
Buying Property as an Offshore Buyer
Table of Contents
Buying a Property as an Offshore Buyer
Buying a property in Japan as a non-resident (非居住者 He-kyo-jusha) can present a few challenges. Having to make a few trips to Japan is one challenge, but the biggest challenge can be making an international money transfer which can take time and delays can affect the timing of settlement. Not only can it result in you not being able to meet your settlement deadline, but it can also make it difficult for payment and ownership title transfer to occur simultaneously or in close succession, as is generally advised.
Simultaneous payment and title transfer offers benefits and protections for both parties involved in the transaction, since you can obtain ownership title immediately once your payment is made, and the seller is able to transfer their ownership title as soon as your payment is received in full. Normally, you would not like any interruptions between payment and title transfer as that may potentially put you at some risk.
One way to avoid this is by entrusting a legal professional, your real estate agent, or your acquaintance in Japan to make payments for you to ensure a simultaneous payment and title transfer. But if you choose to make the payment yourself, one option is to negotiate with the seller to keep their title deed with a judicial scrivener (referred to as lawyer, escrow, etc., in other countries) approved by both parties. This will ensure the ownership title will not be transferred while your money is being transferred from overseas. Please note that not all sellers will be willing to accept such special arrangements when selling to a non-resident. If this is the case, you should consider entrusting someone to make the payment for you.
Buying Flowchart
Decide whether to take on the buying process yourself or entrust someone to represent you
Decide if you wish to delegate all or part of the powers related to the purchase to a legal professional.
Sort out your funding
Find out how much your various purchase fees will cost and decide how much you want to spend.
Initiate your property search
Contact an agent and initiate your property search.
Make an offer
Submit your letter of intent (購入申込書 Ko-new-mowshi-komi-sho) when you have found the right property
Prepare an affidavit for the property purchase
To prepare for your property purchase, obtain an affidavit (宣誓供述書 Sensei-kyo-jutsu-sho) from a notary public in your home country, or if you currently live abroad, then have it certified at the embassy.
If you entrust someone to sign the contract and give that person other related powers for your purchase, then the attorney-in-fact should be in possession of both the power of attorney (委任状 E-nin-jo) and affidavit.
Receive an Explanation of Important Matters, sign the sales contract, and pay the deposit
Prior to signing the sales contract, receive the Explanation of Important Matters (重要事項説明書 Jyu-yo-jiko-setsumei-sho) from a licensed broker. Once the contract is signed, you will simultaneously pay the seller the deposit (手付金 Tetsu-kay-kin). The deposit amount is capped at 10% of the purchase price, but any amount more than 5% could be accepted at a high chance.
If you cannot come to Japan, a round-robin contract (持ち回り契約 Mochi-mawari-keiyaku) signing can possibly be arranged if the seller agrees to such an arrangement, or you can always delegate a legal professional to sign on behalf of you and simultaneously pay the deposit. If you are signing yourself remotely then in most cases you will be expected to make an international transfer for your deposit in advance by the seller’s planned signing date.
Settle the outstanding balance of the purchase price and all other fees which are due, and submit your affidavit to the judicial scrivener
Submit your affidavit to the judicial scrivener (司法書士 Shihosho-shi) who is delegated to transfer the ownership title, or send it in advance of the closing date if you will not attend the closing. Settle the outstanding balance of the sales price and split fees (清算金 Sei-san-kin) with the seller reckoned on the closing day, such as property taxes and monthly apartment fees. You will also need to pay all other related closing fees which are due at the same time.
Receive the delivery
Receive the keys
Execute ownership title transfer
Immediately after the payment and delivery, an entrusted judicial scrivener with the necessary documents from both parties will go to the Legal Affairs Bureau to legally transfer the property ownership title.
Pay any acquisition fee that may arise post-sale
Acquisition tax (不動産取得税 "Fudosan-shoe-toku-zei") will be imposed on you, if there is any, by the local tax office within 1 – 3 months after purchase. Appoint a tax representative (納税管理人"No-zei-kanri-nin") in Japan to help you pay the acquisition tax if it arises.

Various costs
Various costs (4 - 7% of sales price, excluding "post-sale fees" and "fees incurred yearly")
When signing the contract
・ Deposit (手付金 Tetsu-kay-kin) up to 10% of the sales price)
・ Stamp duty (収入印紙 Shu-new-inshi) for sales contract (corresponds to the sales price)
When settling the outstanding balance of sales price (closing)
・ Ownership title transfer registration tax
・ Building description registration and ownership preservation tax (for new building purchase)
・ Agency fee {( Sales price×3%) + 60,000Yen} + consumption tax
・ Judicial scrivener fee
・ Pro-rated annual property tax of the year of sale
・ Pro-rated monthly apartment fee of the month of sale (apartments only)
・ Housing insurance premium (your choice of 1 to 5-year term, with or without earthquake coverage)
Post-sale
・ Property acquistion fee (不動産取得税 Fudosan-shoe-toku-zei) imposed 1 - 3 months after closing
Fees Incurred Yearly
・ Fixed asset tax towards land and building
・ City planning tax towards land and building

Necessary Items
Necessary Items for Buying
・ Affidavit (宣誓供述書 Sensei-kyo-jutsu-sho) 1*
・ Power of attorney (委任状 E-nin-jo) *when entrusting someone with powers related to buying 2*
・ ID (residence card, passport, or other photo ID) 3*
When Will You Need It
1* upon sales contract signing and closing
2* upon sales contract signing and closing
3* upon sales contract and closing



