FAQ for Foreign Investors

1.Can foreigners buy real estate in Japan?

Yes. Japan generally has no nationality or residency restriction on owning real estate. Japanese nationals, foreign residents, and non-residents can purchase, own, and sell property. Separate reporting rules may apply to cross-border payments and certain designated land.

2.Do I need a visa or residency to buy?

No. Buying property does not itself require Japanese residency or grant immigration status. Operating a minpaku is a separate regulated activity: the notification requires identifying and contact information, and an absent or overseas host will generally need to entrust operations to a registered Private Lodging Administrator in Japan.

3.What is the “Important Land Use Regulation Act” (重要土地等調査法)?

The Act was fully implemented in 2022. It allows the government to monitor land within designated areas around certain national-security facilities and remote territorial islands. Ownership is not prohibited. However, transactions involving land or buildings of 200 m² or more in a designated special monitoring area generally require advance notification. Designations are location-specific, so check the official map rather than assuming an entire municipality is covered.

Cabinet Office: official area and filing information (Japanese)

4.Are there foreign land purchase restrictions?

As of August 2026, Japan has not enacted a general ban on foreign ownership of land. The government has been reviewing possible additional rules, but proposals and policy discussions are not the same as enacted law. Existing notification, foreign-exchange, agricultural-land, and designated-area rules may still apply to a particular transaction.

5.What is the process for starting a minpaku as a foreigner?

1. Acquire or lease an eligible property; ownership registration in your name is generally permitted.
2. Confirm that the property meets the statutory “housing” requirements and that its lease and condominium rules permit minpaku use.
3. Submit a Private Lodging Business notification (住宅宿泊事業者届出) to the prefecture or authorized municipality, including the required address and contact details.
4. If you will be absent from the property—typically the case for a non-resident owner—engage a registered Private Lodging Administrator unless a statutory exception applies.
5. Comply with fire-safety, guest-register, reporting, 180-day, and municipal ordinance requirements. This is where our map can help with initial research.

6.Do I need a Japanese bank account for Airbnb payouts?

A Japanese bank account is often convenient, but payout availability depends on the platform, your account country, currency, and current payment-provider rules. Some foreign payout methods may be available. Japanese tax and reporting obligations can apply regardless of where the payout is received.

7.Can I pay with Alipay or WeChat Pay?

Yes. We accept Alipay and WeChat Pay in addition to credit cards for both Pro and Agency subscriptions. This is important for customers in mainland China where international credit card usage is limited.

Note: Subscription auto-renewals default to credit card if available. Alipay or WeChat Pay is used for the initial subscription and manual renewals.

8.What taxes apply?

• Real property acquisition tax (one-time; rates and relief vary)
• Fixed asset tax (generally 1.4% of the assessed value, with possible additional city planning tax)
• Japanese income tax on rental or lodging income
• Consumption tax (JCT), if the activity is taxable and applicable thresholds or elections are met
• Potential 20.42% withholding on certain Japan-source real estate payments to non-residents, subject to the payment type and applicable tax treaty

Tax treatment depends on your facts. Appointing a Japan-based tax representative and consulting a licensed tax accountant may be necessary.

9.What must a Korean resident report when remitting investment funds overseas?

For a Korean resident, an overseas remittance exceeding KRW 50 million must be reported to the Bank of Korea, and cumulative overseas investment exceeding USD 5 million requires its prior approval. The filing channel and required documents can vary with the remittance purpose and investment structure, so confirm the procedure with your designated foreign-exchange bank before sending funds.

10.Must a Korean resident report an overseas financial account exceeding KRW 500 million (해외금융계좌 신고)?

Yes. A Korean resident or domestic corporation whose combined overseas financial-account balance exceeds KRW 500 million on any month-end day generally must report the account information to Korea’s National Tax Service in June of the following year. Failure to report or under-reporting can result in penalties. Japan and Korea also exchange reportable financial-account information under the Common Reporting Standard (CRS).

Korean National Tax Service: overseas financial-account reporting (Korean)

11.How does the Korea–Japan tax treaty (한일 조세조약) foreign tax credit work?

Certain Japan-source real-estate payments to a non-resident may be subject to 20.42% Japanese withholding, depending on the payment type. A Korean tax resident generally reports the relevant income in Korea and may claim a foreign tax credit for eligible Japanese tax paid, subject to Korean limits and documentation, so that the same taxable income is not taxed twice without relief. Treaty classification and credit calculations depend on the facts; consult qualified tax professionals in both countries.

12.How does municipal ordinance affect me?

The Private Lodging Business Act caps operation at 180 days per year nationwide. Municipalities may impose stricter local limits, including weekday restrictions in residential zones or restrictions near schools. Our map visualizes researched local rules—click an area to review its score breakdown—but always confirm the current ordinance with the municipality.

13.What if the ordinance changes after I buy?

Local rules can change after purchase, and amendments may use different effective dates or transitional treatment for existing operators. Several Tokyo wards have adopted or considered changes for 2025–2026. Never assume that an existing notification will be grandfathered: check the enacted text, effective date, and municipal guidance before buying and during operation.

14.Where can I get official information?

• MLIT / Japan Tourism Agency Private Lodging Portal
• Japan National Tourism Organization (JNTO)
• Your target municipality’s private-lodging, public-health, fire-safety, and urban-planning offices

16.What language support is available?

This FAQ is available in English, Simplified Chinese (简体中文), and Korean (한국어). Chinese and Korean label translations are also available in the map interface. For other full-document translation needs, contact us.