotion Center – Alternatives to Certificate of Seal Registration for Foreign Sellers | Plaza Homes – Selling Property in Japan as a Foreigner | Housing Japan – Fees and Taxes of Selling Your Home in Japan | Tsuji Global Tax Desk – Selling Japanese Property as a Non-Resident | Nomu Real Estate Solutions – Required Documents for Sale | at home – Required Documents for Selling a Condominium

Important Notice

This article is general information and does not constitute individual legal, tax, or real estate transaction advice. Information was checked as of October 9, 2026. Rules may be updated; follow current announcements from the relevant Japanese authorities, and consult a licensed tax accountant, judicial scrivener, or other professional where needed.