📘 Foreign Buyer's Handbook

Kansai Edition 2024-2025

Your essential guide to buying property in Osaka, Kyoto, and beyond

Navigate Japan's real estate market with confidence. This comprehensive guide covers everything from legal requirements to cultural considerations for international property buyers in the Kansai region.

Introduction to Kansai Real Estate

The Kansai region, encompassing Kyoto, Osaka, and Nara, offers unique opportunities for foreign real estate investors. With its rich cultural heritage, strong economic foundation, and growing international appeal, the region presents compelling investment prospects for overseas buyers.

This guide provides essential information for navigating Japan's complex property market, understanding legal requirements, and making informed investment decisions in one of Asia's most culturally significant regions.

Popular Neighborhoods

Kyoto

  • • Gion District - Traditional charm
  • • Arashiyama - Bamboo forests
  • • Fushimi - Sake brewing area
  • • Nishiki Market - Food culture

Osaka

  • • Umeda - Business district
  • • Namba - Entertainment hub
  • • Sumiyoshi - Residential area
  • • Tennoji - Cultural district

Nara

  • • Todaiji Temple area - Historic
  • • Yamato-Takada - Residential
  • • Kofukuji area - Spiritual
  • • Mountain districts - Nature

Financing Options

Japanese Bank Loans

  • • Typically 20-35% down payment
  • • Interest rates: 0.5-2.5%
  • • Loan terms: 15-35 years
  • • Permanent residency often required

International Financing

  • • Home country mortgage options
  • • International private banking
  • • Cash purchases (most common)
  • • Investment fund structures

Property Types in Japan

Mansion (マンション)

Concrete apartments/condominiums, typically in buildings with multiple units. Most popular for foreign buyers.

Ikkodate (一戸建て)

Detached single-family homes, often with small gardens. Popular in suburban areas.

Machiya (町家)

Traditional wooden townhouses, especially in Kyoto. Often require renovation but high cultural value.

The Buying Process

1

Property Search

Work with a bilingual real estate agent familiar with foreign buyer needs.

2

Make an Offer

Submit purchase application (買付証明書) with proposed terms.

3

Due Diligence

Property inspection, legal checks, and contract review.

4

Contract & Payment

Sign sales contract, pay deposit (10%), arrange financing.

5

Settlement

Final payment, property transfer, and registration.

Taxes & Fees

Purchase Costs (One-time)

  • • Acquisition tax: 3-4% of property value
  • • Registration & license tax: ~2%
  • • Agent commission: 3% + ¥60,000 + tax
  • • Judicial scrivener fees: ¥100,000-300,000
  • • Total: Approximately 7-10% of purchase price

Ongoing Costs (Annual)

  • • Fixed asset tax: 1.4% of assessed value
  • • City planning tax: 0.3% (urban areas)
  • • Management fees (condos): ¥15,000-40,000/month
  • • Repair fund (condos): ¥10,000-20,000/month

Cultural Considerations

Communication Style

Japanese business culture values indirect communication and consensus-building. Be patient with decision-making processes.

Neighborhood Relations

Maintaining good relationships with neighbors is crucial. Consider joining local community associations.

Property Maintenance

Japanese standards for property upkeep are very high. Regular maintenance is expected and appreciated.

Language Barrier

Work with bilingual professionals for all legal and financial matters to ensure clear understanding.

Resources & Professional Support

Essential Resources

  • • Japan Real Estate Institute (JREI) - Market data and valuations
  • • Ministry of Land, Infrastructure, Transport and Tourism - Regulations
  • • Japan Property Central - English language property news
  • • JETRO (Japan External Trade Organization) - Investment support

Contact Our Experts

Ready to start your property search in Kansai? Our team of bilingual experts is here to guide you through every step of the process.