Guide for buyers living in Japan
Buying property abroad from Japan
Rules last checked 30 October 2026 · 11 official sources · Education, not financial, tax, legal or immigration advice.
What a buyer living in Japan meets before and after buying a home abroad: sending the money out, tax at home on the rent and the sale, and the forms to file.
The three things to know
- Sending money abroad
Japan treats remittances abroad as free unless a permission applies, and a bank remittance above JPY 30 million is reported afterwards to the Bank of Japan, including a payment for real estate abroad.
- Tax at home
A resident of Japan other than a non permanent resident is taxed on worldwide income, so rent and gains from a home abroad are taxable with a foreign tax credit, and a gain is taxed at 15 percent or 30 percent income tax plus inhabitant tax depending on whether the home was held more than 5 years. Foreign rental losses linked to depreciation on a used building cannot be offset against other income.
- Reporting at home
A resident whose foreign assets exceed JPY 50 million at 31 December files the Report of Foreign Assets by 30 June of the next year, and foreign rent and gains also go in the annual income tax return.
Sending money abroad
No restriction found
- Rule
Remittances abroad and exchange of yen for foreign currency are free under the Foreign Exchange and Foreign Trade Act unless they fall under the payments and transactions that need a permission (articles 16 and 21).
A report
- Rule
A remittance from a bank in Japan to a bank abroad above JPY 30 million equivalent is reported after the event under article 55 of the Act on the payment report form; a payment to buy or sell real estate abroad takes Balance of Payments item number 874, and the report is filed at the time of the remittance from Japan, not again when a local agent pays the seller.
- Limit
30,000,000 JPY per per payment
A report
- Rule
A resident who holds deposits with non residents above JPY 100 million equivalent at the end of a month reports the balance.
- Limit
100,000,000 JPY per month end balance
No restriction found
- Rule
In the Bank of Japan table of reporters, the transaction report for acquiring real estate is assigned to non residents, so no transaction report for a resident's purchase of real estate abroad is listed; the payment report above still applies.
For buying a home abroad
- Rule
The Bank of Japan answers a question about buying real estate abroad through a local lawyer or an own account abroad: the payment report is filed when the money leaves a bank in Japan.
Tax at home
A resident is a person with a domicile in Japan or a residence there continuously for one year or more; a non permanent resident is a resident without Japanese nationality who had a domicile or residence in Japan for 5 years or less in the previous 10 years, and is taxed on foreign source income only to the extent paid in Japan or remitted to Japan. A temporary absence is presumed when a spouse or relatives stay in the household in Japan, a home or hotel room is kept for return, or daily belongings stay in Japan.
Rent from a home abroad
- Rule
- A resident other than a non permanent resident is taxed on worldwide income, so rent from a home abroad is real estate income taxed together with the resident's other income.
- Foreign income tax can be deducted from Japanese income tax up to a limit equal to the income tax multiplied by the share of foreign source income in total income, with excess carried forward 3 years.
- For a used building abroad, the part of a rental loss equal to depreciation on the simplified useful life is treated as not arising from 2021, so it cannot be offset against other income.
Gain on selling a home abroad
- Rule
A resident's gain on selling real estate abroad is taxed in Japan like a gain on real estate in Japan, with separate taxation: 15 percent income tax and 5 percent inhabitant tax if the owner held it more than 5 years at 1 January of the year of sale, and 30 percent and 9 percent if 5 years or less, plus 2.1 percent reconstruction tax on the income tax amount through 2037. Foreign income tax on the gain can be credited.
Relief for tax paid abroad
- Rule
Japan relieves double tax by a foreign tax credit, with a 3 year carry forward of unused limit and excess tax. As of 1 October 2026 the Ministry of Finance lists 91 conventions applicable to 157 jurisdictions, of which 78 tax conventions apply to 81 jurisdictions and 11 are information exchange agreements.
Reporting at home
Report of Foreign Assets (国外財産調書)
- Who
Residents other than non permanent residents whose foreign assets, including real estate abroad, total more than JPY 50 million at 31 December
- Threshold
More than JPY 50 million total value at 31 December, gross of loans
- Deadline
30 June of the following year for assets from 2023 (15 March for 2022 and earlier)
- Covers a foreign home
Yes
Final income tax return with foreign rent and gain
- Who
Residents with foreign rental income or a foreign real estate gain
- Threshold
None stated for this item
- Deadline
Filed in the following year; the exact date is set each year
- Covers a foreign home
Yes
Payment report (支払又は支払の受領に関する報告書)
- Who
Residents who remit more than JPY 30 million equivalent abroad through a bank
- Threshold
More than JPY 30 million per payment
- Deadline
After the event; the period depends on the form type
- Covers a foreign home
No
Report on the balance of deposits abroad
- Who
Residents holding deposits with non residents
- Threshold
More than JPY 100 million equivalent at month end
- Deadline
Set by the form
- Covers a foreign home
only through accounts or entities
Where to look
Choose a country to see what its rules say for a buyer with a Japan passport living in Japan.
Check a country for a passport
Australia
Depends on the propertyPassport: Japan. Buyer lives outside Australia. Reading for a home.
Different property types carry different readings. The country guide lists each one.
Australia requires a foreign person to obtain foreign investment approval before buying residential land, and from 1 April 2025 to 30 June 2029 buying an established dwelling is generally banned, while vacant land and new dwellings stay open with approval. Australian citizens, permanent residents and eligible New Zealand citizens are not caught.
Rules last checked 29 October 2026
Questions people ask
What if a resident of Japan owns foreign assets worth more than JPY 50 million, including a home abroad?
The owner files a Report of Foreign Assets with the tax office by 30 June of the next year for assets held at 31 December. The test uses the gross value, so loans do not reduce it, and non permanent residents are outside the duty.
What if the home abroad is let at a loss?
For a used building abroad, the part of the loss equal to depreciation on the simplified useful life is treated as not arising from 2021. It cannot be set against other real estate income or other income.
What if the home abroad is sold after 6 years?
The gain is taxed like a gain on real estate in Japan: 15 percent income tax and 5 percent inhabitant tax when the home was held more than 5 years at 1 January of the year of sale, plus 2.1 percent reconstruction tax on the income tax amount. A foreign income tax credit can apply.
What if the foreign country also taxes the rent?
Foreign income tax can be deducted from Japanese income tax up to a limit based on the share of foreign source income in total income. Excess tax and unused limit carry over for 3 years.
What if the money sent abroad is above JPY 30 million?
A bank remittance above JPY 30 million equivalent is reported to the Bank of Japan after the event, with Balance of Payments item number 874 for the price of real estate abroad. The report is not needed again when a local agent later pays the seller.
What if a foreign national lives in Japan for less than 5 years?
A non permanent resident is taxed on foreign source income only when it is paid in Japan or remitted to Japan, and is outside the Report of Foreign Assets.
What if someone works abroad for a year but keeps family in Japan?
A temporary absence is presumed when a spouse or relatives stay in the household in Japan, a home is kept for the return, or daily belongings stay in Japan, so residence in Japan can continue during the absence.
What is still open
These points could not be confirmed from an official source yet, so they are not stated as rules.
- The absence of an annual net wealth tax in Japan could not be confirmed from an official statement.
- The filing date of the final income tax return for the current year was not read.
- The filing period of each payment report form was not stated in the pages read.
- The thresholds of the Report of Assets and Liabilities were read only in a 2021 guide and are not stated here.
- Whether inheritance tax reaches a foreign home of a long term resident was not read for this guide.
Sources
See what this does to your own numbers
Add a property abroad next to everything else you own, and see the income and net worth that follow after tax, year by year.
Free to start. No card. Rules checked 30 October 2026.
This is education, not financial, tax, legal or immigration advice. Rules change and depend on the buyer's own facts. Advice from a licensed professional in the country concerned is what settles a particular purchase.