2018-08-14
Purchasing Property Procedure in Japan
- Advice
Finding property by yourself in Japan can be a big challenge, especially if you are not currently residing in Japan. However, there are many sites online that you can use to begin your search for the perfect property. You can use our sekaiproperty website to browse available property as well as learn useful information about living in and moving to Japan.
If you cannot find property on your own, you can share with us your desired property criteria and features to our company and enter into an intermediary agreement. For the details for an intermediary agreement, please refer to “Thee Intermediary Agreement You Should Know”
Step 1: Find a Real Estate Company
Because you can only get information through the internet if you are not in Japan, it is difficult for you to know the reliability of real estate companies. To assure that the company has your best interest in mind, you should contact them directly and ask for details about their services. Be sure that the company is trustworthy enough and have translated versions of the contract. Our company, BEYOND BORDERS, offers such services in English, Chinese, and Japanese in order to find the best property for you. The following companies also have branches abroad.
Tokyu Livable (東急リバブル)：Shanghai, Taipei, Hong Kong, Singapore
Sumitomo Reality & Development Co., Ltd. (住友不動産株式会社): Hong Kong, Bangkok, Los Angeles, Sydney
Landnet Co., Ltd. （株式会社ランドネット）: Taipei, Hong Kong
Step 2: Visit the property you want to buy in Japan
It is important to visit and actually see the property in Japan to know whether it is worthy to buy or not. If you liked the property, submit a purchase certification and make a contract with the seller. But before you sign an agreement, make sure that you understand and agree on the contents of the contract. If you have any questions, feel free to ask the vender.
Step 3: Prepare documents and money that is required to purchase a property
・Affidavit: includes name, address, birthday, and sex. Some countries’ embassies are responsible for making one on your behalf
・Passport: You need passport to register your property
・Name Stamp (印鑑): Name Stamp is like a signature to confirm that your identity. If you don’t have one, you can make one in Japan.
After preparing these documents, send money to purchase the property and convert the monetary amount into Japanese Yen. For due taxes on your newly-purchased property, please refer to the article, “How many kinds of tax you have to pay for purchasing a property?” Ensure that you also have to pay a commission fee, insurance, and payment for hiring a judicial scrivener. Usually, these fees amount to approximately 8% of the property price.
Send money from your home country
Foreigners who do not have a bank account in Japan must send money from their home country. Usually real estate companies will let you transfer money into their accounts, which affirms the importance of choosing a trustworthy company. Be sure to obtain a money transfer request bill and a foreign currency exchange calculation report. After the payment, get a deed of the property.
Report the acquisition of the property
If you live abroad, you will need to nominate a tax manager who pay the tax on your behalf. In that case, you need to register the person to the tax office. You also can choose a judicial scrivener as a tax manager. After acquiring the property, report the transaction to Ministry of Finance via Bank of Japan within twenty days.
Find a management company
If you invest in a property and want to rent it out, you need to find a management company to perform tasks such as finding a tenant, resolving conflicts with residents, guaranteeing the occupancy of room, and others. The price for the management company is usually 6% of the property price.You may prefer that your management company handles the tenant’s payments should you not have a bank account in Japan.
The following are two management companies suggested for foreigners:
・Global Trust Networks
・Landnet
Moreover, you must file an income tax report every year if you purchased a profitable property. By calculating a total amount of tax you have to pay, you can get tax refund. You can file an income tax report by yourself, but a judicial scrivener or a certified public tax accountant provides this service for your convenience.
If you have any questions about the procedure of purchasing Japanese property, please feel free to contact us!