Foreigners Soon Must Declare Nationality to Buy Japan Homes

New property owners in Japan will soon have to start disclosing their nationality in the country’s new real estate registry database.

Starting in fiscal year 2026, which in Japan begins April 1, foreign nationals will be asked to declare their nationality when purchasing property, the Japan Times reported. The move, announced on Tuesday by Japan’s justice minister Hiroshi Hiraguchi, builds on goals set by newly elected prime minister Sanae Takaichi to place restrictions on foreigners looking to buy property in the East Asian country.

Non-Japanese buyers will have to share their country of origin in order to become a registered homeowner with the government. It should be noted, however, that the disclosure is not a prerequisite for actually buying property, though registering can help if owners encounter disputes regarding ownership or other issues that could arise involving property owners. Takaichi’s administration is rolling out the rules as part of a wider push for increased national and economic security regulations.

In addition to adding their names to the registry, buyers will also have to submit copies of their passports or residence cards to the government. Japanese nationals will also be required to adhere to this guideline. Doing so will be optional for property owners who are already registered with the government. Nationality information won’t appear on the public registry for real estate and will only be marked within the government’s internal real estate system.

The system currently in place only calls for most property owners to register their existing address. This process has made it harder for the government to tabulate how many foreign buyers are purchasing real estate, which Takaichi herself sought to tackle by asking the Justice Ministry last month to intervene, according to the Japan Times.

The announcement of the new regulations coincided with the government releasing its latest data on foreign land ownership near critical facilities such as nuclear power plants, military bases and islands near Japan’s maritime borders.

In fiscal year 2024, 3.1 percent of the total 113,827 property acquisitions were made by foreign nationals and companies. Chinese nationals accounted for the most transactions near those important facilities with 47.5 percent of purchases, followed by Taiwanese at 11.7 percent and South Koreans at 10.7 percent. Last month, Japan’s Land Ministry released a first-of-its-kind nationwide survey on property acquisitions by foreigners, which found that overseas buyers bought 3.5 percent of newly built condominiums purchased in Tokyo in the first half of this year.

— Chris Malone Méndez