Japan

Yes. Japan is one of the most open property markets in the world. Foreigners can purchase any type of real estate — residential, commercial, or land — without residency, without a visa, and with no ownership restrictions. The transaction can be completed entirely from overseas via a tax representative and judicial scrivener. From April 2026, FEFTA reporting (Form 22) within 20 days is mandatory but does not affect the right to buy.

One-time acquisition costs:
• Registration & License Tax: 1.5% on land (reduced rate, extended via FY2026 tax reform; standard 2.0%); 0.4% on newly built buildings (ownership preservation); 2.0% on resale buildings transferred by sale (reduced to 0.3% if qualifying residential, through 31 Mar 2027)
• Real Estate Acquisition Tax: 3% on residential land/buildings (reduced rate through 31 Mar 2027); standard 4%
• Stamp Duty: tiered by contract value (e.g. ¥10,000 for ¥10M–¥50M contracts under reduced rates valid through 31 Mar 2027)
• Judicial scrivener fees: typically ¥100,000–¥250,000
• Consumption tax (JCT): 10% on the building portion of new builds (land is exempt)

Annual holding taxes:
• Fixed Asset Tax (Kotei Shisanzei): 1.4% of assessed value (reassessed every 3 years; next reassessment 2027)
• City Planning Tax: up to 0.3% of assessed value (urban areas)
• Combined effective rate: ~1.7% in 23 wards / Osaka City
Note: Assessed value is typically 50–70% of market value, lowering the effective tax burden.

Non-residents: per NTA rules, tenants (or property managers acting as withholding agent) must withhold 20.42% on gross rent at source. Important exception: withholding does NOT apply when the tenant is an individual renting for personal residence of themselves or relatives. Non-residents can file an annual return (between Feb 16 and Mar 15) to deduct expenses (management, repair, depreciation, mortgage interest) and reclaim any overwithheld tax. A Japan-based tax representative (nōzei kanrinin) is required. Residents: rental income is added to total taxable income at progressive rates 5–45% on net rental income after deductions.

Capital gains tax depends on holding period (counted from January 1 of the year of sale, not the actual purchase date):

• Short-term (≤5 years): 39.63% total (30.63% national income tax incl. reconstruction surtax + 9% local inhabitant tax)
• Long-term (>5 years): 20.315% total (15.315% national + 5% inhabitant)

Non-resident withholding at closing: the buyer withholds 10.21% of the sale price (not the gain) as a credit against final tax liability. The seller files a tax return to compute actual tax owed and claim any refund.

Owner-occupied primary residence: the first ¥30 million of capital gain may be exempt. For homes held 10+ years, gains above ¥30M up to ¥60M may qualify for a reduced 14.21% rate (stacks with the ¥30M deduction). Plan exit timing carefully — crossing the 5-year line roughly halves the tax rate.

Yes — particularly in Tokyo, Osaka, and tourist-heavy cities like Kyoto and Niseko. Tokyo 23-ward asking rents grew 7.82% YoY in Q3 2025 (At Home / SMTRI apartment rent index) — the strongest pace in over three decades. Per Savills Q3 2025 data, average 23W rents reached ~JPY 4,547/m², with the C5W (central five wards) commanding a 21–22% premium. Gross yields typically range 3.4–5% in Tokyo central wards and 4–6% in regional cities. Short-term rental (Minpaku) requires local registration with a 180-night/year national operating cap and stricter ward-level limits in Tokyo and Kyoto.