Mortgage in Japan Without Permanent Residency: Buying a Home

Disclaimer: This article provides general information based on official sources as of October 2026. It is not legal, tax, or financial advice. Interest rates, tax rules, and bank conditions can change. Before buying, check with financial institutions, real estate agents, and professionals such as tax accountants and judicial scriveners.

You can buy a home in Japan regardless of nationality. Whether you can get a mortgage, however, depends a lot on your residence status (visa). Permanent residents can also apply for mortgages that require permanent residency, while people without permanent residency have far fewer options and stricter conditions.

There were also several changes in 2026 to rules related to property ownership by non-Japanese nationals. A procedure for declaring nationality at registration has started, and the reporting requirements for property acquired by non-residents under the Foreign Exchange Act have expanded.

In this guide, we cover:

• The rules for buying a home in Japan, and changes in 2026
• Mortgage conditions by residence status, and options without permanent residency
• Current interest rates
• The buying process in six steps
• Taxes and costs
• What to check before buying
• The mortgage tax deduction, and taxes when you sell

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1. Can You Buy a Home in Japan Without Japanese Citizenship?

Buying an ordinary home isn’t prohibited based on nationality. There are, however, some procedures and rules to know.

Declaring your nationality at registration (from October 2026)

From October 5, 2026, anyone who becomes the registered owner of a property must declare their nationality when applying for registration. This applies to Japanese nationals too. Japanese nationals can confirm nationality with, for example, a copy of a resident record showing their registered domicile, and others with a copy of their passport or residence card, for example.

The Ministry of Justice says the purposes are to understand property ownership by non-Japanese nationals and to make inheritance procedures smoother when an owner dies (to determine which country’s law applies). The declared nationality is kept as internal information at the registry office and isn’t made public in the register. However, registration information including nationality is expected to be used for information sharing between government agencies.

(Reference: Ministry of Justice notice on handling registration affairs under the amended Real Property Registration Rules (Japanese, PDF))

Reporting when non-residents under the Foreign Exchange Act acquire property

Under the Foreign Exchange and Foreign Trade Act, a “non-resident” (someone who doesn’t live in Japan) may need to file a report after acquiring property in Japan. From April 1, 2026, acquiring property for residential or office use was added to the reporting requirements. If you live in Japan (a resident) and buy a home for yourself, this report doesn’t apply. However, under the Foreign Exchange Act, a non-Japanese national becomes a “resident” if they work at an office in Japan or if 6 months or more have passed since they entered Japan. If you’re buying a home soon after arriving, check whether you need to report.

(Reference: Ministry of Finance "Amendment to the Ministerial Ordinance on Reports of Foreign Exchange Transactions (February 20, 2026)" (Japanese) / Ministry of Finance "Interpretation and Operation of Foreign Exchange Laws and Regulations" (Japanese, PDF))

Notification in areas important to national security

Areas within roughly 1,000 meters of defense facilities and other important facilities, as well as border islands, may be designated “monitored areas” or “special monitored areas” under the Act on Important Land. A notification is required for contracts such as sales of land or buildings of 200 square meters or more (for buildings, the total floor area) in a special monitored area. Land and buildings in monitored areas aren’t subject to notification. You must notify before signing the contract, and both the seller and the buyer must notify. You can check whether a property is in a designated area on the Cabinet Office website.

(Reference: Cabinet Office "Act on Important Land" (Japanese) / Cabinet Office "Prior Notification" (Japanese))

The government has set up a study group on the rules for land acquisition by non-Japanese nationals and is reviewing those rules. Check the latest information before buying.

(Reference: Cabinet Secretariat "Office for Promoting an Orderly Society of Coexistence with Non-Japanese Nationals" (Japanese))

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2. Mortgage Conditions Depend on Your Residence Status

Some mortgages require non-Japanese applicants to have permanent residency. There are lenders that accept applications without permanent residency, but they come with conditions such as income and down payment requirements.

Examples with published conditions

(Reference: Japan Housing Finance Agency "Flat 35 Eligibility" (Japanese) / Docomo SMTB Net Bank "Web Application Course: Loan Conditions and Repayment" (Japanese) / SMBC Trust Bank "What are the main borrowing conditions for people of other nationalities?" (Japanese) / AEON Bank "AEON Bank Mortgage (Without Permanent Residency) Product Summary" (Japanese, PDF))

Note that SMBC Trust Bank (PRESTIA) is a separate company from Sumitomo Mitsui Banking Corporation. Conditions can change, so check each lender’s latest information before applying.

Flat 35 is for permanent and special permanent residents only

Flat 35, a long-term fixed-rate mortgage, requires non-Japanese applicants to have “permanent resident” or “special permanent resident” status. The agency warns that if it later turns out you didn’t have this status, you’ll have to repay the loan in full at once.

(Reference: Japan Housing Finance Agency "Flat 35 Eligibility" (Japanese))

Check with the lender about “residence status without work restrictions”

Whether you fall under AEON Bank’s “residence status without work restrictions” depends on your type of residence status. Check with the lender before applying whether your status qualifies.

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3. Options If You Don’t Have Permanent Residency

Without permanent residency, you can consider these options.

1. Choose a lender that accepts applicants without permanent residency: As in the table above, some lenders publish conditions such as income, down payment, and residence status
2. Prepare a larger down payment: Some lenders, like AEON Bank, require a down payment of at least a certain share of the property price (AEON Bank’s loan term is also 1 to 15 years)
3. Apply after getting permanent residency: Mortgages that require it, such as Flat 35, become available
4. Buy with cash: Without a mortgage, borrowing limits based on residence status don’t apply

Applying for permanent residency involves a fee. For changes to that fee, see PR Fee Up 10× to ¥300,000? Japan’s New Immigration Law and What It Means for Your Visa Costs (2026).

Visa & Legal PR Fee Up 10× to ¥300,000? Japan’s New Immigration Law and What It Means for Your Visa Costs (2026) Japan's amended Immigration Control Act passed on May 29, 2026. The legal cap for visa renewal fees rises to ¥100,000 an… Read related article

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4. What Lenders Check

Mortgage screening looks at things like income, length of employment, age, and health. Here are examples of conditions listed on official pages.

(Reference: SMBC Trust Bank "What are the main borrowing conditions for people of other nationalities?" (Japanese) / AEON Bank "AEON Bank Mortgage (Without Permanent Residency) Product Summary" (Japanese, PDF))

Group credit life insurance (danshin) pays off the remaining loan if the borrower dies, among other cases.

When you apply, you may be asked for your residence card, ID, proof of income (such as a withholding tax statement), and a resident record (juminhyo). For how to get a resident record, see How to Get a Juminhyo in Japan: Certificate of Residence.

Living in Japan How to Get a Juminhyo in Japan: Certificate of Residence Need a juminhyo in Japan? Compare the four ways to get one, what each costs, whether your residence status appears, and … Read related article

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5. Current Interest Rates

On September 18, 2026, the Bank of Japan raised its short-term policy rate (the uncollateralized overnight call rate) to around 1.25%.

(Reference: Bank of Japan "Change in the Guideline for Money Market Operations" (September 18, 2026, Japanese, PDF))

For Flat 35 (purchase type), a long-term fixed-rate mortgage, the rates applied in October 2026 were 3.830% a year for repayment periods of 21 to 35 years and 3.510% for 20 years or less (most common rates, for a loan-to-value ratio of 90% or less with the agency’s new group credit life insurance).

(Reference: Japan Housing Finance Agency "Flat 35 Interest Rates" (as of October 2026, Japanese))

Variable and fixed rates vary greatly by lender, product, and borrower. Rates can change monthly, so compare each lender’s latest rates. If you choose a variable rate, check how your payments would change if rates rise.

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6. The Buying Process in Six Steps

Step 1: Mortgage pre-screening

Getting mortgage pre-screening before you start looking at properties gives you an idea of how much you can borrow, which makes budgeting easier.

Step 2: Finding a property

Search for properties through real estate agents and property websites. If you’re not comfortable handling the process in Japanese, choose an agent that can work in English or other languages (see Section 8).

Step 3: Applying to buy

Once you’ve chosen a property, submit a purchase application to the seller.

Step 4: Sales contract and deposit

Sign a sales contract with the seller and pay a deposit (tetsukekin). If a real estate agent acts as the broker or seller, the agent gives you an “explanation of important matters” before signing. Ask about anything you don’t understand on the spot.

Under the Civil Code, until the other party begins performing the contract, the buyer can cancel by giving up the deposit, and the seller can cancel by actually tendering double the deposit. When a licensed real estate business is the seller, the deposit it can receive is capped at 20% of the price.

(Reference: e-Gov Laws "Civil Code" Article 557 (Japanese) / e-Gov Laws "Real Estate Brokerage Act" Articles 35 and 39 (Japanese))

Step 5: Final mortgage screening and loan contract

After signing the sales contract, you go through the lender’s final screening. If you pass, you sign the loan contract with the lender.

Step 6: Settlement, registration, and handover

You pay the remaining amount, register the transfer of ownership, and receive the property. You can ask a judicial scrivener to handle the registration. As explained in Section 1, from October 2026 you need to declare your nationality at registration.

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7. Taxes and Costs

Besides the property price, you’ll pay taxes and fees.

Upper limit on brokerage fees

The fee a real estate agent can charge for brokerage is capped by a public notice based on the law. For sales, the cap (before tax) is the total of 5% of the part of the price up to 2 million yen, 4% of the part over 2 million up to 4 million yen, and 3% of the part over 4 million yen.

Since July 1, 2024, there has been a special rule for brokering land and buildings priced at 8 million yen or less (“low-cost vacant homes and similar properties,” not limited to vacant homes). Agents can receive up to 1.1 times 300,000 yen (330,000 yen, including tax) from each of the seller and the buyer. Note that the 5%, 4%, and 3% above are before tax, while 330,000 yen includes tax. If you ask an agent to broker your purchase, you may also be charged this special-rule amount.

(Reference: Ministry of Land, Infrastructure, Transport and Tourism "Notice on Real Estate Transactions for Consumers" (Japanese))

Registration and license tax

This tax is paid when registering. The basis is, in principle, not the purchase price but the value on the fixed asset tax ledger. For the mortgage registration when you take out a loan, the basis is the loan amount.

If you buy a newly built home, the registration is a preservation of ownership rather than a transfer, and the rate is 0.15% (until March 31, 2027, conditions apply).

(Reference: National Tax Agency "No.7191 Registration and License Tax Rates" (Japanese))

Stamp duty

A stamp duty applies to the sales contract. Contracts made by March 31, 2027 get a reduction: 10,000 yen for contracts over 10 million up to 50 million yen, and 30,000 yen for contracts over 50 million up to 100 million yen.

(Reference: National Tax Agency "No.7108 Stamp Duty Reduction for Real Estate Transfer and Construction Contracts" (Japanese))

Real estate acquisition tax

This prefectural tax is paid when you acquire property. For homes, the rate is reduced from 4% to 3% until March 31, 2027. For newly built homes, 12 million yen is deducted from the tax base.

(Reference: Ministry of Land, Infrastructure, Transport and Tourism "Housing: Special Measures for Real Estate Acquisition Tax" (Japanese))

Other costs

You’ll also have costs such as the judicial scrivener’s fee, mortgage fees and guarantee fees, fire insurance, and moving. Amounts vary by provider and lender, so get quotes and include them in your budget.

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8. What to Check Before Buying

Earthquake resistance standards

The earthquake resistance standards in force from June 1, 1981 are called the “new earthquake resistance standards” and still apply today. When considering a used home, ask your agent whether the building was built to the new earthquake resistance standards.

(Reference: Minna Anshin Sumai Support Center "What does a home meeting the new earthquake resistance standards mean?" (an MLIT-subsidized program’s secretariat site, Japanese))

Condominium management rules

Condominiums have management rules that residents must follow. Under the Ministry of Land, Infrastructure, Transport and Tourism’s “Standard Condominium Management Rules,” renovations that may affect common areas or other units require an application to the board chair and written approval in advance. If you’re planning renovations, check the management rules before buying. It’s also a good idea to check the monthly management fee and repair reserve fund.

(Reference: Ministry of Land, Infrastructure, Transport and Tourism "Standard Condominium Management Rules (Single Building)" (2025 revision, Japanese, PDF))

Building inspection

When buying a used home, you can use a “building condition survey” (inspection), in which a trained inspector checks the condition of the building, such as deterioration. If the buyer requests the survey, the seller’s consent is required. Also, a building condition survey doesn’t guarantee that there are no defects. If you have concerns about a property, request a survey or ask your agent.

(Reference: Ministry of Land, Infrastructure, Transport and Tourism "Real Estate: Distribution of Existing Homes (Using Building Condition Surveys)" (Japanese) / Ministry of Land, Infrastructure, Transport and Tourism "For Safe Transactions of Existing (Used) Homes: A Guide to Using Building Condition Surveys" (Japanese, PDF))

Choosing an agent that works in English or other languages

If you’re not comfortable handling the process in Japanese, check these points when choosing an agent.

• Whether they handle sales brokerage in English or other languages (some only handle rentals)
• Whether they can explain the important matters statement and contract through interpretation or translation
• Whether they have experience with mortgage consultations for non-Japanese nationals
• Whether your contact person is a licensed real estate transaction specialist

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9. Buying a Vacant Home (Akiya)

In rural areas, using vacant homes (akiya) for relocation or as a place to live is another option. The “National Vacant House and Land Bank,” built with support from the Ministry of Land, Infrastructure, Transport and Tourism and run by two private companies (LIFULL and At Home), lets you search vacant home listings from local governments across Japan in one place.

(Reference: Ministry of Land, Infrastructure, Transport and Tourism "Construction and Real Estate: Vacant House and Land Bank Information Page" (Japanese))

As covered in Section 7, land and buildings priced at 8 million yen or less have a special brokerage fee rule, and buyers may also be charged up to 330,000 yen (including tax). Vacant homes may also need repairs or renovation, so think about the total including repair costs, not just the purchase price.

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10. The Mortgage Tax Deduction

If you buy a home with a mortgage and live in it, you can receive the “special deduction for housing loans” (mortgage tax deduction) if you meet certain requirements. 0.7% of your year-end loan balance is deducted from your income tax. There’s no nationality requirement.

For people who started living in the home in 2026, the deduction period and annual maximum are as follows.

(Reference: National Tax Agency "No.1211-1 Special Deduction for Housing Loans (New Homes, from 2022)" (Japanese) / National Tax Agency "No.1211-2 Special Deduction for Housing Loans (Homes Resold after Renovation by a Business, from 2022)" (Japanese) / National Tax Agency "No.1211-3 Special Deduction for Housing Loans (Used Homes, from 2022)" (Japanese))

For both new and used homes, the maximum may be higher for people such as those under 40 with a spouse, or those with dependents under 19. Main requirements include a floor area of, in principle, 50 square meters or more, and total income of 20 million yen or less in the year of the deduction.

New “other homes” that don’t meet energy-efficiency standards are, in principle, not eligible if you start living in them in 2024 or later. Check which type of home a property falls under before buying.

You need to file a tax return in the first year you claim the deduction. Even if you’re a company employee, you file the return yourself in the first year.

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11. Selling, or Leaving Japan

Selling the home you lived in

If you make a profit selling the home you lived in, a special rule lets you deduct up to 30 million yen from the gain (capital gain) regardless of how long you owned it, if you meet certain requirements. If you sell a home you previously lived in, you must sell it by December 31 of the year in which three years have passed since you stopped living there.

(Reference: National Tax Agency "No.3302 Special Rules When Selling Your Home" (Japanese))

Selling after leaving Japan

If you sell land or other property in Japan after leaving and becoming a non-resident, the buyer in principle withholds 10.21% income tax and special reconstruction income tax when paying you. However, an individual who buys for their own or a relative’s residence for 100 million yen or less doesn’t need to withhold.

(Reference: National Tax Agency "No.2879 When Buying Land from a Non-Resident" (Japanese))

Selling after leaving Japan, and the tax procedures involved, can be complicated. If you’re thinking of moving back home, consult a professional such as a tax accountant early.

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12. Common Mistakes

1. Choosing a property before checking residence status conditions: Some mortgages require permanent residency. Check which mortgages you can use before choosing a property
2. Not checking for a mortgage contingency clause: Always check the contract for whether you can cancel without penalty if you don’t pass final screening
3. Budgeting only for the property price: There are taxes, brokerage fees, registration costs, insurance, and more
4. Not checking eligibility for the mortgage tax deduction: New “other homes” are, in principle, not eligible if you move in from 2024
5. Not checking earthquake resistance standards: For used homes, check whether the building meets the new earthquake resistance standards

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FAQ

Q: Can I buy a home in Japan without Japanese citizenship?

A: Yes. Buying an ordinary home isn’t prohibited based on nationality. However, from October 2026 you declare your nationality at registration, and a notification may be required in areas important to national security.

Q: Can I get a mortgage without permanent residency?

A: Some lenders allow it. For example, SMBC Trust Bank (PRESTIA) accepts any residence status other than temporary visitor, but requires a previous year’s income of 10 million yen or more, among other conditions. AEON Bank has a mortgage for people without permanent residency, with conditions such as a residence status without work restrictions, a down payment of at least 20%, and a loan term of 1 to 15 years.

Q: Can I use Flat 35?

A: Non-Japanese applicants need “permanent resident” or “special permanent resident” status.

Q: What are mortgage interest rates like now?

A: In October 2026, Flat 35 (purchase type) was 3.830% a year for repayment periods of 21 to 35 years (most common rate, for a loan-to-value ratio of 90% or less with the agency’s new group credit life insurance). Variable rates and others vary by lender, so compare the latest rates.

Q: Can I get the mortgage tax deduction?

A: There’s no nationality requirement, so you can if you meet the requirements. The deduction period and maximum vary depending on the type of home and whether it’s new or used. You need to file a tax return in the first year.

Q: What happens to my home in Japan if I move back to my home country?

A: You can keep it or sell it. If you sell after leaving Japan, there are tax procedures such as withholding, so consult a professional.

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Key Takeaways

• ✅ Buying a home isn’t prohibited based on nationality. From October 2026, you declare your nationality at registration
• ✅ Mortgages depend on residence status. Flat 35 is only for permanent and special permanent residents. Without permanent residency, check lenders that publish their conditions
• ✅ Rates have risen. Flat 35 was 3.830% (21 to 35 years, loan-to-value of 90% or less with new group credit life insurance) in October 2026
• ✅ Check taxes and costs with the official calculation methods. Brokerage fees are capped, and registration tax is based on the fixed asset tax value and similar amounts, not the purchase price
• ✅ The mortgage tax deduction depends on the type of home. New “other homes” are, in principle, not eligible

Buying a home is a big decision. Check which mortgages fit your residence status first, and move forward while consulting lenders and professionals about anything you’re unsure of. For applying for a My Number Card and how it relates to your period of stay, see How to Get a My Number Card in Japan: Apply, Pick Up, Renew.

Visa & Legal How to Get a My Number Card in Japan: Apply, Pick Up, Renew Applying for a My Number Card in Japan? See the four ways to apply, photo rules, PIN setup, pickup steps, and the expira… Read related article