Japan Property Due Diligence for Foreign Buyers 2026: Address Check, FEFTA Reporting & Hazard Map Guide (不動産デューデリジェンス)

Japan Property Due Diligence for Foreign Buyers 2026: Address Check, FEFTA Reporting & Hazard Map Guide (不動産デューデリジェンス)

By Yamada · Chiba, Japan · May 2026

Buying property in Japan as a foreigner is legal, straightforward, and does not require a visa. Foreigners have the same property rights as Japanese citizens. But 2026 brings major changes to the reporting framework, and the due diligence process — which is largely the same as for Japanese buyers — has unique Japan-specific risks that surprise foreign buyers.

This guide is a complete, fact-dense reference for property due diligence in Japan as of 2026. Whether you are buying a Tokyo condo, a Kyoto townhouse, a rural akiya, or commercial property, the same checks apply.

Table of Contents

1. The Single Most Important Fact About Foreign Property Ownership in Japan

Foreign nationals have full property rights in Japan with no restrictions on nationality, residency, or visa status. You can buy land, a house, or a condo outright in your own name. Property ownership is freehold (you own the land, not lease it). This has been true for decades and remains unchanged in 2026.

You do NOT need:

• Japanese citizenship
• Permanent Residence visa
• A Japanese address (though many practical tasks require one)
• A Japanese partner or local company
• A "golden visa" — Japan has no investor visa for property

Property ownership does NOT grant residency. Buying a house in Japan does not give you the right to live in Japan. Visa and property are completely separate systems.

What's new in 2026: Reporting and disclosure requirements have expanded. These are about transparency, not restriction. Foreign buyers can still freely purchase Japanese property — they just need to file more paperwork.

2. April 2026 FEFTA Reporting Rule (NEW)

The Foreign Exchange and Foreign Trade Act (FEFTA, 外為法) was amended effective April 1, 2026.

The change: Previously, non-resident foreign buyers acquiring property for residential purposes were exempt from FEFTA reporting. As of April 2026, this exemption is removed. All non-resident property acquisitions must now be reported.

Specifically:

• Non-resident buyers must file Form 22 (a Bank of Japan reporting form) within 20 days of acquisition
• Applies to all property types: residential, commercial, land
• Filed via your Japanese bank or directly through the Ministry of Finance
• The form is officially titled "Report Pertaining to Article 55-3 of the Foreign Exchange and Foreign Trade Act"
• Required information: buyer's nationality, residency status, transaction amount, property details

Penalties for failing to report (or false reporting):

• Administrative fines
• Orders to restructure or cancel the transaction
• In serious cases: criminal penalties up to 3 years imprisonment or ¥1,000,000 fine

Historically, enforcement has been lenient, but the regulatory environment is tightening. Always file properly.

Source: Bank of Japan FEFTA guidance, MLIT December 2025 announcement.

3. Nationality Disclosure Requirement 2026 (NEW)

Separately from FEFTA, the Ministry of Justice introduced a new requirement effective fiscal year 2026: all property buyers must disclose their nationality during the registration of ownership transfer at the Legal Affairs Bureau (法務局).

Key facts:

• Applies to everyone, including Japanese nationals (not just foreigners)
• A copy of passport or residence card is submitted at registration
• The nationality data is retained as internal government data — it does NOT appear in public real estate registries (登記簿)
• This is a monitoring tool, not a restriction
• Source: Justice Minister Hiroshi Hiraguchi announcement, December 2025

For large-scale land transactions by foreign corporations, additional disclosures are required:

• Nationality of the corporation's representative
• Nationality of majority shareholders or executives (if same nationality)

This applies to large land acquisitions, not standard residential purchases.

4. The 4 Pillars of Japan Property Due Diligence

Every Japanese property purchase should rest on four due diligence pillars:

You should complete all four pillars before signing a sales contract. Skipping any of them is the most common source of buyer regret in Japan.

5. Pillar 1: Registry Check (Touki / 登記簿)

The Touki (登記簿, tōki-bo) is the official legal record of every parcel of land and every building in Japan. It is maintained by the Ministry of Justice and accessible to anyone.

What the Touki shows:

• Current legal owner (name and address)
• Previous owners (history)
• Property boundaries and size
• Building structure, year built, floor area
• Mortgages and liens (抵当権)
• Easements and restrictions
• Co-owners (if any)

How to get a Touki extract:

What to check on a Touki extract:

• Does the seller's name match the current owner? If not, the seller cannot legally sell.
• Are there mortgages or liens? If yes, they must be discharged at closing.
• Is the building area in the Touki the same as in the listing? Discrepancies are a red flag.
• Is there any co-ownership (共有)? Multiple owners must all consent to sell.

Pro tip: Many free English-language tools wrap the address into a quick property check. The free [Japan Property Due Diligence Report at yamada-tools.jp](https://yamada-tools.jp/en/realestate/property-report) is one such tool that lets you check an address and see initial public information in English without paying for the Touki extract.

For the actual contract, you still need the official ¥600 Touki extract — but free tools are good for initial screening.

6. Pillar 2: Zoning and Land Use (用途地域)

Japan has strict zoning laws (用途地域, yōto chiiki) that control what can be built on every parcel of land. Before buying, you must verify the zoning matches your intended use.

12 main zoning categories:

Building Coverage Ratio (建蔽率, kenpei-ritsu) and Floor Area Ratio (容積率, yōseki-ritsu) further restrict what you can build on each lot. For example, a 100 sqm lot with a 60% kenpei-ritsu allows a maximum building footprint of 60 sqm.

How to check zoning:

• City planning office (都市計画課) at city hall — free, in person
• Many cities have online GIS maps (search "用途地域 [city name]")
• The Important Matters Disclosure (Pillar 4) will state the zoning

Red flag: A property in a low-rise residential zone (1 or 2) where the seller claims you can build a 5-story apartment building — this is impossible under zoning law.

7. Pillar 3: Hazard Maps (Flood, Earthquake, Landslide, Liquefaction)

Japan is one of the most disaster-prone countries in the world. Every property purchase should include a hazard map check.

4 main hazard types in Japan:

Where to check hazard maps:

• National hazard map portal (Japanese only): https://disaportal.gsi.go.jp/
• MLIT (Ministry of Land, Infrastructure, Transport and Tourism) flood maps
• Local city hall for the most detailed local hazard maps
• The Important Matters Disclosure must state if the property is in a hazard zone

Critical: Landslide zones have two levels:

• Yellow zone (土砂災害警戒区域, Caution Zone) — Warning. Disclosure required at sale.
• Red zone (土砂災害特別警戒区域, Special Caution Zone) — Severe. Building restrictions apply. Lenders may refuse mortgage.

Pro tip: Hazard risk does not always mean "don't buy." Many livable areas of Japan have some hazard exposure. The point is to know the risk before purchase so you can:

• Negotiate the price
• Plan insurance (flood, earthquake riders)
• Make informed renovation choices (foundation reinforcement, elevated floors)

8. Pillar 4: Important Matters Disclosure (重要事項説明書)

The Jūyō Jikō Setsumeisho (重要事項説明書, "Important Matters Disclosure") is the most important legal document in any Japanese property transaction. It is required by the Real Estate Brokerage Act (宅地建物取引業法) and must be explained verbally by a licensed real estate transaction specialist (宅地建物取引士) before you sign the sales contract.

What it covers:

• Address, lot number, building area
• Discrepancies between registry and reality

• Zoning
• Building coverage ratio
• Floor area ratio
• Road access (接道)
• Setback requirements

• Water supply (city water vs well)
• Sewer vs septic tank (浄化槽)
• Gas (city gas vs propane)
• Electricity

• Flood, landslide, liquefaction, tsunami zones
• Earthquake zone classification

• Year built
• Renovations
• Earthquake compliance (耐震基準)

• Suicide, murder, or natural death in the property
• Fires, structural damage

• Management fees
• Repair fund balance
• HOA rules

Red flags in the Jūyō Jikō:

• "Building area differs from registry" — possible boundary or measurement issue
• "Property cannot be rebuilt under current laws" — the dreaded non-rebuildable property
• Vague disclosure language on stigmatization
• Hazard zone designation that wasn't disclosed earlier

You have the right to ask questions about anything in the Jūyō Jikō. If something is unclear, do not sign. A reputable agent will explain everything thoroughly.

9. The Non-Rebuildable Property Trap (再建築不可)

A "non-rebuildable property" (再建築不可物件, sai-kenchiku-fuka bukken) is a property where the current building can be repaired but cannot be rebuilt if it is demolished or destroyed.

Cause: Modern Japanese building laws (Building Standards Act, 建築基準法) require every building lot to have at least 2 meters of frontage on a public road (接道義務). Many old properties — especially akiya in rural areas — do not meet this requirement because their only access is via a footpath, private lane, or a road narrower than the modern standard.

Why this matters:

• The current house can stay and be repaired
• If it burns down, falls in an earthquake, or is demolished — you cannot legally build a new house on the lot
• Your property essentially loses 70-90% of its value when the existing building goes
• Mortgages on non-rebuildable properties are difficult or impossible to get
• Insurance is more expensive

How to check:

• The Jūyō Jikō must disclose this
• Listing terms to watch for: 「接道なし」, 「再建築不可」, 「2項道路に接道」
• Check the road in front of the property — measure its width

Pro tip: Non-rebuildable properties are sometimes listed at very low prices specifically because of this restriction. They can be reasonable purchases if (a) the building is in good shape, (b) you plan to use it as-is for the long term, and (c) you accept the resale risk. But you must know what you're buying.

10. Akiya: Special Due Diligence Notes

Akiya (空き家) are abandoned or vacant houses, common in rural Japan. They are often listed at extremely low prices (sometimes free) but come with significant due diligence challenges.

Key akiya risks:

Before buying an akiya:

• Get a Touki extract
• Get a structural inspection (¥80,000-¥200,000)
• Check all heirs have signed off
• Confirm road access and rebuildability
• Visit the town hall to understand any local restrictions or incentives (some towns offer renovation subsidies up to ¥3,000,000)

Many regions actively welcome new residents and offer akiya bank (空き家バンク) listings with vetted, lower-risk properties.

11. Boundary Disputes and Survey Issues

Japan's old land registry system was created in the Meiji era. Many rural and older urban lots have boundaries that don't match modern measurements.

Common issues:

• Boundary stones (境界石) missing or moved
• Neighbor's fence is 30cm onto your land
• The lot you're buying is 3sqm smaller than the listing says
• Multiple owners share a boundary that hasn't been formally surveyed

Two types of survey:

• Genkyō sokuryō (現況測量) — current state survey, ~¥150,000-¥300,000
• Kakutei sokuryō (確定測量) — boundary-fixed survey with neighbors' consent, ~¥500,000-¥1,500,000

For most condo or urban apartment purchases, this is not an issue. For land or rural houses, always confirm whether a recent kakutei sokuryō exists. If not, factor the survey cost into your budget.

12. Septic vs Sewer, Wells vs City Water

In urban Japan, you have city water (水道) and city sewer (下水道). In rural Japan, you may have:

• Well water (井戸水) — annual maintenance, water quality testing
• Septic tank (浄化槽) — periodic emptying ¥30,000-¥50,000/year, replacement every 20-30 years
• Cesspool — outdated, requires costly upgrade to modern septic

Cost implications:

• Connecting an existing house to city sewer can cost ¥500,000-¥2,000,000 if the municipal sewer line exists nearby
• If no sewer line nearby, you must use septic indefinitely
• Wells require pump replacement every 10-15 years (¥200,000-¥500,000)

The Jūyō Jikō must disclose all of this. Read carefully.

13. Stigmatized Property Disclosure (告知事項)

Japanese real estate law requires disclosure of certain past events that may stigmatize a property — "incidents" (事故物件) or "stigmatized property."

Required disclosures:

• Suicide on the property
• Murder or violent death
• Major fires
• Significant structural damage

Disclosure period guidelines (per MLIT 2021 guidelines):

• For sale: Generally no time limit on disclosure of major incidents
• For rental: Approximately 3 years from the incident (less if the property has been re-rented since)
• Natural deaths (peaceful death of an elderly resident, etc.) generally do not require disclosure

Pro tip: If the listing price is significantly below comparable properties (~30%+), ask explicitly whether there are any 告知事項 (kokuchi jikō, disclosed matters). Some agents will only mention these if asked directly.

There are dedicated Japanese websites (e.g., Oshima Teru) that track reported incident properties, but coverage is incomplete.

14. 2026 Tax Obligations for Foreign Owners

If you own Japanese property as a non-resident, you have ongoing tax obligations.

Annual taxes:

• Fixed Asset Tax (固定資産税) — approximately 1.4% of assessed value, annual
• City Planning Tax (都市計画税) — 0.3% of assessed value (urban areas only)
• Income tax on rental income — if you rent the property out

Capital gains on sale:

• Hold 5+ years: 15.315% national tax + 5% residence tax (long-term)
• Sell within 5 years: 30.63% national tax + 9% residence tax (short-term)
• The 5-year clock runs from January 1 of the year you acquired to January 1 of the year you sell

Withholding on sale by non-resident:

• When a buyer purchases property from a non-resident seller, the buyer must withhold 10.21% of the sale price as prepaid income tax
• Exemption: individual buyer purchasing for personal residence at ¥100M or less

Tax agent requirement:

• Non-resident owners must appoint a Japanese tax agent (納税管理人) to handle annual tax matters

This adds an annual cost (¥30,000-¥100,000) and a logistical step to ownership.

15. FAQ

Q1: Can foreigners buy property in Japan without a visa?

Yes. Japan places no nationality, residency, or visa restrictions on property ownership. You can buy property as a tourist with no plan to live in Japan.

Q2: Does buying property in Japan give me a visa?

No. Property ownership and visa status are completely separate in Japan. There is no investor visa or "golden visa" for property purchase.

Q3: What changed about foreign property buying in April 2026?

Two things: (1) Non-resident foreign buyers must now file FEFTA Form 22 within 20 days of purchase, even for residential property (the residential exemption was removed). (2) All buyers, including Japanese, must disclose nationality at registration. Neither is a restriction — both are monitoring requirements.

Q4: How do I check a Japanese property by address?

Free tools like [Japan Property Due Diligence Report at yamada-tools.jp](https://yamada-tools.jp/en/realestate/property-report) let you enter an address and see initial public information. For the legal contract, you need the official Touki extract (¥600) from touki-kyoutaku-online.moj.go.jp.

Q5: What is a non-rebuildable property?

A property where the building can be repaired but cannot be rebuilt if demolished — typically because the lot fails modern road-access requirements (less than 2m frontage on a public road). Common in akiya. You can use it as-is, but resale value is severely limited.

Q6: Are flood and earthquake risks disclosed before sale?

Yes. The Important Matters Disclosure (重要事項説明書) must state whether the property is in any designated hazard zone. You can also check the national hazard portal at disaportal.gsi.go.jp for free.

Q7: Is there an MLS-style listings database in Japan?

There is a closed industry database called REINS (Real Estate Information Network System), but it is only accessible to licensed agents. Buyers see properties via SUUMO, athome, HOMES, and individual agency websites. Some platforms (e.g., Real Estate Japan, ManekiHomes, Akiya Mart) cater to English speakers.

Q8: Can I use a Japanese mortgage as a foreign buyer?

Possibly. Japanese banks generally require: permanent residency (永住権) OR a long-term spouse visa, stable employment in Japan, and Japanese-language documents. Non-residents typically cannot get a Japanese mortgage from a domestic bank. Some Singapore-based or Hong Kong-based banks do cross-border lending on Japanese property.

Q9: What is FEFTA Form 22?

The Bank of Japan reporting form required for non-resident property acquisitions. Filed within 20 days of purchase, it discloses the buyer's nationality, residency, transaction amount, and property details. From April 2026, residential purchases no longer exempt.

Q10: Do I need a Japanese tax agent?

If you own property in Japan but live overseas, yes — non-resident owners must appoint a tax agent (納税管理人) to handle fixed asset tax and city planning tax. Cost ¥30,000-¥100,000/year depending on services.

Q11: What is an akiya bank?

A municipal listing service for vacant rural properties. Towns curate the listings, often vet the properties, and may include local renovation subsidies. Generally a lower-risk way to buy an akiya compared to private listings.

Q12: Can foreigners buy in monitored zones near defense facilities?

Yes, but with extra disclosure. The Important Land Use Regulation Act (2022) created "Monitoring Zones" and "Special Monitoring Zones" within roughly 1km of defense facilities, Coast Guard, border islands, airports, power plants, etc. In Special Monitoring Zones, purchases of 200+ sqm require notification before signing. Failing to notify or filing false information can lead to administrative orders and criminal penalties.

Q13: Are there any provinces or regions where foreigners cannot buy?

No. As of May 2026, there are no nationwide restrictions on foreign property ownership in any region. However, the ruling coalition has indicated that a "Bill to Strengthen Regulations on Land Acquisition by Foreigners and Foreign Capital" may be submitted in the 2026 Diet session. Possible directions include restricting ownership within 1km of sensitive facilities. As of May 2026, no such bill has passed.

Q14: What's the typical brokerage fee?

Capped by law at 3% + ¥60,000 + consumption tax, paid by both buyer and seller separately. Total brokerage cost in a transaction is typically around 6% split between the two sides.

Q15: How do I file FEFTA Form 22 in practice?

The form is filed via your Japanese bank (for the funds transfer reporting) and/or directly through the Ministry of Finance via the Bank of Japan online portal. Your real estate agent and the judicial scrivener (司法書士) handling registration will typically guide you through this.

16. Official Sources and References

• Ministry of Justice — Real Estate Registry (Touki): https://www.touki-kyoutaku-online.moj.go.jp/
• MLIT (Ministry of Land, Infrastructure, Transport and Tourism): https://www.mlit.go.jp/
• National hazard map portal: https://disaportal.gsi.go.jp/
• Bank of Japan (FEFTA reporting): https://www.boj.or.jp/
• National Consumer Affairs Center: https://www.kokusen.go.jp/
• Free address-based property check (English): [Japan Property Due Diligence Report at yamada-tools.jp](https://yamada-tools.jp/en/realestate/property-report)

Related EasyNihon Tools

• UR Housing Navigator — rent guaranteed UR Toshi properties (no key money, no guarantor)
• Moving Calculator — total cost of moving in Japan
• Visa Fee Calculator 2026 — for foreign buyers needing visa renewals
• Rent Negotiator — for those renting instead of buying

Final note:

Japan's property market is genuinely open to foreign buyers — more open than most Western buyers expect. The legal system is reliable. Title is clear. The yen offers a relatively stable currency. The constraint is information asymmetry: most property information exists only in Japanese, and the due diligence rituals (Jūyō Jikō, hazard maps, Touki) are unfamiliar to overseas buyers.

This guide and the free tools mentioned should give you the foundation for proper due diligence. For specific transactions, engage a Japanese-licensed real estate agent (宅建士) and a judicial scrivener (司法書士) who specialize in foreign clients.

— Yamada