How to Sell Property in Japan: A Step-by-Step Guide for Foreign Owners

Introduction

Selling property in a foreign country can feel overwhelming—especially when the legal system, language, and customs are different from what you’re used to. If you’re a foreigner who owns property in Japan—whether you live there or abroad—this guide is designed to make the selling process clear, practical, and approachable.

Japan has a stable, well-regulated real estate market, and the good news is: yes, foreigners can legally sell property in Japan, even if they don’t live in the country. However, the process comes with its own set of steps, expectations, and paperwork, and many foreign owners find themselves underprepared. This often leads to lost value, unnecessary stress, or relying too heavily on agents without understanding their role.

In this guide, you’ll learn exactly how to navigate the selling process—from estimating your property’s value, to choosing an English-speaking agent, to understanding taxes and legal requirements. Whether you own a condo in Tokyo, a house in Osaka, or a piece of land in Hokkaido, this step-by-step resource will help you sell your property efficiently and confidently.

1. Can Foreigners Legally Sell Property in Japan?

Yes, foreigners—both residents and non-residents—can legally sell property in Japan. There are no legal restrictions based on nationality. However, sellers must comply with Japanese laws and procedures, and non-residents may face additional requirements, such as appointing a legal representative or handling taxes through a withholding process.

Ownership of Japanese property is not conditional on having a visa or residence status, and the selling process is virtually the same for Japanese and foreign owners. The primary difference comes in communication and documentation, which is where having English-speaking professionals can help.

2. Step-by-Step Overview of the Property Selling Process

Here’s a simplified breakdown of the key stages:

Decide to Sell
Research Property Value
Choose a Real Estate Agent
Sign a Listing Agreement
Market the Property
Receive and Review Offers
Sign a Sales Agreement
Buyer Due Diligence & Loan Approval
Final Settlement and Ownership Transfer

Each step involves important decisions, timelines, and documents. Let’s explore them further in the sections below.

3. How to Estimate the Value of Your Property

Before listing your property, you need a realistic idea of its market value. There are three common methods in Japan:

Market Comparison: Look at recent sale prices of similar properties in the area.
Income Approach: Consider the rental yield if it’s an investment property.
Cost Approach: Estimate the rebuild cost minus depreciation.

Many sellers use free online tools like HowMa to get an AI-generated value estimate. For higher-value or unique properties, a professional appraisal (about ¥50,000–¥150,000) may be worthwhile.

4. Choosing a Real Estate Agent in Japan

A licensed real estate agent (fudousan gyousha) is usually involved in selling property. For foreign owners, working with an English-speaking agent is strongly recommended.

Things to consider:

Look for bilingual agents or firms that cater to international clients.
Confirm the commission rate (typically 3% + ¥60,000 + tax).
Choose between exclusive and non-exclusive agreements.
Ask how your property will be marketed (local websites, expat portals, etc.).

5. Taxes and Fees When Selling Property in Japan

Taxes and costs can vary depending on your residency status and how long you’ve owned the property.

Capital Gains Tax: Based on profit made from the sale. Long-term (owned 5+ years) is taxed at ~15%. Short-term is ~30%.
Withholding Tax: If you’re a non-resident, 10.21% of the sale price may be withheld by the buyer for tax compliance.
Agent Fees: As mentioned, approx. 3% + ¥60,000 + tax.
Judicial Scrivener (Shihoushoshi): Handles title transfer; expect ¥200,000–¥300,000.
Local Taxes: You may pay prorated fixed asset tax and city planning tax.

6. Required Documents and Legal Procedures

You (or your representative) will need to prepare the following:

Property Title Deed (登記簿謄本)
Proof of Identity (passport, residence card, etc.)
Personal seal certificate (印鑑証明書) or notarized signature
Certificate of registration for non-residents (from your home country)
Power of Attorney if selling via representative
Tax numbers and bank information for proceeds

A judicial scrivener will handle the legal transfer of ownership on settlement day.

7. Selling While Living Overseas

If you reside outside Japan:

You can still sell your property remotely.
Appoint a representative in Japan via Power of Attorney.
Funds from the sale can be wired internationally.
Prepare for additional document authentication (e.g., at a Japanese consulate).

Working with a bilingual agent and experienced scrivener is especially important in this case.

8. Tips for a Smooth and Profitable Sale

Time your listing: Spring and autumn are peak real estate seasons.
Consider staging or virtual staging to enhance listing appeal.
Respond quickly to inquiries to maintain buyer interest.
Be realistic and flexible during negotiations.
Understand cultural differences in negotiation style and buyer expectations.

9. Frequently Asked Questions (FAQs)

Can I sell property that I inherited? Yes, with proper documentation.
What if I have a tenant? You can still sell, but the sale terms may vary.
Do I need to pay taxes in my home country? Possibly—check with a tax advisor.
How long does the selling process take? Typically 2 to 4 months.

Final Thoughts

Selling property in Japan as a foreign owner may seem daunting at first, but with the right knowledge and support, it can be a smooth and successful experience. Use tools like HowMa to estimate your property’s value, find English-speaking professionals, and prepare documents in advance.

Whether you’re selling from overseas or within Japan, this guide is here to help you make informed decisions, maximize your proceeds, and move forward with confidence.