Penthouse vs Villa at a Glance

*Housing Japan offers full, comprehensive property management service for investment and holiday homes in Japan. See the offering – > Here

What is the fundamental difference between a Tokyo penthouse and a private villa?

A penthouse is a strata-title apartment on the uppermost floor or floors of a condominium building, with shared common areas and professional building management. A private villa is a standalone detached house on a separately titled plot of land, giving the owner full control of both the building and the ground beneath it.

Under Japan’s 区分所有法 (Act on Building Unit Ownership), first enacted in 1962, with its last major revision in 2002 and a further reform passed in May 2025 (effective April 2026), a condominium buyer owns their individual unit plus a proportional share of the building’s common areas and the land beneath it. This is called 区分所有 (strata title). A villa buyer, by contrast, holds 所有権, outright land title, over a separately registered parcel. The structure and the ground are both entirely theirs.

This legal distinction has real consequences. It affects what you can renovate without permission, how the property would be redeveloped at the end of its useful life, and how easily a future buyer can value what they are purchasing. In Tokyo’s luxury market, the word “villa” means a high-specification freehold detached residence used as a primary or long-term home, not a holiday property. That separates it clearly from seasonal resort properties in Karuizawa, Niseko or Hakuba, which are a different market.

Some boutique developments, small blocks of four to eight units on freehold land, sit somewhere between these two categories in feel. Under Japanese law, however, they are classified as condominiums and governed by the same Act on Building Unit Ownership as a large high-rise tower.

What does penthouse living in Tokyo actually offer?

A luxury penthouse in Minato or Shibuya delivers panoramic city views, concierge-level building services, strong security, and a well-known address, with no personal responsibility for exterior maintenance or common area upkeep.

The upper floors of towers in Roppongi, Azabu-Juban, Hiroo, Aoyama, and Shibuya offer unobstructed skyline sightlines, and in some cases clear views of Mt. Fuji on fine days. High-specification buildings in these areas typically include concierge desks, sky lounges, spas and sauna suites, private dining rooms, fitness centres, indoor pools, and valet parking. Many also provide guest rooms for visiting friends and family, libraries and co-working lounges, screening rooms, golf simulators, and landscaped rooftop terraces.

These amenities are shared common areas (共用部分), open to every resident of the building rather than attached to any single apartment, and they are run and maintained by the owners’ association through the monthly management fee. The sky lounge, the spa, the gym, and the view lounge are spaces a penthouse owner shares with their neighbors, not private rooms within the home, a clear contrast with a villa, where comparable space sits inside the owner’s own grounds. Security is managed through 24-hour staffed reception, card-key or biometric access systems, and CCTV throughout common areas, a practical draw for international executives and buyers who value privacy.

The lock-up-and-leave quality matters most to buyers who spend significant time outside Japan. Building staff handle security, maintenance scheduling, and general oversight whether the owner is in residence or not. That operational simplicity is difficult to replicate in a standalone house.

True penthouses are distinct from high-floor units in the same building. Private lift lobbies, increased ceiling heights, wraparound terraces, and occasionally double-height living spaces mark the difference in practice.

Which Tokyo addresses command the highest penthouse premiums?

Azabu, Hiroo, Motoazabu, Minami-Aoyama, and Shibuya account for a substantial share of Tokyo’s luxury condominium supply at the upper end of the market. Proximity to international schools, including the American School in Japan and the British School in Tokyo, combined with embassy districts and international medical facilities, supports consistent demand from corporate executives on expatriate packages.

Waterfront towers in Toyosu and Harumi offer newer stock and, in some cases, larger floor areas. They sit at different price points and attract a distinct buyer profile. What they do not carry is the established residential reputation of central Minato-ku addresses, which decades of demand have made a reference point for luxury condominium living in Tokyo.

What does private villa ownership in Tokyo offer that a penthouse cannot?

A private villa gives the buyer outright ownership of land, physical separation from neighbors, no shared building governance, and the freedom to design, rebuild, or extend the property according to personal vision, within Tokyo’s zoning rules.

Land ownership (土地所有権) is the defining feature. A villa buyer holds the land parcel as a separate registered asset. This is a different asset class from a proportional land share within a strata condominium, with different long-term planning implications. The owner can commission a full rebuild or significant extension without requiring approval from a co-owners’ association, subject to the 建蔽率 (building coverage ratio) and 容積率 (floor area ratio) set under the City Planning Act and Building Standards Act, along with any height restrictions and ward-level planning conditions that apply to the specific plot.

The practical differences from penthouse living are significant. A villa can accommodate a mature garden, private courtyard and private garages/motor court. These are not realistic options within a high-rise condominium. Multi-generational living and dedicated home office space are also more naturally suited to a detached footprint.

There is also a governance dimension. Villa owners have no building AGM (管理組合), no majority votes required to make decisions about their property, and no sinking fund assessments tied to shared infrastructure they did not choose. All maintenance decisions are made by the owner, on the owner’s timeline.

The supply of large-plot detached houses in central Tokyo wards is limited. Setagaya, Meguro, Shibuya, and Minato are the primary districts where buyers look for this type of property.

Land prices in these wards are high and vary widely. MLIT’s 2025 Land Price Publication (公示地価, valued as of 1 January 2025) puts the average residential land price in Minato-ku at about ¥2.58 million per square meter, second only to Chiyoda-ku at roughly ¥3.28 million among Tokyo’s 23 wards. Setagaya, a long-established family-house district, is more accessible, with a ward average closer to ¥830,000 per square meter, part of why larger plots are easier to find there. Meguro and Shibuya fall between these levels for residential land. Because a villa buyer pays for the land outright, plot size has a direct effect on the total cost.

Source: MLIT Land Price Publication (地価公示), 2025.

Housing Japan is currently developing eight detached luxury villas in central Tokyo, each with a large floor plan and its own private garage, in established central residential districts. Buyers interested in this type of home can register their interest on our registration page.

See the Raintree Website Here and Register your Interest Today

How do total costs of ownership compare between a Tokyo penthouse and a private villa?

Penthouses carry predictable but ongoing monthly costs, management fees, sinking fund contributions, and building charges, while villa owners bear the full cost of maintenance and capital repairs themselves, but have no shared governance overhead.

For penthouse owners, the two key recurring costs are 管理費 (kanri-hi, the monthly building management fee) and 修繕積立金 (shuuzen tsumitate-kin, the repair sinking fund contribution). These are set by the owners’ association and are non-negotiable. In high-specification buildings with amenity floors, concierge desks, and pools, these fees are higher than in standard condominiums. Parking is typically charged separately on top. For a guide on how Japan property taxes apply across property types, see our dedicated overview.

For villa owners, maintenance costs are variable and owner-controlled. Garden upkeep, structural maintenance, exterior repainting, and private security arrangements are all direct expenses. Periodic large capital items, roof replacement, exterior waterproofing, plumbing and electrical upgrades, must be funded entirely by the owner rather than pooled through a sinking fund. The cost can be higher or lower than condominium equivalents depending on the property and the owner’s choices, but the financial responsibility sits entirely with them.

Both property types attract the same purchase taxes. According to the National Tax Agency (国税庁), 登録免許税 (registration and licence tax) is charged at 0.4% of assessed value for the ownership registration of a new build. On a secondary-market purchase, the transfer of a building is taxed at 2.0%, while the transfer of land carries a reduced rate of 1.5%, in effect until 31 March 2029. The Tokyo Metropolitan Government confirms that 不動産取得税 (real estate acquisition tax) applies at 3% of assessed value on residential land and buildings. Stamp duty (印紙税) applies to both transaction types.

On an annual basis, the Ministry of Internal Affairs and Communications sets the standard 固定資産税 (fixed asset tax) rate at 1.4% of assessed value, with 都市計画税 (city planning tax) at a maximum of 0.3%, both applying in most central Tokyo wards. Villa owners pay these on the full land parcel. Penthouse owners pay on their proportional land share within the strata title, which is typically a smaller assessed base.

How do resale and rental considerations compare between a Tokyo penthouse and a private villa?

Penthouses in prime central wards generally offer faster resale due to a larger pool of potential buyers, while private villas command higher absolute values but trade in a thinner, slower market. Villas are less often rented out.

Condominium resale benefits from easier comparative valuation. Transaction records on REINS (レインズ), the official property database run by Japan’s four regional real estate distribution organisations (指定流通機構) under the land ministry, allow buyers and agents to benchmark penthouse values against recent comparable sales in the same building or postcode. Settlement timelines tend to be faster as a result.

Villa resale involves a smaller buyer pool and a more complex valuation process. Land shape, plot size, architectural condition, and address all carry significant weight. Marketing periods tend to be longer. That said, well-located villas in Azabu, Shibuya and other established central wards attract motivated buyers with a long-term ownership intent, and competitive situations do arise for well-presented properties.

On the rental side, furnished penthouses in Minato and Shibuya draw corporate tenants and expatriate executives whose company housing allowances support higher monthly rents. Villas are less commonly offered for rent at this level; the high purchase cost relative to achievable rent makes letting them out less common, and many are held as owner-occupied or left vacant by overseas owners between visits.

Government figures show condominium and detached-house prices have not moved in step. The Ministry of Land, Infrastructure, Transport and Tourism (MLIT) publishes a Real Estate Price Index that measures prices against a 2010 baseline of 100. By July 2025, Tokyo’s condominium index had reached 227.7, meaning prices had more than doubled since 2010. The detached-house index stood at 132.9 over the same period, a much smaller rise, while residential land sat at 144.8.

The same pattern holds across the wider Southern Kanto region, where the condominium index reached 216.6 against 122.5 for detached houses. This long-run gap helps explain why penthouses in central wards tend to resell more readily, though movement in an index does not predict how any single property will perform.

Source: MLIT Real Estate Price Index (不動産価格指数), July 2025 release.

Neither property type should be approached as a short-term trading play. Both carry Japan’s standard capital gains tax framework, and long-term holding periods of five years or more attract lower rates under the short-term versus long-term capital gains distinction in Japan’s income tax law.

Who is each property type best suited for?

Penthouses suit internationally mobile buyers who value more central areas, building security, and zero-maintenance convenience. Private villas suit established families and long-term Tokyo residents who want space, privacy, direct land ownership, and the ability to shape their home over decades.

The penthouse buyer is typically a single person or couple, often travelling frequently, who needs a property that runs itself between visits. Building staff handle security, mail, and all common area maintenance.

The villa buyer tends to have a longer-term Tokyo commitment, sometimes with school-age children, a preference for garden space and room to entertain, and a desire for architectural control that no condominium governance structure can offer. The absence of shared walls or shared decision-making suits buyers who want their home entirely on their own terms.

What should buyers know before purchasing either property type in Tokyo?

Both property types require careful due diligence on legal title, building or land condition, zoning restrictions, and tax structure. Foreign buyers also need a clear understanding of Japan’s purchase process, which is open but has specific steps.

Japan places no legal restriction on foreign nationals purchasing real estate of either type. No special permit is required at the point of purchase. For a full walkthrough of the process, see our guide to buying property in Japan as a foreign national. Non-resident buyers generally cannot access Japanese bank mortgages, so purchases at this price point are typically made in cash or using overseas financing.

For penthouses, due diligence should include a review of the 管理組合 (owners’ association) meeting minutes, the current sinking fund balance, building inspection records, and the 重要事項説明書 (important matters explanation document) that a licensed agent must provide before any purchase proceeds.

For villas, buyers should commission a soil contamination survey (土壌汚染調査) on older sites, arrange a structural inspection (既存住宅状況調査), confirm the applicable zoning category, and check for road setback obligations under Article 42 of the Building Standards Act, these can reduce the effective buildable area of a plot.

Earthquake resilience is worth examining for both property types. MLIT sets out two key milestones: Japan’s revised seismic standard (新耐震基準, 1981) and the enhanced standard introduced in 2000 (2000年基準). Properties built to or upgraded to the post-2000 standard offer a high level of resilience. For older villas, a seismic retrofitting assessment (耐震補強) is advisable before purchase.

Japanese inheritance tax (相続税) applies to Japan-located assets regardless of the heir’s nationality. Real estate is assessed using official valuations, 路線価 (road-side land price) for land and 固定資産税評価額 (fixed asset tax assessed value) for buildings, which are generally below market value. This can make property a tax-efficient part of an estate plan, but the interaction with overseas inheritance regimes is complex. Buyers should seek advice from a Japanese tax accountant (税理士) with international experience before structuring a purchase.

Frequently Asked Questions

Can foreigners buy a penthouse or villa in Tokyo?

Yes. Japan imposes no legal restrictions on foreign nationals purchasing real estate, whether a condominium penthouse or a freehold villa. There are no special permits required at the point of purchase. Foreign buyers should note that Japanese mortgage financing is generally unavailable to non-residents, so purchases at this level are typically made in cash. Buyers will need a Japanese bank account for the settlement process and should engage a licensed 宅地建物取引士 (registered real estate transaction agent) to handle the 重要事項説明書 disclosure. Some real estate brokers, such as Housing Japan, offer temporary banks accounts.

What are the monthly costs of owning a luxury penthouse in Tokyo?

Monthly ownership costs for a luxury Tokyo penthouse include 管理費 (building management fee) and 修繕積立金 (sinking fund contribution), which together in high-specification buildings can range from ¥50,000 to well over ¥200,000 per month depending on floor, size, and amenity level. Parking fees are often charged separately. Buildings with amenity floors, concierge desks, and indoor pools carry materially higher fees than standard condominiums. These fees are set by the 管理組合 (owners’ association) and can increase over time as the building ages and reserve fund requirements grow.

Do I own the land when I buy a Tokyo condominium penthouse?

You own a proportional share of the land beneath the building under Japan’s 区分所有法 (Act on Building Unit Ownership), not the land parcel itself. This share is determined by your unit’s floor area relative to the total building. A private villa buyer, by contrast, owns the land parcel outright as a separate title. The distinction matters for long-term asset planning. When a condominium building reaches the end of its useful life, decisions about demolition or redevelopment require a supermajority vote of the owners’ association, the individual unit owner cannot act unilaterally, unlike a villa owner on freehold land.

Which is better for resale, a Tokyo penthouse or a private villa?

Penthouses in Minato and Shibuya wards typically offer faster resale due to a larger pool of buyers, easier comparative valuation through REINS transaction records, and strong corporate tenant demand if leased while on the market. Private villas trade in a thinner market but attract motivated, long-term buyers willing to pay for exclusivity and land ownership. Neither property type should be purchased primarily as a short-term resale play. Both are subject to Japan’s standard capital gains tax framework. Long-term holding periods of five years or more attract lower tax rates under the short-term versus long-term capital gains distinction in Japan’s income tax law.

How does Japanese inheritance tax affect luxury property owners?

Japanese inheritance tax (相続税) applies to Japan-located assets regardless of the heir’s nationality or residence. Real estate is assessed for inheritance tax purposes using official valuations, typically the 路線価 (road-side land price) for land and the 固定資産税評価額 (fixed asset tax assessed value) for buildings, which are generally below market value. This assessed-value basis can make real property a tax-efficient vehicle within an estate plan compared to cash or listed securities, but the interaction with overseas inheritance regimes is complex. Buyers are strongly advised to seek specialist advice from a Japanese tax accountant (税理士) with international estate planning experience.

What is the difference between a Tokyo villa and a Karuizawa or Hakone villa?

In the Tokyo luxury market, “villa” refers to a high-specification freehold detached residence within the city, in wards such as Setagaya, Meguro, Shibuya, or Minato, used as a primary or long-term residence. Karuizawa, Niseko and Hakuba villas are seasonal resort properties, in mountain or onsen destinations used for weekends and holidays. The two categories serve very different lifestyle purposes and carry distinct ownership structures, price dynamics, and usage patterns. Housing Japan works across both the urban Tokyo villa market and resort property segments and can advise on the appropriate structure for each.

Penthouse or villa: let’s find what fits

The right choice depends on how you want to live in Tokyo, not just the budget. Housing Japan is a licensed brokerage that has specialised in central Tokyo luxury residential real estate for over 25 years. Co-founded by an expat and staffed by a multilingual team, we understand the questions international buyers ask. Our team can talk you through both options, the buying process, the running costs, and the homes currently for sale, and our property management service can look after your home whether you are in Tokyo or abroad.

Japanese homes are around 30 years old on average when they are rebuilt, but this reflects a long-standing habit of rebuilding rather than a limit on how long a house can stand. The figure measures the average age of homes at the point of demolition. With good maintenance, modern homes can last 60 years or more.

Key Facts

• Average age of homes at demolition in Japan: around 30 years (MLIT)
• Estimated lifespan of a well-maintained modern home: 60 years or more
• Legal useful life for tax purposes (法定耐用年数): reinforced concrete 47 years; wooden 22 years (National Tax Agency)
• New seismic standard (新耐震基準): in force since 1 June 1981
• Housing Quality Assurance Act: in force since 2000

How long do Japanese homes last?

On average, Japanese homes are around 30 years old when they are rebuilt. That figure comes from government data on the average age of a home at the point of demolition. It tells us how often homes are replaced, not how long they can survive. The comparison works rather like estimating human lifespan by looking only at people who died young, since it leaves out every house still standing, which is most of them.

There are cultural and practical reasons behind Japan’s habit of rebuilding. The idea of impermanence runs deep, and renewal is often valued over preservation. A well-known example is Ise Jingu, one of the most important shrines in Shinto. Every 20 years it is taken apart and rebuilt using the same traditional methods and materials. The cycle is treated as a sign of renewal rather than decay, and it passes building skills from one generation to the next.

Geography plays a large part too. Japan sits on the Pacific Ring of Fire and can face earthquakes, alongside the risk of fire and flooding. For much of the last century, building quickly and cheaply in wood made recovery faster after a disaster. The scale of reconstruction after the Second World War reinforced this. Whole districts were rebuilt at speed, and replacing homes became routine rather than exceptional. Over time, that history shaped a culture that favored new construction over long-term upkeep.

Where does the value lie in Japan Real Estate, in the land or the building?

In Japan, the land is the lasting part of a property’s value. Buildings are treated as assets that age and are eventually replaced, while well-located land tends to hold its worth over time. After a few decades, much of a home’s value sits in the land beneath it. This is why location carries so much weight here.

This differs from what buyers often expect in countries where houses tend to gain value with age. In Japan, people think about a home and the ground it stands on as two separate things. The building serves the people living in it today, and the land remains the long-term anchor. For owners, that puts a clear focus on where a property sits, on the quality of the land itself, and on how well the home is looked after over its life.

The pattern also shapes how people approach a purchase. Buyers tend to weigh the character and condition of a home against the lasting worth of the land. In central Tokyo, where land has held its value over the long term, that balance is reassuring: a home can be enjoyed and updated over the years, while the land provides a steady foundation beneath it. It is one reason owners here are happy to maintain and improve a property, knowing the ground it stands on holds its worth.

What do land prices in central Tokyo show?

Land inside Tokyo’s central 23 wards have held its value over the long term, according to Ministry of Land, Infrastructure, Transport and Tourism (MLIT) data. The area is Japan’s financial and cultural center, and demand for property there has stayed steady through wider economic ups and downs.

Graphic from Housing Japan’s Japan Land Prices 2026 Analysis. Source: MLIT Published Land Prices (地価公示), Tokyo 23 wards residential average.(JP only)

Over the long term, land in the central wards has shown resilience. National figures have moved through periods of rise and decline, and commercial land has historically been more variable than residential land. Central Tokyo has weathered these shifts. In some central areas, land values today stand higher than any point over the last two decades , according to MLIT data. The chart above gives the long-run picture, with residential land following a steadier path than commercial.

Several factors support central demand today. Low interest rates, ongoing urban redevelopment, and interest from overseas buyers have all played a role. Major infrastructure and mixed-use projects, such as Azabudai Hills, continue to reshape the city. As Tokyo changes, its central districts remain a consistent focus for people looking for long-term value rather than short-term gains.

How long do modern Japanese homes actually last?

Modern homes last considerably longer than the old 30-year figure suggests. Research from a MLIT study states that counts both standing and demolished homes estimates an average around 65 years. With regular maintenance, restoration, and retrofitting, even a wooden house can last 60 years or more. The shorter figures reflect a habit of replacement, not a hard limit on how long a building can stand.

Construction quality has improved a great deal. Until a few decades ago, the common approach was to rebuild after earthquakes rather than build to withstand them. Today, modern engineering and steel-reinforced concrete (SRC) allow tall buildings to perform well in earthquakes and last far longer. Maintenance matters too. Homes that are looked after, with roofs, fittings, and services kept in good order, hold up far better than those left to age.

Attitudes are shifting as well. Demand for new homes has outpaced supply, and many younger buyers now renovate older properties instead of building from scratch. Housing Japan recently remodelled a condominium in Akasaka, updating a compartmentalised older layout into a modern, open living space suited to how people live today. Projects like this show how existing buildings can be brought up to current standards and given a longer life. They also reduce demolition waste, which makes renovation a more sustainable option as Japan rethinks its older housing stock.

What does the government data say, and how does Japan compare?

The government publishes “useful life” figures for buildings, used mainly for tax depreciation. These are accounting figures, not a measure of how long a building can physically stand. A reinforced-concrete home does not become unusable at 47 years, any more than a car stops running once it is fully depreciated. This distinction is a common source of the 30-year confusion. The current figures from the National Tax Agency for residential buildings are below.

Source: National Tax Agency (国税庁), “Useful Life of Depreciable Assets” (JP only)

On the international comparison, MLIT data put the average age of a demolished home at 32.1 years in Japan, against 66.6 years in the United States and 80.6 years in the United Kingdom (2020 figures). It is important to read these as demolition-age figures rather than maximum lifespans. They differ partly because of building materials, climate, and regulations, and partly because of how often homes are replaced. As noted above, survival-based estimates that count standing homes place Japanese houses much closer to other countries.

Ministry of Land, Infrastructure, Transport and Tourism (MLIT) — “Status of Japan’s Housing Stock” (我が国の住宅ストックをめぐる状況について), 2020: https://www.mlit.go.jp/policy/shingikai/content/001323215.pdf (JP only)

Should you buy an older or newer luxury home in Tokyo?

Start with location and land value. The history of land prices in an area tells you a great deal, and Housing Japan can provide this data from official sources. Central Tokyo has shown a long-term upward trend in land values, according to MLIT figures, which is why many buyers begin their search there.

Newly built homes are generally favoured by Japanese buyers, which can support demand when a property is later resold. Newer buildings also tend to offer better renovation potential and are built to current standards. This preference is one reason new developments hold their appeal, particularly in central districts.

If you are considering a second-hand home, two dates matter. A “Shin-taishin Kijun” building received its Construction Completion Certificate on or after 1 June 1981, meaning it meets the stricter 1981 earthquake-resistance standard. The Housing Quality Assurance Act, in force since 2000, introduced clearer measures for assessing the condition of a property and improved safeguards for wooden buildings. Both make it easier to judge an older home with confidence. It is also worth reviewing maintenance and renovation records, since a well-kept older home can be a sound choice.

Working with Housing Japan

At Housing Japan, we specialize in buying, selling, and managing luxury real estate in central Tokyo. We work with clients from around the world and focus on central Tokyo properties. We advise clients on properties that are right for them and matches their needs and investment goals. Our bilingual team can walk you through land-price history, building standards, and the condition of a specific property. To learn more, contact our team for a personalized consultation.

Q&A

How long do houses in Japan last? The commonly quoted figure of around 30 years measures the average age of homes at demolition, not their true lifespan. With regular maintenance and modern materials, many homes last 60 years or more. The number reflects a cultural habit of rebuilding rather than any limit on how long a house can stand.

Do houses in Japan depreciate? Yes. Across Japan, buildings generally depreciate over time, while the land holds its value and can rise in high-demand areas such as central Tokyo. This means most of a property’s long-term worth sits in the land. You can view luxury properties at Housing Japan to see current homes in central districts.

Why are older houses cheaper in Japan? Older houses cost less because the building tends to depreciate while the land holds most of the value. Many older homes also lack modern features and predate current earthquake-resistance standards. After several decades, a buyer is often paying mainly for the land, with the structure adding little to the overall price.

What is the lifespan of a building in Tokyo? It depends on construction. Reinforced-concrete buildings carry a legal useful life of 47 years for tax, while wooden homes carry 22 years. These are accounting figures, not physical limits. In practice, well-built, well-maintained buildings, including those meeting the 1981 seismic standard, can last far longer.

What is the average age of Japanese property at demolition? Government data puts the average age of a home at demolition at around 30 years, shorter than figures sometimes cited for the United States and the United Kingdom. This measures demolition age, not physical limit. Survival-based estimates that count standing homes place the figure around 65 years.

Are properties in central Tokyo different? Properties in central Tokyo tend to be newer than the national average, driven by steady demand for new developments and renovations. Land values inside the Yamanote Line loop have held up well over the long term, according to MLIT data, which supports the appeal of central districts for buyers.

Hiroo is a chic and peaceful residential area neighboring Azabujuban and Ebisu. Despite being close to bustling commercial and business districts, it still maintains a serene atmosphere thanks to its abundant greenery. Hiroo is known for its luxurious and spacious low-rise apartments and houses, which are tailored towards foreign expats. In addition to large condominium apartments, these homes cater to those seeking a comfortable and high-end lifestyle in Tokyo…

Japanese homes differ from Western layouts in three key ways: bathrooms and toilets are kept in separate rooms, living spaces are divided into distinct public and private zones, and traditional tatami rooms replace the open-plan living areas common abroad. Modern Japanese homes blend these traditions with open-plan LDK layouts and Western-style fittings.

Many people looking at Japanese property for the first time, either as a renter or buyer, are not aware that there are differences between their home country in the typical room types and their intended purposes. This article explores some of the most common features and introduces major differences between Japan and abroad.  

What Does a Traditional Japanese Home Look Like?

The first area we will look at is the living room. The floor plan above shows a typical, old, one-storey house. There is 1 bedroom, an i-ma (Japanese style living room), a kyaku-ma (Japanese style guest room), a kitchen and a bathroom in this house. Each room is separated by walls or fusuma (paper-covered slide doors and partitions). Most people are reminded of the Showa era (1926–1989) when seeing this typical Japanese-style house.  

 It is said that Japanese-style residences these days are based upon the Shoin-zukuri style from the Muromachi era (1336–1573), which was the turning point when aristocratic society turned into samurai society. Shoin-zukuri was a residence as well as a workplace of samurai, and since they regularly engaged in deal-making and negotiations to expand their power, their residences needed to have a public space for meeting people and a private space for their daily life.  The typical Japanese house features traditional tatami flooring, sliding paper doors called shoji, and a distinct minimalist design aesthetic that showcases harmony with nature.

What Does LDK Mean? and How Does the Japanese Room Naming System Work?

LDK is the abbreviation used in Japanese real estate listings for a combined Living, Dining, and Kitchen space, an open-plan area that functions as the social heart of the home. Almost every modern Japanese home is described using this system, so understanding it is one of the first practical steps for anyone searching for property in Japan.

The number before LDK tells you how many separate bedrooms the property has. A 1LDK has one bedroom plus the combined living-dining-kitchen area. A 2LDK has two bedrooms. A 3LDK has three. The LDK space itself is always one open room shared between all occupants, regardless of the number of bedrooms.

Typical size ranges in Tokyo give a useful sense of what each type offers in practice. A 1LDK generally runs from around 30 to 55 square meters and suits singles or couples. A 2LDK typically falls between 55 and 75 square meters and works well for a couple with one child or two people who each need a separate room. A 3LDK, at roughly 70 to 90 square meters, is the standard family layout.

You may also see the abbreviation DK, Dining and Kitchen, without the L. This means the combined area is smaller and does not include a proper living room. DK layouts are more common in older buildings. The letter S, as in 1SLDK or 2SLDK, stands for a service room or storage room, a space that does not meet the legal definition of a bedroom because it lacks a window or sufficient floor area, but can sometimes be used as a study or small additional room.

One key difference from Western listings is that Japanese room counts exclude the LDK. A “3-bedroom apartment” in the US or UK sense would typically be listed as a 3LDK in Japan, three separate rooms plus the shared living-dining-kitchen area.

What Is the Kitchen Like in a Japanese Home?

Japanese kitchens are designed around efficiency and clean separation of tasks. In most modern apartments and houses, the kitchen sits within the open LDK area, with preparation and cooking space along one or two walls and the dining area directly adjacent. This layout makes it easy to cook and stay connected with the rest of the room, a practical feature for everyday family life.

Older homes may include a kamado, a traditional clay stove built into a raised cooking platform, though these are now rare outside of rural properties and heritage buildings. Modern Japanese kitchens are well equipped, typically featuring an induction or gas hob, a combination microwave, and a fish grill, a compact broiler built into the hob unit that is used for grilling fish and other foods. Full-sized ovens are less common in Japan than in Western countries, though they appear more regularly in larger and premium homes.

Premium developments in central Tokyo often feature imported European kitchen fittings, island layouts, and high-specification appliances as standard, reflecting the expectations of an international buyer and renter market.

Why Do Japanese Homes Have Separate Bathrooms and Toilets?

Japanese homes separate the bathroom and toilet into two distinct rooms, a design choice that surprises many people coming from countries where both are combined in a single space. The bathroom in Japan is considered a place to properly unwind, not just wash, and keeping it separate from the toilet reflects that distinct purpose.

The tradition has deep roots. During the Edo era (1603–1868), bathrooms and toilets were typically in separate outbuildings and shared among extended family members. The bathing ritual itself developed around shared hot water, family members would wash themselves thoroughly before soaking in the tub, keeping the water clean for the next person. This is why Japanese bathrooms are designed as wetrooms, with a shower area for washing separated from the soaking tub. The practice of washing before entering the bath remains common in Japanese homes today.

Keeping the toilet in a separate room also has a straightforward practical benefit: when one person is bathing, others can still use the toilet without any disruption.

Japanese toilets are worth noting in their own right. Most modern homes have a washlet, a toilet seat with a built-in bidet function. Higher-specification models also include heated seats, automatic flushing, and odour control, and are a standard feature rather than a luxury addition in new Japanese homes.

What Is a Tatami Room?

A tatami room, known in Japanese as a washitsu, is a traditional-style room floored with woven straw mats called tatami. Each mat is a standard size, historically used as a unit of room measurement, and the texture and scent of fresh tatami is considered one of the distinctive sensory experiences of a Japanese home.

These rooms are versatile by design. They have traditionally served as sleeping areas, guest rooms, and spaces for tea ceremonies, and the tatami surface is well suited to sitting and lying directly on the floor. The tatami room often connects to the main living area through sliding doors, allowing the two spaces to be opened up or divided depending on how the room is being used.

In new developments, dedicated tatami rooms are less common than they once were, as buyers and renters increasingly choose an additional Western-style bedroom or a larger LDK instead. That said, some premium developments include a washitsu as a considered design feature, a quiet counterpoint to the open-plan living areas around it, and one that tends to be appreciated by people who spend time on the floor, whether for stretching, yoga, or simply relaxing.

What Is a Genkan? and Why Do Japanese Homes Have an Entry Foyer?

One of the first things visitors notice about a Japanese home is the genkan, a recessed entry area just inside the front door where shoes are removed before stepping into the main living space. This is not simply a cultural habit; it is built directly into the architecture. The genkan floor sits slightly lower than the rest of the home, creating a physical boundary between the outside world and the interior. Stepping up from the genkan into the hallway marks the transition into the home’s living space.

The practice of removing shoes at the entry has practical roots in Japan’s traditional use of tatami mats and raised wooden flooring, both of which would be damaged by outdoor footwear. Today, even homes with Western-style flooring throughout retain the genkan as a standard architectural feature. Most genkans include a getabako, a built-in shoe storage cabinet, directly beside or above the entry area, keeping footwear out of sight and the space tidy.

For people coming from countries where shoes are worn indoors, the genkan requires a small adjustment. In practice, most people find it straightforward and many come to appreciate the clear separation it creates between outdoor and indoor space. When viewing a property, the size and layout of the genkan is worth noting. A well-designed entry with sufficient shoe storage makes a meaningful difference to daily comfort, particularly in smaller apartments.

How Do Japanese Apartments Use Balconies?

Balconies are a standard feature of Tokyo apartment buildings and play a larger role in daily life than they might in other cities. Most units have at least one, and in taller buildings the views they offer, across the city, towards parks, or over Tokyo Bay, become a genuine part of the living experience.

Practically, balconies are used for drying laundry, which is common in Japan where tumble dryers are less widespread than in Western countries. Many people also use them for container gardening, a morning coffee spot, or simply as an extension of the indoor living area on warmer days. In luxury developments, balconies are often larger, finished to a higher standard, and designed with outdoor living in mind rather than purely as a utility space.

How Do Japanese Homes Handle Storage?

Japanese homes are well known for their practical approach to storage, with built-in solutions integrated throughout the property rather than left as an afterthought. The most traditional form is the oshiire, a deep closet with sliding doors, originally designed to store futons during the day and free up the floor space of a multi-purpose room. This same principle of concealed, built-in storage extends across the modern Japanese home, from hallway shoe cabinets to floor-to-ceiling bedroom wardrobes.

In newer developments and premium properties, storage design has become increasingly sophisticated, with walk-in wardrobes, under-stair storage, and custom-fitted systems that make the most of every room. For anyone moving from a home with large, dedicated storage rooms or a garage, it is worth assessing storage carefully when viewing a property, and worth reading our guide to Tokyo apartment layouts for more detail on how to plan a move effectively.

What Flooring Is Common in Japanese Homes?

Modern Japanese homes use a range of flooring materials depending on the room and the age of the building. Engineered wood and hardwood flooring are popular in living areas and bedrooms, offering warmth underfoot and a clean, contemporary look that suits both Japanese and Western-style interiors. Tiles are standard in bathrooms and kitchens for practical reasons. Carpet is used in some older buildings but has become less common in newer developments.

Tatami remains the traditional flooring of choice for washitsu rooms, and in properties that include one, the material is typically refreshed or replaced between tenancies. Some premium developments use high-quality natural tatami as a deliberate design statement, pairing it with modern fittings in a way that makes the contrast part of the appeal.

How High Are Ceilings in Japanese Apartments?

Ceiling height is another area where Japanese homes differ noticeably from those abroad. The average ceiling height in Japan used to be 220cm because people generally sat on tatami mats and the ceiling height was decided based on the eye level. As Japanese houses became more westernized, people’s lifestyles also changed and tatami was replaced by chairs and flooring. Japan’s Building Standards Act sets a legal minimum ceiling height of 2.1m for all habitable rooms, under Article 21 of the Act’s Enforcement Order. In practice, most new-build condominiums and houses use 240 cm as their standard height, which developers have converged on for air conditioning efficiency and general comfort.

How Has Japanese Home Design Changed Over Time?

Overseas, the living room is located close to the entrance of a house and visitors are shown into the living room first. Sofas and tables are placed in the living room, so this is where hosts welcome visitors. Additionally, the living room is often a hub of family life.   

In contract to foreign residences, the functions of a Japanese living room is divided into i-ma (private space) and kyaku-ma (public space). Visitors can see the hallway first after going through the entrance, and the other private spaces are generally hidden. I-ma is considered to be a private space where family members can be themselves so that it tends to be located in the farthest from the entrance.   

With the westernization of Japanese housing, there was a trend toward people choosing houses with an ousetsu-ma (guest room) rather than a kyaku-ma (Japanese-style public space). Nowadays, however, people think they don’t even need guest room much because they don’t often have guests, and they would rather use that space for other purposes, therefore the number of homes without a dedicated guest room has been increasing. The boundary between the living room and the Japanese-style i-ma is becoming less defined.  

There is also a trend towards contemporary Japanese homeowners adapting traditional layouts to suit modern lifestyles, possibly integrating open-plan concepts or multifunctional spaces.

How Is Technology Changing Japanese Home Design?

Smart home technology has become a standard part of new residential construction in Japan, rather than an optional feature reserved for high-end developments. Security entry systems using keycard, PIN, or smartphone access are now common in new-build homes, and video intercom panels, allowing residents to see and speak with visitors from their phone, whether at home or elsewhere, are near-universal in new Japanese homes.

Home automation has moved into the mainstream alongside security. Many new homes include systems that allow lighting, air conditioning, and ventilation to be adjusted remotely via a smartphone app. As these systems have become more affordable and better integrated, they have shifted from a selling point to an expectation, particularly among international buyers and renters who are accustomed to connected home environments.

The connection between smart technology and energy efficiency is increasingly close. Integrated platforms that combine heating controls, energy monitoring, and security into a single system are now appearing in new residential developments across Japan, reflecting both consumer demand and the government’s broader push toward lower-energy homes. Japan’s smart home market was valued at approximately USD 7.6 billion in 2024 and is growing steadily, driven by IoT adoption, an ageing population with demand for assisted living technology, and national energy policy that rewards homes with strong efficiency credentials.

In premium properties, these systems are typically built in from the design stage rather than retrofitted after construction, and the specification of a home’s technology package, alongside its energy rating, is becoming a meaningful part of how buyers and renters evaluate a property.

Are Japanese Homes Energy Efficient?

Energy efficiency has become a significant part of how new homes in Japan are designed, built, and evaluated, and the standards are rising quickly.

The foundation is good insulation. Most new Japanese homes include double or triple-glazed windows, high-performance wall and roof insulation, and draught-sealed construction that reduces heat loss in winter and keeps interiors cooler in summer. These are not premium additions in new builds, they are standard features driven by government requirements that have been tightening progressively since the 1990s.

The most significant recent change came in April 2025, when compliance with Japan’s energy conservation standards became mandatory for all newly built homes under the revised Building Energy Efficiency Act. This means any home built from that point must meet defined thermal insulation and energy consumption standards. Previously, smaller residential buildings were exempt, that exemption no longer applies.

Looking further ahead, the Japanese government has set a target for all newly built homes to meet ZEH standard, Zero Energy House, or ゼッチ, by 2030. A ZEH home is designed to produce as much energy as it consumes on a net annual basis, primarily through solar panels combined with high-level insulation and energy-efficient appliances and heating systems. MLIT and the Ministry of Economy, Trade and Industry (METI) both support this program, and government subsidies are available for buyers and builders of certified ZEH properties.

Solar panels are now a common feature on detached houses in Japan, and battery storage systems, which allow households to store energy generated during the day for use in the evening, are becoming more common in both new houses and premium condominium developments.

For buyers, energy performance is increasingly a practical consideration as well as an environmental one. Homes that meet higher energy efficiency grades qualify for preferential mortgage rates under the Flat 35 loan programme administered by the Japan Housing Finance Agency, and new homes built after 2024 that do not meet energy conservation standards are no longer eligible for the housing loan tax deduction.

Finding the Right Home in Japan

Understanding how a Japanese home is arranged, and why, makes it much easier to find a property that suits how you actually live. The separation of public and private space, the dedicated bathroom and toilet rooms, the tatami areas, and the careful use of storage all reflect a design logic that has developed over centuries. These features are worth evaluating alongside more familiar considerations like transport access, floor area, and building age.

If you are looking for a home in Japan, whether a traditional layout or a Western-style property, Housing Japan’s multilingual team is available to guide you through the process. With over 25 years of experience in Tokyo real estate, we have helped buyers and renters from around the world find properties that suit their lifestyle. We have also been involved in the development of Western-style luxury homes in central Tokyo, including Gravitas Akasaka, Gravitas Minamiazabu, and Zenith Akasaka with more on the way.

FAQs on Japanese Home Layouts

What does LDK mean in Japanese homes? LDK stands for Living, Dining, and Kitchen, a combined open-plan space that forms the social heart of most modern Japanese homes. The number before LDK indicates the number of separate bedrooms. A 2LDK home, for example, has two bedrooms plus one shared living-dining-kitchen area.

Why do Japanese homes have separate bathrooms and toilets? In Japanese homes, the bath and toilet are traditionally kept in different rooms. The bathroom is considered a place for relaxing in a deep soaking tub, not just washing, so it is kept separate from the toilet for hygiene reasons and to allow multiple family members to use the facilities at the same time.

How big are luxury homes in Tokyo? Luxury condominiums in central Tokyo typically range from around 80 square metres for a well-appointed one or two-bedroom units to well over 200 square meters for larger residences in premium developments. Floor area varies significantly by building and location, and Housing Japan’s team can advise on what is currently available.

What is a tatami room and do new homes in Japan still have them? A tatami room, called a washitsu in Japanese, is a traditional-style room floored with woven straw mats. Tatami rooms have historically served as sleeping areas, guest rooms, and spaces for tea ceremonies. Dedicated washitsu are less common in new builds, though some premium developments include one as a deliberate design feature.

What is the ceiling height in a Japanese home? Japan’s Building Standards Act sets a legal minimum ceiling height of 2.1 metres for all habitable rooms. In practice, most new-build homes use 240 cm as the standard. Premium and luxury developments often go higher, with ceiling heights of 270 cm or above becoming an increasingly common feature.

Written by the Housing Japan Editorial Team – Housing Japan is a Licensed Real Estate Specialists in Central Tokyo with over 25 years of experience in luxury residential property.

Why Expats Need a Specialist Agent in Tokyo

Tokyo’s property market runs on local conventions that can catch foreign clients off guard. Rental contracts often require a Japanese guarantor or guarantor company. Many landlords are cautious about tenants without a long residency history. Mortgage applications from non-permanent residents follow a different path than those from Japanese citizens, and the documentation tends to be heavier. Even viewing a property can involves a separate listing agent, a buying or renting agent, and a series of forms that are rarely available in English by default.

A general agent who occasionally works with foreigners may not be set up to handle this. A specialist agent for expats has the language coverage, the lender relationships, and the contract experience to move a foreign client through the same process a Japanese client would face, without the extra friction.

Types of Real Estate Agents Serving Expats in Tokyo

Foreign clients in Tokyo generally come across three kinds of agencies, each with a different way of working.

The first is the large Japanese agency with a foreign client desk. Major domestic firms sometimes have a small team set up to handle inquiries in English, which gives clients access to a wide reach across listings. The trade-off is that the foreign desk is usually one part of a much larger Japanese-speaking operation, so service quality for international clients can depend heavily on which agent picks up the inquiry and how busy the wider office is at the time.

The second is the expat-focused boutique agency. These are smaller firms built specifically around international clients, where multilingual service is the default rather than an exception. The team usually has direct experience with the specific questions foreign buyers and tenants ask, and the same staff handle a client through the whole transaction. Listings tend to focus on central Tokyo wards where most expats look. Housing Japan sits in this category.

The third is online listing platforms and portals. These are websites that aggregate listings from many agencies, often with English interfaces, and they are useful for browsing what is available and getting a feel for prices but usually not licensed Japanese real estate brokers. The actual transaction still happens through an agent, and the platform itself rarely provides the kind of guidance an expat needs through contracts, financing, or property management afterwards.

Most international clients buying or renting in central Tokyo end up working with the second category, because the combination of language coverage, foreigner-specific experience, and continuity through the full transaction matches what they actually need. The points below set out what to look for in any agent of this kind.

What to Look for in an Expat-Focused Agent

A few things genuinely matter when choosing who to work with in Tokyo.

Language coverage that goes beyond the front desk. It is not enough for one person at the company to speak English. The agent showing the property, the back-office staff handling contracts, and the property manager after move-in all need to communicate clearly with the client. Ask how many languages the team works in and at what stages.

A licensed Japanese real estate agency. Any company brokering property in Japan must hold a Takken license issued by the relevant prefectural governor or the Minister of Land, Infrastructure, Transport and Tourism. This is the baseline. Confirm the company is licensed and operating from a registered office in Japan.

Direct experience with foreign buyers and tenants. Foreign clients face specific questions: Can a non-resident buy property in Japan? How do mortgage options change with visa status? What taxes apply at purchase and annually? An agent who works with expats every week answers these from experience, not from a quick search.

A full range of services. Buying, renting, selling, and ongoing property management are often handled by separate companies in Japan. Working with one agency that covers all of these means a single point of contact across the life of the property. This matters more than it sounds when you are based overseas or busy with work.

Stability and continuity. Tokyo property is a long-term relationship. An agency that has operated through multiple market cycles is one that has seen what works and what does not.

How Housing Japan Approaches the Expat Market

Housing Japan was founded in 2000 by Joe Rigby and Mitsuo Hashimoto. The starting point was personal: Rigby, an expat himself, had a frustrating experience trying to find accommodation in Tokyo and concluded that the service available to international clients did not match what they needed. He and Hashimoto built the company to fix that gap, starting as a two-person operation. Over twenty-five years later, both founders still run the business, and the team has grown to over 40 staff at Housing Japan directly, with over 60 people across the wider group, which includes HJ Asset Management and resort Japan.

That origin shapes how the company works day to day. A few specifics worth knowing:

• Over Twenty-five years in the Tokyo market. Housing Japan was founded in 2000 and reached its 25th anniversary in 2025, working continuously with international and expat clients through that period.
• Multilingual team. Staff handle inquiries and transactions in multiple languages, with English service available across sales, rentals, and property management.
• Founder-led. Joe Rigby and Mitsuo Hashimoto remain at the head of the business, which means the people setting the standard for client service are the same people who created the company’s approach in the first place.
• End-to-end services. The company covers brokerage (sales and rentals), property management, short-term furnished apartments, and luxury residential development through its in-house development arm.
• Central Tokyo focus. The team specializes in central Tokyo neighborhoods, including Minato, Shibuya, and Chiyoda wards, where most international clients look to live or invest.
• Tokyo-based office. Housing Japan operates from Azabudai, Minato-ku, in central Tokyo.

The combination most expats find useful is straightforward: a company that started because an expat could not get the service he needed, run by people who have spent a quarter-century making sure that gap stays closed.

What Working with Housing Japan Looks Like

For most expats looking for Tokyo Real Estate, the process begins with an inquiry through the website or a referral, followed by a consultation to understand what they are looking for, their visa or residency situation, and their budget. From there the team handles property search, viewings, contract negotiation, and the closing or move-in process. For owners, property management can continue indefinitely after the transaction, including tenant placement, rent collection, and maintenance coordination.

Because the same company covers these stages, clients living overseas or travelling for work can manage a Tokyo property without having to coordinate between separate agencies for each function.

Q&A: Choosing a Real Estate Agent in Tokyo as an Expat

Can foreigners buy property in Japan without permanent residency? Yes. Japan places no nationality or residency restrictions on buying real estate. Anyone can purchase property regardless of visa status or whether they live in Japan. Financing is a separate question, since most Japanese banks require permanent residency or specific visa categories for a domestic mortgage, but the purchase itself is open to non-residents.

Do I need to speak Japanese to work with a real estate agent in Tokyo? No, if you choose an agent that operates in your language. Housing Japan and other expat-focused agencies handle inquiries, viewings, and contracts in English and other languages. Working with a general Japanese agency without language support tends to be much harder.

How long has Housing Japan been operating? Housing Japan was founded in 2000 and marked its 25th anniversary in 2025. The company is still led by its co-founders, Joe Rigby and Mitsuo Hashimoto.

What services does Housing Japan offer? Housing Japan covers luxury residential sales, Investment real estate, long-term rentals, short-term furnished apartments, property management, and luxury residential development, all from its office in Azabudai, Minato-ku.

What areas of Tokyo does Housing Japan cover? The company focuses on central Tokyo, including Minato (Azabu, Hiroo, Roppongi, Akasaka), Shibuya, and Chiyoda wards, which are the areas where most international clients look to live, rent, or invest.

What Next?

Whether you are just starting to look at Tokyo or ready to sign a contract, Housing Japan can guide you through it. The company was founded in 2000 by an expat who wanted to fix the experience of finding a home in Tokyo as a foreigner. Over twenty-five years later, the same founders still run the business. Our multilingual team covers buying, selling, renting, and managing luxury residential real estate in central Tokyo, so international clients have a single point of contact across every stage. Get in touch to talk through what you are looking for.

Key Takeaways

• Foreigners can own 100% of a Japanese company with no nationality restrictions on founders
• The Business Manager visa now requires ¥30 million capital (increased from ¥5 million in October 2025), plus mandatory staff hiring and management experience
• Two main company types: Kabushiki Kaisha (KK) costs around ¥250,000 to register; Godo Kaisha (GK) costs around ¥100,000
• The Startup Visa (expanded nationwide in 2025) offers up to 2 years to prepare your business before meeting full requirements
• You do not need to live in Japan to incorporate a company, though banking and visa requirements often make local presence practical

Who this guide is for: This article is written primarily for foreign founders who plan to set up a Japanese entity themselves and personally relocate to Japan to manage the business. If you represent an established foreign company expanding into Japan, the incorporation steps below still apply, but the visa section likely will not. See the “Two Paths” section below for which parts of this guide are relevant to your situation.

Japan represents one of the world’s largest economies and a gateway to the broader Asian market. For foreign entrepreneurs considering Tokyo or other Japanese cities as their business base, understanding the incorporation process, visa requirements, and company structures is essential for a successful market entry.

Japan is the world’s third-largest economy by nominal GDP and home to more than 125 million consumers, making it one of Asia’s largest and most stable business environments for long-term business growth.

This guide walks through every step of setting up a business in Japan, from choosing the right company type to navigating the significantly updated 2025 visa regulations that affect foreign business owners.

Yes, foreigners can own 100% of a Japanese company. There are no nationality restrictions under Japan’s Companies Act, and both individuals and foreign corporations may act as shareholders or founders. In 2026, Registering a company in Japan typically requires choosing between a Kabushiki Kaisha (KK) or Godo Kaisha (GK), registering with the Legal Affairs Bureau, and, if residing in Japan, meeting the updated Business Manager visa requirements, including ¥30 million in capital and mandatory employee hiring.

Table of Contents

• Can Foreigners Start a Business in Japan?
• Understanding the Four Company Types in Japan
  • Kabushiki Kaisha (KK)
  • Godo Kaisha (GK)
  • Gomei Kaisha — General Partnership
  • Goshi Kaisha — Limited Partnership
• Two Paths to Setting Up in Japan: Self-Directed vs Professionally Managed
• Visa Options for Foreign Business Owners
  • Business Manager Visa
  • Startup Visa
  • Highly Skilled Professional Visa
• Step-by-Step Guide to Registering (Incorporating) a Company in Japan
• Costs and Timelines
• Ongoing Operational Costs
• Office Space Requirements
• Professional Support for Market Entry
• Common Mistakes to Avoid

Can Foreigners Start a Business in Japan?

Yes, foreign nationals can establish and fully own a company in Japan. There are no nationality restrictions on company founders or shareholders under Japanese law. Both individuals and foreign corporations can hold 100% ownership of a Japanese business entity.

Since regulatory reforms in 2015, the Japanese government removed the legal requirement of having a local resident as a representative director. This means a company can technically be established in Japan remotely, without the founder being physically present, though practical considerations around banking and visas often require some form of local presence.

If you are a non-resident establishing a company in Japan, you will need to submit a Foreign Exchange Act notification through the Bank of Japan. This is a procedural requirement rather than a barrier to entry.

Understanding the Four Company Types in Japan

Japan’s Companies Act defines four types of business entities. While all four are legally available, the vast majority of foreign entrepreneurs choose between the two most common structures: Kabushiki Kaisha and Godo Kaisha.

Kabushiki Kaisha (KK) — Joint Stock Company

The Kabushiki Kaisha is Japan’s most recognized corporate structure, equivalent to a corporation or joint stock company in Western legal systems. It has existed since 1873 and carries significant prestige in Japanese business culture. When you see “株式会社” or “Co., Ltd.” after a company name in Japan, that indicates a KK.

In a KK, shareholders invest capital in exchange for shares, with liability limited to their investment amount. The company must have at least one representative director, though there is no residency requirement for this position. For companies planning to raise outside investment, issue stock options, or potentially pursue an eventual public listing, the KK structure is essential.

The KK requires more formal governance than other structures, including annual shareholder meetings to approve financial statements. Companies with larger capitalization may need to appoint statutory auditors or establish a board of directors.

Godo Kaisha (GK) — Limited Liability Company

The Godo Kaisha was introduced in 2006, modeled after the American LLC structure. It offers limited liability protection similar to a KK but with simpler governance requirements and lower setup costs. In Japanese, you will see “合同会社” or “LLC” after these company names.

A GK unifies ownership and management, meaning members (the equivalent of shareholders) typically manage the business directly. There are no requirements for annual shareholder meetings, statutory auditors, or public disclosure of financial statements. This makes the GK attractive for small to medium-sized businesses, sole proprietors, and companies without plans for external investment.

Notably, several major American technology companies operate their Japanese subsidiaries as Godo Kaisha, including Apple Japan, Amazon Japan, and Google Japan. For U.S. parent companies, the GK structure can offer tax advantages because it may be treated as a pass-through entity under American tax law.

One practical advantage for foreign founders: a GK does not require capital to be deposited into a bank account before incorporation. The representative member can simply issue a receipt for the investment funds. This simplifies the process for non-residents who may face challenges opening a Japanese bank account before their company exists.

Gomei Kaisha — General Partnership

A Gomei Kaisha is a general partnership where all partners have unlimited liability for company debts. This means personal assets can be seized if the business cannot pay its obligations. Due to this high risk, the Gomei Kaisha is rarely chosen by modern businesses or foreign investors.

Goshi Kaisha — Limited Partnership

The Goshi Kaisha combines general partners (with unlimited liability) and limited partners (whose liability is capped at their capital contribution). While this structure offers some flexibility, the unlimited liability exposure for general partners makes it unpopular. Before the 2006 Companies Act eliminated minimum capital requirements for KK and GK structures, the Goshi Kaisha had some appeal for entrepreneurs with limited funds, but that advantage no longer exists.

These figures cover government fees and require notarization only. Professional fees for bilingual incorporation support typically add ¥100,000–¥600,000 for a KK and ¥30,000–¥300,000 for a GK, and most foreign-headquartered companies will incur these costs.

Which Structure Should You Choose?

For most foreign entrepreneurs, the decision comes down to KK versus GK Choose a KK if you plan to raise outside investment, need maximum credibility with Japanese banks and corporate clients, or might eventually want to sell the company or go public. Choose a GK if you prioritize lower costs, simpler operations, and have no plans for external fundraising.

Both structures are equally valid for obtaining a Business Manager visa, and both receive identical tax treatment under Japanese corporate tax law.

Two Paths to Setting Up in Japan: Self-Directed vs Professionally Managed

Before getting into the visa rules and step-by-step process, it helps to recognise that foreign-owned companies typically take one of two paths into Japan. The right path for you shapes everything that follows: how much you pay in professional fees, whether you need a visa at all, and how involved you will be in day-to-day operations.

This guide is written primarily with the first path in mind, where the founder takes a hands-on, cost-conscious approach. If your situation matches the second path, the incorporation steps still apply, but the visa section and some operational sections will not be relevant to you in the same way.

Path One: The Self-Directed Founder

This is the path for individual entrepreneurs and small business owners who want to set up a Japanese company themselves and personally run it from Japan. The goal is usually to keep professional fees as low as possible, learn the system first-hand, and build the business with the founder on the ground.

People on this path typically handle much of the documentation themselves, work with a single administrative scrivener for the parts that legally require one, and apply for a Business Manager visa so they can live in Japan and manage the company. The cost savings are real, but the time investment is significant, and the founder needs to meet the updated visa requirements personally, including the ¥30 million capital threshold and the staff hiring rule introduced in October 2025.

Path Two: The Established Foreign Company Expanding to Japan

This is the path for businesses that already operate elsewhere and want to open a Japanese subsidiary or branch without sending a founder to live in Tokyo. Speed, simplicity, and reducing the burden on headquarters tend to matter more than saving on professional fees.

Companies on this path usually hire a bilingual incorporation firm to manage the entire process from end to end. They appoint a locally-based representative director, often a hired Japanese executive or, in the early stages, a nominee director provided by their service partner. Because the person managing the entity in Japan is already authorized to work there, the Business Manager visa rules do not apply. Headquarters can run the Japanese operation remotely, supported by a local accounting and tax firm that handles compliance and reports back in English.

Since 2015, Japanese law has allowed companies to be incorporated without any Japan-resident director, which made this path far more practical. In practice, however, banks, landlords, and many Japanese clients still expect to see a Japan-resident representative, so most foreign companies appoint one even though it is no longer legally required.

An example of one such business is Komoto Sato Legal & Tax Partners.

Comparing the Two Paths

Which Path Fits You

If you are a single founder planning to relocate to Tokyo and run the business yourself, the self-directed path described in the rest of this guide is built for you. If you represent a company that is hiring local management or appointing a representative director already living in Japan, you can skip the visa section entirely and focus on the company structure choice, the registration steps, and the ongoing operational support discussion. In that case, your most important early decision is choosing the right bilingual partner, because they will effectively run the Japan-side of your business until you are ready to hire your own local team.

Visa Options for Foreign Business Owners

If your Japan entity will be run by locally hired management or by a representative director who already has work authorization in Japan, none of the visa requirements below apply to you. The visa rules apply specifically to foreign nationals who intend to personally reside in Japan to manage the business.

While you can incorporate a company in Japan without living there, operating and managing that business typically requires appropriate residence status. The visa landscape for foreign entrepreneurs changed significantly in late 2025.

October 2025 Visa Reform: Japan revised and significantly increased Business Manager visa requirements effective October 16, 2025. The capital requirement increased sixfold, and new conditions around hiring, experience, and business plan verification now apply.

Business Manager Visa (経営・管理)

The Business Manager visa is the primary residence status for foreign nationals who intend to establish and operate a business in Japan.

While it is possible to incorporate a company without living in Japan, actively managing that business from within the country requires this visa status. In October 2025, the Immigration Services Agency of Japan (出入国在留管理庁) introduced significant reforms that increased financial thresholds and formalized eligibility standards for new applicants.

Current Requirements (Post-October 2025)

Under the revised framework, applicants must now demonstrate a substantially larger business scale than under the previous system.

Financial and Staffing Requirements

The minimum capital requirement is ¥30 million in paid-in capital or equivalent investment. For corporations such as a Kabushiki Kaisha (KK) or Godo Kaisha (GK), this typically means ¥30 million recorded in the company registry. For sole proprietors, immigration authorities assess the total financial scale of the business, including documented investment in premises, equipment, payroll, and operating costs. In practice, the business must reflect an investment level comparable to the corporate benchmark.

In addition to capital, the company must employ at least one full-time staff member. The employee must hold a residence status that permits unrestricted work in Japan, such as Japanese national, permanent resident, spouse of a Japanese national or permanent resident, or long-term resident. Capital alone is no longer sufficient; both financial scale and staffing requirements must be satisfied.

Professional and Operational Requirements

Applicants must also demonstrate professional capacity to manage a business. This is fulfilled by either:

• At least three years of business management experience, or
• A master’s degree or higher in a relevant field.

Japanese language ability is now formally incorporated into the assessment process. Either the applicant or the full-time employee must demonstrate Japanese proficiency broadly equivalent to JLPT N2 level or higher. This reflects the expectation that the business will be able to operate effectively within Japan’s regulatory and commercial environment.

A dedicated physical office is required. Home offices are generally no longer acceptable under the current framework. The premises must be commercially appropriate and supported by a formal lease agreement. Co-working spaces may be permitted where they provide genuine operational capacity rather than a virtual address only.

Finally, the business plan must be reviewed by a qualified professional such as a certified public accountant, licensed tax accountant, or registered consultant to confirm the viability and legitimacy of the proposed business activity.

Transition Period for Existing Visa Holders

Applicants who obtained a Business Manager visa before October 16, 2025 are subject to a transitional review period extending until October 16, 2028. Renewal applications during this period are evaluated based on actual business performance, compliance history, and progress toward meeting the updated standards.

However, all new applications filed after October 16, 2025 must comply fully with the revised requirements. Applications for Permanent Residency or Highly Skilled Professional status are also assessed under the current rules regardless of when the original Business Manager visa was issued.

If approved, the Business Manager visa is typically granted for one, three, or five years and is renewable provided the business continues to meet operational and compliance standards.

Because immigration practice evolves through administrative guidance and case-by-case assessment, applicants should confirm current criteria directly with the Immigration Services Agency of Japan or a licensed administrative scrivener before submitting an application.

Startup Visa (起業準備活動)

Japan expanded its Startup Visa program nationwide in January 2025, creating a more accessible pathway for entrepreneurs who are not yet ready to meet the full Business Manager visa requirements. This visa allows foreign founders to reside in Japan for up to two years while preparing their business.

The Startup Visa does not require you to immediately have ¥30 million in capital, a physical office, or employees. Instead, you submit a business plan to an approved municipal organization, which evaluates your proposal and provides support during the preparation phase.

Crucially, time spent under the Startup Visa now counts toward the three-year management experience requirement for the Business Manager visa. This makes the Startup Visa a practical stepping stone for entrepreneurs who need time to build their business foundations, secure funding, and establish local networks.

Applications are processed through certified Foreign Entrepreneurship Support Organizations designated by local governments throughout Japan. Tokyo, Fukuoka, Kobe, and dozens of other municipalities offer this program, each with their own support systems and industry focuses.

Highly Skilled Professional Visa

The Highly Skilled Professional (HSP) visa uses a points-based system considering education, professional experience, and income. For business managers, this visa can offer advantages including a faster path to permanent residency, ability to engage in multiple business activities, and permission for domestic workers and parents to accompany the visa holder.

Under the HSP points system, accumulating 80 points allows permanent residency application after just one year in Japan, while 70 points enables application after three years. However, applicants must still meet the standard Business Manager requirements at the time of examination.

For remote workers and freelancers not planning to establish a formal business entity, Japan’s Digital Nomad Visa offers an alternative pathway to live and work in the country for up to six months while earning: learn more in our guide to Japan’s Digital Nomad Visa

Step-by-Step Guide to Registering (Incorporating) a Company in Japan

The incorporation process in Japan follows a structured sequence regardless of whether you are forming a KK or GK. The steps below apply whether you are filing yourself or working through a local bilingual firm, the difference is who handles each step, not what the steps are.

1. Plan and Prepare Documents

Begin by determining your company name, registered address, business purpose, fiscal year, and capital amount. The company name must be unique within the same jurisdiction and cannot duplicate existing registered trade names at the same address.

You will need to draft Articles of Incorporation (定款) in Japanese. This foundational document outlines the company’s rules, structure, and operating principles. For a KK, the articles must be notarized; for a GK, notarization is not required.

Commission a set of company seals (inkan), which are essential for virtually all business transactions in Japan. A typical corporate seal set includes three stamps: the representative director seal for official documents, a bank seal for financial transactions, and a square seal for general correspondence. Budget approximately ¥10,000 to ¥30,000 for a quality seal set.

Additional Requirements for Non-Residents

For foreigners living outside Japan, the documentation requirements differ significantly from domestic cases. Japanese residents can register their personal seal (hanko) at their local municipal government, but non-residents cannot. Instead, you must obtain signature certificates from a notary office in your home country, along with apostilles to authenticate these documents for use in Japan.

All foreign-language documents require certified Japanese translation. You will need to hire a judicial scrivener experienced in handling foreign notarial documents, apostilles, and translations. This additional complexity means the preparation phase takes considerably longer than for domestic founders, often several weeks rather than days.

This preparation phase typically takes one to three days with professional assistance for Japan-based founders, but several weeks for non-residents due to international document requirements.

2. Notarize Articles of Incorporation (KK Only)

For a Kabushiki Kaisha, the Articles of Incorporation must be certified by a notary public. Fees range from ¥30,000 to ¥50,000 depending on capital amount. The fee was reduced in 2022, with companies having less than ¥1 million in capital paying approximately ¥30,000.

Godo Kaisha formations skip this step entirely, which contributes to their lower cost and faster timeline.

3. Deposit Capital

For a KK, Japanese law requires capital to be deposited into a bank account before registration. This typically means depositing funds into a personal account (often the founding director’s) and obtaining a certificate of deposit or bank statement showing the transfer.

For foreign founders, this can present challenges since opening a Japanese bank account often requires residence status. Some service providers offer Resident Representative Services, where a Japanese representative temporarily holds the capital funds as proof of domestic deposit.

A GK does not legally require a bank deposit. The representative member can issue a receipt for the investment funds, making this structure more practical for remote incorporation by non-residents.

4. Register at the Legal Affairs Bureau

Submit all incorporation documents to the Legal Affairs Bureau (法務局) that has jurisdiction over your company’s registered address. Required documents include the Articles of Incorporation, capital deposit certificate, information about representative directors or members, and the company seal registration.

The registration tax is paid at this time: ¥150,000 minimum for a KK (or 0.7% of capital if higher) and ¥60,000 minimum for a GK Electronic filing can save the ¥40,000 stamp duty that applies to paper submissions.

Processing typically takes about three business days if all documents are correct. You will receive the Certificate of Incorporation (登記事項証明書) and corporate seal registration certificate upon completion.

5. Post-Registration Notifications

Within two months of establishment, submit the Corporate Establishment Notification (法人設立届出書) to the local tax office. If your company will pay salaries, also file the Payroll Office Opening Notification.

Your company will automatically receive a 13-digit Corporate Number (法人番号) upon registration, which serves as your tax identification number for all official filings.

Register with the local pension office for health insurance and pension enrollment within five days of beginning operations. All Japanese corporations must enroll in social insurance systems, even single-person companies where the founder draws a salary.

6. Open a Corporate Bank Account

After registration, open a corporate bank account for business transactions. This step often proves challenging for newly established foreign-owned companies.

Japan’s major banks, including Mizuho, MUFG (Bank of Tokyo-Mitsubishi UFJ), and SMBC (Sumitomo Mitsui Banking Corporation), are known for their thorough due diligence on new corporate accounts. Having a Japanese resident with Japanese nationality as a director or officer significantly improves your chances of approval. Banks prefer representatives they can easily access and communicate with due to anti-money laundering regulations.

Larger banks offer more convenient services for business operations, including online banking, automatic withdrawals, and integration with accounting software. If major banks prove difficult, consider net banks such as Rakuten Bank or PayPay Bank, or regional banks such as Resona Bank or Shinsei Bank, which can be easier to be approved as a newly incorporated or foreign-owned entities.

Be aware that a bank rejection is typically logged in the bank’s internal system, making future applications to that institution extremely difficult regardless of how circumstances change. This makes it essential to have all documentation complete and credible before submitting your first application.

Once your Articles of Incorporation are registered with the Legal Affairs Bureau and any required licenses are obtained, your company is legally authorized to begin operations in Japan.

Many foreign founders and companies choose to engage a bilingual professional firm to handle some or all of the steps above. This is the standard approach for established companies expanding into Japan, and it is also a sensible choice for solo founders who would rather focus on their business than navigate Japanese bureaucracy. Firms such as Komoto Sato Legal & Tax Partners provide this kind of end-to-end support for market entry.

Costs and Timelines

Understanding the full financial picture helps you budget appropriately for your Japan market entry.

Registration Costs

These figures exclude capital investment itself. While there is no legal minimum capital requirement (even ¥1 is technically possible), practical considerations around banking, visa applications, and business credibility make ¥1 million a reasonable floor for most operations. For Business Manager visa applicants, ¥30 million is now the required threshold as a foreigner.

A Note on Cost Expectations

The registration costs above represent one-time fees to create your legal entity. For foreign entrepreneurs evaluating Japan market entry, these figures are often less important than ongoing operational costs and whether the business can realistically break even.

Before committing to incorporation, work with a bilingual professional to estimate your true monthly operating costs, including staff, office space, accounting and compliance services, and any industry-specific expenses. A qualified local partner can help you build realistic revenue projections based on actual market conditions rather than assumptions made from overseas.

Typical Timelines

A straightforward GK incorporation with professional assistance typically completes in two to four weeks from start to finish. The KK process takes approximately three to five weeks due to the additional notarization step. In peak filing seasons, processing may take longer.

Administrative scrivener services can expedite the process by handling steps in parallel, with some providers advertising GK formation in as little as seven business days. Japan’s government one-stop online service also allows electronic document certification and filing, potentially reducing delays further.

Ongoing Operational Costs

After incorporation, the real ongoing expense for foreign-owned companies is bilingual professional support. Simply creating a legal entity on paper does not mean you have started a functioning business in Japan. You need a local bilingual professional who can continuously support your operations from a strategic standpoint. For companies on the expansion path that are not sending a founder to live in Japan, this partner takes on an even larger role, effectively serving as the company’s eyes, ears, and operational presence on the ground until local staff are hired.

The most significant recurring cost is business reporting, where someone in Japan must maintain monthly accounting under Japanese laws and accounting standards, then create profit and loss reports in a format your headquarters can use. The challenge is doing local work in Japanese while reporting in English, Chinese, or another language. This requires a firm with genuine bilingual capability, not just translation services.

Budget ¥50,000 to ¥200,000 monthly for a qualified accounting firm that can maintain Japanese-compliant books while providing financial reports in your company’s working language. This varies based on transaction volume, reporting complexity, and the level of strategic advisory support you require.

Before incorporating, work with your local partner to develop realistic revenue and cost estimates. Foreign entrepreneurs are often more interested in whether they can break even than in the mechanics of registration. A good bilingual accountant or lawyer can help you model these figures accurately, factoring in costs that may not be obvious from outside Japan.

Additional ongoing expenses include corporate tax filing, social insurance contributions, and any required business licenses. Companies must also pay minimum local taxes regardless of profitability, with amounts varying by municipality and capital level.

Office Space Requirements

All Japanese companies require a registered business address. For founders applying for a Business Manager visa under the new rules, a dedicated physical office space is mandatory since home offices are no longer permitted. For established foreign companies that are not sponsoring a Business Manager visa, the office requirements are more flexible. A virtual office or co-working address is generally accepted by the Legal Affairs Bureau for company registration, and many foreign-owned subsidiaries operate this way until they hire local staff. Be aware that banks often scrutinize virtual addresses more closely during account opening, and regulated industries such as food service, beauty, manufacturing, and financial services require a dedicated physical space.

Options range from virtual office services (starting around ¥15,000 to ¥45,000 monthly) for non-visa purposes, to co-working spaces (¥40,000 to ¥90,000 per person monthly), to traditional office leases in Tokyo business districts with varying monthly costs depending on location and size (¥100,000-¥500,000 for small up to 5 people offices to upwards of ¥10,000,000 for large offices)

For companies planning to apply for business licenses or sponsor visa applications, the office address should be in a commercial building supported by a proper lease agreement. Residential addresses generally do not satisfy requirements for regulated activities.

Investing in Tokyo Real Estate

Establishing a business in Japan often begins with securing the right address. Housing Japan advises foreign entrepreneurs and investors on purchasing entire office buildings, investment properties, and luxury residences in central Tokyo. If you are relocating or investing alongside your company formation, speak with our team for strategic property guidance.

Professional Support for Market Entry

Japan’s incorporation process involves Japanese-language documentation, specific procedural requirements, and interaction with multiple government agencies. While technically possible to complete independently, most foreign entrepreneurs benefit from professional assistance, both for initial setup and ongoing operations.

For incorporation, administrative scriveners (行政書士) handle visa applications and business licensing, while judicial scriveners (司法書士) manage company registration with the Legal Affairs Bureau. These professionals typically charge one-time fees for specific filings.

However, the more important decision is choosing a bilingual firm for ongoing operational support. This partner handles your monthly accounting, tax compliance, regulatory filings, and financial reporting to your overseas headquarters. They become your eyes and ears on the ground, helping you navigate issues as they arise and ensuring your business remains compliant with Japanese requirements.

When selecting an ongoing partner, look for firms that offer accounting and bookkeeping under Japanese standards, tax filing and compliance monitoring, bilingual reporting in your headquarters’ working language, and strategic advisory support for business decisions. The right firm will help you understand your true operating costs before you incorporate, not just process paperwork afterward.

For comprehensive market entry support covering company establishment, visa acquisition, accounting, and ongoing compliance, firms such as Komoto Sato Legal & Tax Partners provide one-stop services with English-speaking lawyers, tax accountants, and administrative specialists. Their team supports foreign-affiliated companies from initial incorporation through ongoing operations, including the bilingual accounting and reporting that foreign headquarters require.

Common Mistakes to Avoid

Several pitfalls frequently catch foreign entrepreneurs during the incorporation process.

Underestimating capital requirements for banking: While legal minimum capital is technically ¥1, banks view companies with stated capital below ¥1 million as high-risk. This can result in bank account rejection regardless of how legitimate your business is.

Assuming business registration equals licensing: Having your Articles of Incorporation accepted by the Legal Affairs Bureau does not automatically authorize you to conduct all listed business activities. Certain industries, including food service, real estate, financial services, alcohol sales, and import/export of regulated goods, require separate government licenses. Companies may exist legally on paper while being unable to operate until proper permits are obtained.

Submitting incomplete bank applications: Bank rejection is typically permanent for that institution. Ensure all documentation is complete, your representative is credible and accessible, and your business activities align with any stated objectives before applying.

Neglecting post-incorporation obligations: Missing tax notification deadlines, failing to enroll in social insurance, or not properly maintaining corporate records can create compliance problems that affect visa renewals and banking relationships.

Frequently Asked Questions

Can I start a business in Japan without living there?

Yes. Since 2015, no director needs to be a Japanese resident to incorporate a KK or GK. You will need to file a Foreign Exchange Act notification through the Bank of Japan. A GK is easier to set up remotely than a KK, since it does not require capital to be deposited in a Japanese bank account before registration.

Do I need to live in Japan to run my Japanese company?

No. Many foreign companies run their Japanese subsidiaries from headquarters overseas, with day-to-day management handled by a locally-hired representative director. The Business Manager visa rules only apply if a foreign national wants to personally reside in Japan to manage the business. A bilingual accounting firm typically handles ongoing compliance.

Which is better, KK or GK?

Neither is inherently better; the right choice depends on your objectives. A KK offers more prestige, the ability to issue shares and raise equity, and familiarity to Japanese banks and corporate partners. A GK costs less, requires simpler governance, and can be established without a Japanese bank account. Both provide limited liability and receive identical tax treatment. For most small businesses without external investment plans, a GK is practical and sufficient but may be limiting as the business grows.

Can I convert a GK to a KK later?

Yes, Japanese law permits reorganization from GK to KK through a prescribed procedure involving a reorganization plan, unanimous member consent, creditor notifications, and registration of both the dissolved GK and newly established KK The process takes approximately six weeks and involves additional registration fees.

Do I need to speak Japanese to run a business in Japan?

For Business Manager visa applications under the new rules, Japanese language proficiency equivalent to JLPT N2 is required for either the applicant or a full-time employee. For daily business operations, foreign entrepreneurs can operate successfully with limited Japanese, though having Japanese-speaking staff or partners significantly simplifies interactions with government agencies, banks, and local clients.

What taxes will my Japanese company pay?

Japanese corporations face multiple tax layers. National corporate tax is 23.2% of taxable income, with small and medium enterprises benefiting from a reduced 15% rate on income up to ¥8 million. Local corporate tax adds 10.3% of the national tax amount. Prefectural and municipal enterprise taxes vary by location, typically 3-7% of income. The effective combined rate for most companies falls between 30-33%. Consumption tax (VAT) is 10% on goods and services. A new 4% defense special corporate tax surcharge takes effect from April 2026.

How long does the Business Manager visa application take in Japan?

Processing times vary but typically expect one to three months from submission to decision. The Certificate of Eligibility process (for applicants outside Japan) generally takes longer than change of status applications (for those already in Japan on another visa). Under the new rules, applications require more documentation including professionally certified business plans, which may extend preparation time.

What is the Japanese Startup Visa and who should use it?

The Startup Visa allows foreign entrepreneurs to reside in Japan for up to two years while preparing to meet Business Manager visa requirements. It is ideal for founders who need time to develop their business plan, secure funding, build local networks, or accumulate management experience before committing ¥30 million in capital and hiring staff. Time spent under this visa counts toward the three-year management experience requirement.

Next Steps

Starting a business in Japan requires careful planning, particularly given the significantly higher barriers introduced by the October 2025 visa reforms. For entrepreneurs serious about entering the Japanese market, consider the following approach.

First, determine whether you need to live in Japan to run your business. If yes, assess whether you meet the current Business Manager visa requirements or would benefit from starting with a Startup Visa to build your foundation over one to two years.

Second, choose between KK and GK based on your funding plans and long-term objectives. If outside investment is part of your strategy, the KK structure is likely necessary regardless of its higher setup costs.

Third, engage qualified professional support early in the process. The complexity of Japanese bureaucracy, language requirements, and the irreversible nature of certain mistakes (particularly bank account rejections) makes experienced guidance valuable.

Finally, budget realistically. Between capital requirements, registration costs, office space, professional fees, and initial operating expenses, entering Japan as a visa-holding business owner now represents a substantial financial commitment. Understanding these costs upfront allows for proper planning and resource allocation.

About Housing Japan

Housing Japan specializes in buying, selling, and managing residential luxury real estate in central Tokyo. Whether you are relocating for business, seeking investment opportunities, or establishing a new venture in Japan, our team provides comprehensive support for your real estate needs. From finding the right commercial office space to securing luxury residential accommodations, we help foreign professionals and entrepreneurs navigate Tokyo’s property market with confidence.

Disclaimer: This article is intended for general informational purposes only and does not constitute legal, tax, or immigration advice. Requirements reflect policy updates announced by the Immigration Services Agency of Japan as of October 2025. Applicants should confirm current criteria before applying. It is recommended to consult with qualified professionals such as licensed administrative scriveners, tax accountants, or immigration lawyers before making business or visa decisions.

In early 2026, the average existing apartment in the Greater Tokyo Area sold for around ¥54.58 million (about ¥856,100 per square meter), according to REINS Market Watch data. New apartments in central Tokyo often exceed ¥120 million. A penthouse in a prime location, Azabudai Hills, sold for a record price of ¥20 billion. Rental costs typically range from a low of ¥85,000 for a studio to over ¥500,000 for a family unit in central wards.

Tokyo Apartment Prices in 2026: A Market Overview

The Tokyo apartment market has continued its long upward run into 2026. Greater Tokyo existing condominium prices have now risen for 70 consecutive months, and the Ministry of Land, Infrastructure, Transport and Tourism (MLIT) reported its 2026 Land Price Survey on March 17, 2026, showing the strongest annual increase since 1992.

For 2026, MLIT data shows that residential land in Tokyo’s 23 wards rose by an average of 9.0% year on year. The five central wards, Chiyoda, Chuo, Minato, Shinjuku, and Shibuya, averaged 13.0%, while the remaining 18 wards averaged 8.5%. This means central Tokyo is pulling away from outer areas in price growth, even though both are rising.

The most expensive residential land point in the country sits in Akasaka, Minato ward, priced at ¥7,110,000 per square meter in the 2026 MLIT survey. This marked the ninth consecutive year that Akasaka held the top position.

Apartment prices reflect both rising land values and higher construction costs. Demand from domestic buyers, returning expats, and international investors has stayed strong, while new supply remains tight.

How Much Does It Cost to Buy an Apartment in Tokyo?

The cost of buying an apartment in Tokyo depends mostly on three things: the ward, the size of the unit, and how new the building is. In 2026, an entry-level studio in an outer ward starts around ¥25 to ¥40 million, a typical two-bedroom in a central ward sits in the ¥80 to ¥150 million range, and luxury units in prime locations can reach the multi-billion-yen mark.

Average Apartment Prices Across Tokyo

The average price for an existing apartment in the Greater Tokyo Area reached ¥54.58 million in February 2026, up 9.5% year on year. The average price per square meter climbed to ¥856,100, marking 70 straight months of rising prices.

In Tokyo’s 23 wards specifically, prices are noticeably higher. Existing apartments in the 23 wards average around ¥1.4 to ¥1.5 million per square meter, while new apartments in central locations regularly exceed ¥2 million per square meter.

Typical Apartment Price Ranges by Type (2026)

These ranges reflect existing condominium stock in central and well-connected outer wards. New-build prices typically run 25 to 40 percent higher than existing units of the same size, driven by rising labor and material costs.

The Gap Between Central and Outer Wards

Within Tokyo’s 23 wards, the price gap is striking. According to MLIT-derived market data, the average price per square meter in Minato, Chiyoda, and Chuo can reach ¥2.3 to ¥4.5 million, while outer wards like Edogawa, Katsushika, and Adachi average ¥0.7 to ¥1.1 million per square meter. This gives the most expensive ward roughly four times the price of the cheapest on a per-square-meter basis.

Why Are Tokyo Apartment Prices Still Rising in 2026?

Several factors keep Tokyo apartment prices on an upward path:

1. Limited new supply. New condominium releases in the Greater Tokyo Area have fallen, with developers pulling back on starts because of higher construction costs. With less new product coming to market, buyers are pushed toward the existing market, lifting prices there too.
2. Higher construction costs. Material and labor costs have risen sharply over the past three years. This pressure feeds directly into both new-build pricing and the replacement value of existing stock.
3. Major redevelopment projects. Ongoing projects like Shibuya Station Redevelopment, Takanawa Gateway City, and the Tsukiji Redevelopment are creating new commercial and residential capacity that lifts surrounding values. The Shibuya Sakuragaoka area alone rose 29% in the 2026 MLIT survey thanks to redevelopment.
4. Sustained foreign and domestic demand. Tokyo continues to draw both Japanese buyers moving from suburbs back into the city and international purchasers attracted by a weak yen and stable property rights.

Source: Tokyo Condo Prices and Sales Keep Rising in 2026 (Updated) | Housing Japan

How Properties Near Stations Command Premium Prices

In Tokyo, walking distance to the nearest train station is one of the strongest single drivers of apartment value. A property within five minutes of a major station can be priced 10 to 30 percent higher than a comparable unit a 15-minute walk away.

Japanese real estate listings follow a national rule that defines walking time precisely: one minute equals 80 meters of road distance, with any partial minute rounded up. This standard is set under the Fair Competition Codes Concerning Representation of Real Estate, which means buyers and renters can compare listings on a like-for-like basis.

The pricing curve generally falls into three zones. Apartments under five minutes from a station are the most sought after and hold their value. The five-to-ten-minute range can be seen as a good compromise, close enough for convenience without the noise and congestion of being next to the station. Beyond 15 minutes, prices and rents drop noticeably.

For buyers thinking long-term, station proximity also helps with resale and rental demand. Tenants and buyers in Tokyo strongly prefer short walks, which means apartments near major stations on the Yamanote Line, the Tokyo Metro Hibiya Line, or the Toei Oedo Line tend to maintain their value better than equivalent units further out.

Central Tokyo Apartments: Why Prime Locations Demand a Premium

Central Tokyo refers to the five central wards: Chiyoda, Chuo, Minato, Shinjuku, and Shibuya. These wards saw an average residential land price increase of 13.0% in the 2026 MLIT survey, the strongest growth in the city.

Within these wards, the highest growth came from Konan in Minato (+22.2%), Hongo in Bunkyo (+20.8%), and Akasaka in Minato (+20.5%). These are all neighborhoods with strong condominium demand and limited buildable land.

Why the premium? Three reasons stand out:

The first is access. Central Tokyo apartments put residents within walking distance of major business districts, embassies, international schools, and luxury retail. A 10-minute train ride covers most of what a typical resident needs.

The second is brand value. Buildings in areas like Azabu, Hiroo, Aoyama, and Shirokane carry a recognized prestige that supports both purchase prices and rental rates. Brand-name developers such as Mitsui Fudosan Residential, Mitsubishi Estate Residence, and Mori Building have built reputations over decades, and their developments tend to hold value.

The third is scarcity. Land in central Tokyo is genuinely limited, and very little new supply enters the market each year. The combination of high demand and tight supply creates persistent upward pressure on prices.

Luxury Condos and Penthouses in Tokyo’s Prime Locations

Tokyo’s luxury apartment market has expanded sharply since 2023, driven by a wave of new ultra-premium developments and growing interest from both Japanese tech founders and overseas buyers. Luxury properties now typically range from ¥250 million to ¥1.5 billion, with the very top of the market reaching multi-billion yen prices.

Azabudai Hills and Aman Residences Tokyo

Azabudai Hills, completed in late 2023 by Mori Building, set a new benchmark for the Tokyo luxury market. The 330-meter Mori JP Tower at its center is currently Japan’s tallest building, and its top 11 floors house Aman Residences Tokyo, a collection of 91 branded residences.

A penthouse at Azabudai Hills reportedly sold for around ¥20 billion, the highest price ever recorded for a Japanese apartment. The unit spans roughly 1,500 square meters across the top floor and comes with hotel-grade services from the on-site Janu Tokyo and Aman.

Contact Housing Japan for Tokyo exclusive off market listings!

Toranomon Hills Residential Tower

Toranomon Hills Residential Tower, also developed by Mori Building, is a 54-story luxury tower located within the broader Toranomon Hills development. Residents access spas, fitness facilities, an international preschool, a bilingual clinic, and 24-hour concierge service. Units come with floor heating, washer-dryers, and dishwashers as standard. The development sits inside Tokyo’s “Special Zone for Asian Headquarters,” reflecting its central position in the redeveloped Toranomon district.

Contact Housing Japan for exclusive Tokyo off market listings!

The Kita in Shibuya

The Kita, designed by award-winning architect Kengo Kuma, is a boutique luxury residence in Shibuya ward. A 507-square-meter penthouse at The Kita, featuring a private rooftop infinity pool with views over the Meiji Shrine forest, sold for approximately ¥7.1 billion to an overseas buyer.

Mita Garden Hills

Mita Garden Hills, developed jointly by Mitsui Fudosan Residential and Mitsubishi Estate Residence, sits on the former site of the Ministry of Communications in central Minato ward. The 1,002-unit project covers seven buildings, Park Mansion, West Hill, East Hill, North Hill, Centre Hill, South Hill, and Villas, across roughly 7,000 square meters of landscaped grounds. It was the first Garden Hills development in central Tokyo since Hiroo Garden Hills opened 38 years earlier.

What Defines a Luxury Apartment in Tokyo?

Luxury apartments in Tokyo typically share a few characteristics. They occupy 100 square meters or more, sit in prime addresses across Minato, Shibuya, or Chiyoda, come with bilingual concierge service, and offer premium fittings such as floor heating, walk-in closets, and high-grade appliances. Many also provide access to spas, fitness centers, guest suites, and valet parking.

For a fuller picture, see Housing Japan’s existing coverage of Tokyo’s luxury market, including regular mark analysis with articles like Tokyo Condo Prices and Sales Keep Rising in 2026 and special development deep dives such as Mita Garden Hills: Tokyo’s New Luxury Standard in Azabu and The Tsukiji Redevelopment: Tokyo Fish Market to Mega Development.

How Much Does It Cost to Rent an Apartment in Tokyo?

Rental costs in Tokyo follow the same pattern as purchase prices: central wards command much higher rents than outer areas, and proximity to a station adds a significant premium. As of early 2026, the rental market in Tokyo’s 23 wards has been growing year on year for 26 straight months.

Average Rental Costs by Apartment Type (Tokyo 23 Wards, 2026)

Across the 23 wards, the average rent reached approximately ¥4,237 per square meter in early 2024, with central five wards averaging closer to ¥5,027 per square meter. Rents have risen further into 2026, with industry data suggesting an additional 6.5% to 8.2% growth year on year.

Rental Costs in Central Wards

Central Tokyo wards lead the rental market by a wide margin:

• Minato-ku: Studios typically start around ¥110,000, with 1LDKs from ¥200,000 and family-size 2LDK units regularly above ¥400,000.
• Chiyoda-ku: Studios average around ¥114,000, and 1LDKs sit around ¥227,000.
• Chuo-ku: Similar to Chiyoda, with studios in the ¥110,000 to ¥130,000 range.
• Shibuya-ku: Premium lifestyle hub with one-bedrooms generally between ¥150,000 and ¥250,000.
• Shinjuku-ku: Lower prices can be seen away from stations but still well above the city average.

Initial Rental Costs to Plan For

Beyond the monthly rent, Tokyo apartments come with several upfront costs that international renters often find surprising. These typically add up to four to six months’ rent and include:

Key money (reikin), often one to two months’ rent, paid to the landlord and not refunded. Deposit (shikikin), one to two months’ rent, refundable subject to the condition of the apartment when you leave. Agency fee, typically one month’s rent. Renter’s insurance, usually around ¥15,000 to ¥20,000 per year. Guarantor company fees if you do not have a personal guarantor in Japan.

Maintenance fees (kanrihi) for shared building facilities and utilities are paid separately on top of the base rent.

Smaller Apartments and Outer Wards: Cheaper Options

Not every part of Tokyo carries central-ward pricing. Outer wards offer real value, especially for buyers and renters willing to trade a few extra minutes of commute time for more space.

In wards like Edogawa, Katsushika, and Adachi, new apartments often run between ¥400,000 and ¥500,000 per square meter, and complete units can be found between ¥28 and ¥35 million. Rentals in these areas can be 30 to 40 percent cheaper than equivalent units in central wards.

Setagaya and Suginami sit in the middle ground. They are popular family wards offering more space, good school districts, and quieter streets, while still keeping commute times to Shinjuku or Shibuya around 20 minutes by train. A 2LDK in Setagaya might rent for around ¥188,000, compared with ¥350,000 or more for the same layout in Minato.

These cheaper apartments do come with compromises however, such as further distance to Stations, longer commutes and usually older buildings.

What Apartment Sizes Are Common in Tokyo?

Apartment sizes in Tokyo are smaller than buyers from North America or Europe usually expect. According to MLIT housing guidelines, a single person living in a city should have at least 25 square meters for a healthy and culturally fulfilling life, with 40 square meters considered ideal. For a family of five, MLIT recommends approximately 95 to 115 square meters of floor space.

In practice, many central Tokyo studios fall under the 25 square meter recommendation, reflecting how scarce land affects what gets built. A typical one-bedroom (1LDK) ranges from 30 to 50 square meters, a two-bedroom (2LDK) from 50 to 70 square meters, and a three-bedroom (3LDK) from 70 to 100 square meters. The average floor area of an existing condo that sold in February 2026 was 63.75 square meters, which corresponds to a standard two-bedroom layout.

The Difference Between Apato and Manshon

In Japanese, two words describe residential apartment buildings, and the difference matters for both quality and price.

Apāto (アパート) are smaller buildings, often two to three stories, typically built with wood or light steel. They are common in outer wards and quieter residential neighborhoods. Apāto tend to be more affordable, but soundproofing, insulation, and amenities are usually limited.

Manshon (マンション), derived from the English word “mansion,” are modern reinforced concrete apartment buildings. These are the standard in central Tokyo and luxury residential areas. They offer better build quality, stronger soundproofing, and often include amenities like concierge services, parcel lockers, and fitness facilities. Most luxury and high-end condominiums in central Tokyo are manshon properties.

For buyers and renters in central Tokyo, especially those looking at premium addresses, manshon properties are the standard.

Tokyo Apartment Prices: Buying vs Renting in 2026

Whether to buy or rent in Tokyo depends on how long you plan to stay, your access to financing, and your view on currency. A few useful reference points:

The average existing apartment in the Greater Tokyo Area sells for around ¥54.58 million as of February 2026, while a comparable two-bedroom rental in central Tokyo runs ¥250,000 to ¥350,000 per month. On those numbers, monthly rent payments add up quickly over several years, especially when factoring in upfront costs of four to six months’ rent.

Mortgage rates in Japan remain among the lowest in the developed world, though banks have signaled approximately 0.25% increases to variable-rate benchmarks in spring 2026. Foreign buyers without permanent residency face additional hurdles in financing, though some banks, including SMBC, SBI Shinsei, Aeon, Tokyo Star, and Suruga, have started accepting applications from non-permanent residents under specific conditions.

For longer-term residents and investors, buying typically makes more financial sense once a stay extends beyond five to seven years. For shorter stays, renting in a serviced or furnished apartment often works better.

Frequently Asked Questions About Tokyo Apartments

How much is an apartment in Tokyo in 2026?

The average existing apartment in the Greater Tokyo Area sold for around ¥54.58 million in early 2026, at an average of ¥856,100 per square meter. New apartments in central wards average over ¥120 million, while luxury units in prime locations regularly exceed ¥250 million.

What is the average price of an apartment in central Tokyo?

In Tokyo’s 23 wards, existing apartments average roughly ¥1.4 to ¥1.5 million per square meter. In the five central wards (Chiyoda, Chuo, Minato, Shinjuku, and Shibuya), per-square-meter prices commonly range from ¥2.3 to ¥4.5 million. A standard two-bedroom (around 65 square meters) in central Tokyo therefore typically sits between ¥150 million and ¥300 million.

How much does it cost to rent an apartment in Tokyo?

Rental costs across Tokyo’s 23 wards generally range from ¥85,000 for a studio to over ¥500,000 for a family-sized apartment. Central wards like Minato and Chiyoda command the highest rents, with one-bedrooms often above ¥200,000 per month.

Are apartments in Tokyo expensive?

Tokyo apartments are expensive compared with most other Japanese cities, but on a global scale Tokyo is more affordable than New York, London, or Hong Kong on a per-square-meter basis.

Can foreigners buy apartments in Tokyo?

Yes. Japan has no restrictions on foreign property ownership. Buyers of any nationality can purchase land and buildings in Japan, with no government approval process and no requirement to hold residency. Financing as a non-resident is more challenging but possible through a growing number of banks.

Why are Tokyo apartment prices going up?

Tokyo apartment prices have risen for 70 consecutive months due to four main factors: limited new supply, sharp increases in construction costs, ongoing major redevelopment projects, and sustained demand from both domestic and international buyers. The 2026 MLIT survey showed the strongest annual increase in residential land prices since 1992.

How much does a luxury apartment in Tokyo cost?

Luxury apartments in Tokyo typically range from ¥250 million to ¥1.5 billion. The top of the market goes much higher: a penthouse at Azabudai Hills reportedly sold for ¥20 billion, and a penthouse at The Kita in Shibuya sold for ¥7.1 billion. Pricing for specific luxury properties is generally available upon request through licensed agents.

Which Tokyo wards are most expensive?

Minato, Chiyoda, Chuo, and Shibuya are the most expensive wards in Tokyo for both buying and renting. Within those, the Akasaka, Roppongi, Azabu, Aoyama, and Hiroo neighborhoods consistently rank among the highest-priced addresses in Japan.

Do Tokyo apartments near stations cost more?

Yes. Apartments within five to seven minutes of a major train station typically cost 10 to 30 percent more than comparable units more than 15 minutes away. Station proximity is one of the strongest predictors of value in Tokyo, both for resale and for rental demand.

Looking to Buy or Rent an Apartment in Tokyo?

Whether you are looking for a luxury condominium, a family home, or a serviced apartment for an extended stay, Housing Japan can help. We specialize in buying, selling, and managing residential luxury real estate in central Tokyo, with a one-stop service that covers property search, transaction, and ongoing management. Contact us to discuss your needs or browse our current listings of Tokyo apartments for sale and Tokyo rentals.

Written by the Housing Japan Editorial Team – Licensed Real Estate Specialists in Central Tokyo with over 25 years of experience in luxury residential property.

sources: MLIT – Ministry of Land, Infrastructure, Transport and Tourism: https://www.mlit.go.jp (JP only)

What is included in a Japanese address?

A complete Japanese address contains seven elements that move from the broadest geographic area to the most specific point. Each part has a defined role under Japan’s national addressing system, which Japan Post and government agencies use to route mail and identify property.

The standard components are:

• Postal code (郵便番号 / yūbin bangō) — A seven-digit number written 123-4567 and preceded by the 〒 symbol. Japan Post assigns these nationwide.
• Prefecture (都道府県 / todōfuken) — One of Japan’s 47 prefectures, ending in -to, -dō, -fu, or -ken.
• Municipality (市町村 / shichōson) — The city, town, or village. In Tokyo, this level is replaced by one of the 23 special wards (ku).
• Neighborhood / town name (町 / machi or chō) — A named subdivision within the municipality, such as Roppongi or Azabudai.
• Chōme (丁目) — A numbered sub-district within the neighborhood.
• Banchi (番地) — The block number within the chōme.
• Gō (号) — The building number within the block. Apartments add a floor and unit number after this.

What does a Tokyo address look like?

Below is a real-world example of a Tokyo apartment address, written in the standard Japan Post English format. Each line corresponds to a specific level of the addressing hierarchy.

〒106-0032
Tokyo-to, Minato-ku, Azabudai, 1-8-15
Penthouse Apartments 18F-1805
(Recipient Name)

Reading top to bottom: the 〒 symbol marks the postal code; 106-0032 is the seven-digit code for Azabudai in Minato. Tokyo-to is the prefecture, Minato-ku is the ward, Azabudai is the neighborhood, and 1-8-15 represents chōme 1, banchi 8, gō 15. Penthouse Apartments is the building name, 18F is the floor, and 1805 is the unit number. The honorific sama is added after the recipient’s name for formal mail.

Example Addresses in Japan

Tokyo business and location addresses

Fictional Tokyo apartment addresses examples

Fictional addresses outside of Tokyo

How does each part of a Japanese address work?

Understanding what each component represents makes it much easier to read addresses on forms, packages, and property listings. The system is logical once you see how the layers fit together.

How does the Japanese postal code work?

Japan Post uses a seven-digit numeric postal code written in the format NNN-NNNN, preceded by the 〒 symbol. The first three digits identify a broad postal area served by a major distribution center, and the last four digits narrow this to a specific delivery zone such as a town, neighborhood, or block.

The first two digits also broadly correspond to the prefecture. Tokyo postal codes start with 10 through 20, while Osaka codes start with 53 through 59. For example, in postal code 105-0011, “10” places the address in Tokyo, “5” narrows it to a specific area, and “0011” identifies Shiba-kōen in Minato Ward.

Source: Japan Post – Postal Code Search

What are Japan’s prefectures (都道府県)?

Japan has 47 prefectures, which function as the country’s first level of regional government. They include 43 ken (県), two fu (府 — Osaka and Kyoto), one dō (道 — Hokkaido), and one to (都 — Tokyo). All four types have the same administrative role under the 1947 Local Autonomy Law; the different suffixes reflect historical status rather than any difference in power today.

On official documents, prefectures are usually written in kanji: Tokyo-to (東京都), Osaka-fu (大阪府), Kyoto-fu (京都府), Hokkaido (北海道), and 43 prefectures ending in -ken such as Kanagawa-ken (神奈川県) and Shizuoka-ken (静岡県).

What is a municipality (市町村)?

Below the prefecture, the next level is the municipality. Major cities use the suffix -shi (市), such as Yokohama-shi or Osaka-shi. Smaller towns use -machi (町) or -chō (町), and villages use -mura (村) or -son (村). Rural addresses sometimes include a county-level district (-gun / 郡) before the town or village name.

Why does Tokyo use wards (区) instead of a city?

Tokyo’s 23 central wards are not subdivisions of a city – each is its own municipality. Officially called tokubetsu-ku (特別区, special wards), they were created under the 1947 Local Autonomy Law after the wartime abolition of Tokyo City. Each has an elected mayor and ward assembly, and many now refer to themselves as “cities” in English (for example, Minato City, Shibuya City).

This is why Tokyo addresses use -ku (区) where addresses in Osaka or Yokohama would use -shi (市). Outside the 23 special wards, Tokyo Metropolis also contains 26 cities, 5 towns, and 8 villages to the west and on outlying islands.

What is a chōme (丁目)?

A chōme is a numbered sub-district within a named neighborhood. It is the first of three numeric levels that pinpoint a specific location. Chōme numbers are usually assigned starting near the center of the neighborhood and moving outward. For example, Roppongi 6-chōme is one of several chōme that together make up Roppongi in Minato Ward.

What is a banchi (番地)?

The banchi is the city block within a chōme. Banchi numbers were originally assigned in the order land was registered, so older neighborhoods can have blocks that do not run in a linear sequence, block 5 may sit next to block 12. This is why Japanese navigation often relies on landmarks, train stations, or maps rather than counting blocks.

What is a gō (号)?

The gō is the building number within a block. In the formal written form, the three numeric layers appear as 1丁目8番地15号 (1-chōme 8-banchi 15-gō). In everyday use, this is almost always shortened to 1-8-15. Apartment buildings then add the floor and unit, for example 1-8-15-1805.

How do you write a Japanese address correctly?

Japanese addresses are written largest to smallest in both Japanese and English. The order stays the same, only the script changes. Start with the postal code, then prefecture, ward or city, neighborhood, the numeric block (chōme-banchi-gō), building name, floor, unit number, and recipient at the end.

For handwritten formal Japanese letters and traditional envelopes, addresses are often written vertically rather than horizontally. The postal code goes in the small boxes at the top right of the envelope, the address runs top-to-bottom down the right side, and the recipient’s name sits in the center. Most everyday mail, business correspondence, and printed labels use horizontal writing today, but the vertical format still appears on formal cards and on traditional Japanese-style envelopes (和封筒 / wa-fūtō).

This top-to-bottom, largest-to-smallest order works for domestic Japanese mail, business cards, government forms, and contracts. For international mail being sent to Japan from abroad, many countries’ postal services expect smallest-to-largest order with “Japan” added at the end, but once the package arrives in Japan, it is more likely to arrive at its location with the largest-to-smallest layout.

How do you fill in a Japanese address on online forms?

Many Japanese websites split the address into separate fields for each component, postal code, prefecture, city or ward, neighborhood, and chōme-banchi-gō, rather than one long box. Enter each part in its own field exactly as it appears on your residence card or lease. Japanese e-commerce sites and government portals will often auto-fill the prefecture and city once you type the postal code, so the postal code is usually the first field.

For international online shopping sent to a Japan address, some sites accept romaji throughout while others require Japanese characters. If a form rejects romaji, copying your address in Japanese from your residence card or My Number card normally solves it. When in doubt, ask a Japanese speaker to confirm the format, incorrect input is the most common cause of delayed deliveries.

What are the most common mistakes when writing Japanese addresses?

A few errors come up repeatedly, most often when people first move to Japan or when international companies fill out shipping forms. Avoiding them prevents most delivery problems.

• Using Western order on a Japanese form. If a form is in Japanese, write the address from largest to smallest. Reversing it confuses postal sorting.
• Skipping the postal code. The seven-digit code is the single most important element for Japan Post’s automated sorting. Always include it, with the 〒 symbol when writing in Japanese.
• Leaving off the building name, floor, or unit. Apartments without a unit number frequently get returned or held at the local post office, especially in large towers.
• Mixing scripts inconsistently. For domestic Japanese mail, use Japanese characters for official place names. For international mail, use romaji throughout. Mixing the two mid-address can slow delivery.
• Forgetting the honorific on formal mail. Add 様 (sama) after the recipient’s name on formal letters, or 御中 (onchū) when writing to a company or department rather than an individual.

Why is Tokyo’s address system more complicated than other cities?

Tokyo’s address system has more quirks than most because the city was rebuilt and renumbered several times, most significantly after the 1923 Great Kantō Earthquake and after the Second World War. Many neighborhoods were renumbered, and the ward system was restructured. Block numbers therefore do not always follow a tidy geographic pattern.

Each of Tokyo’s 23 special wards functions almost as a separate city. The ward you live in determines your local government services, garbage collection, child healthcare benefits, elementary school catchment, and ward-office paperwork. This makes the ward designation an important practical detail, not just a postal one.

Because the numeric system can be confusing, many Tokyo residents give directions by the nearest train station rather than the address itself. With Tokyo’s extensive rail network, stations are often a more reliable landmark than block numbers.

What’s different about Tokyo apartment addresses?

Tokyo apartments often have longer, more detailed addresses than a typical Japanese home because the city’s density means most properties sit inside named buildings with multiple floors and units. Getting every part of the address right — especially the building name and unit number — is what keeps mail and deliveries flowing smoothly.

Mansion vs. apartment

In Japanese property listings, “mansion” (マンション / manshon) refers to a concrete or steel-reinforced apartment building, usually mid-rise or high-rise. “Apartment” (アパート / apāto) refers to a smaller, typically wood or light-steel low-rise building. The building type sometimes appears in the address but is not required for postal delivery.

Room numbering

Apartment unit numbers in Tokyo usually include the floor. A unit numbered 301 typically means the first unit on the third floor, while 1805 means unit 5 on the 18th floor. Some buildings use letters as well, such as 3A for the A unit on the third floor. The unit number is always written after the building name and floor.

Building names

Many Tokyo apartment buildings have official names that form part of the address. These can be in Japanese, English, or a mix of the two — for example, パークマンション渋谷 (Park Mansion Shibuya) or ロイヤルハイツ麻布 (Royal Heights Azabu). The building name goes between the numeric address (chōme-banchi-gō) and the floor and unit number.

Multiple entrances and towers

Larger residential complexes often have several buildings or entrances on the same plot of land. These are usually labelled with letters or numbers, such as Building A, Tower 2, or East Wing. When this applies, write the building designation directly after the building name and before the floor and unit.

Why the full address matters

When sending mail to a Tokyo apartment, always include the postal code, full address, building name, building designation if relevant, floor, and unit number. Couriers such as Yamato Transport and Sagawa Express, as well as Japan Post, rely on the building name to locate large complexes — the chōme-banchi-gō alone often points to a whole plot rather than a specific entrance.

When viewing apartments in Tokyo, always ask for the complete address including the building name. This confirms exactly where the property sits, lets you check transport links and local amenities, and ensures you can receive mail and deliveries from day one.

Practical tips for daily life in Japan

A few habits make addresses easier to handle once you are living in Japan or doing business with someone there.

Write your full address in both Japanese and English, and keep a copy on your phone. This helps with delivery services, ward office visits, and any emergency situation. Apps such as Google Maps work well with addresses in either language, and pinning your home location lets you share it directly with taxi drivers, couriers, or friends.

If an address looks incomplete or doesn’t match what you expect, ask at the nearest post office. Japanese postal workers handle address corrections constantly and can usually verify a postal code or building location in seconds. The official Japan Post postcode search tool covers every assigned code in Japan.

See the official Japan Post postcode search tool (Japanese only) → Here

Q&A: Common questions about Japanese addresses

How do I find my postal code in Japan?

Look up your postal code on the official Japan Post search tool by entering your prefecture, ward, and neighborhood. Most online maps, including Google Maps, also display the postal code when you search for a specific address. If you cannot find it, any post office will look it up for you in seconds.

Why are Japanese addresses written in reverse order?

Japanese addresses go from largest area to smallest because the system is designed around administrative regions, not street names. Postal workers sort mail by prefecture first, then narrow down to ward, neighborhood, and block. Most Japanese cities do not name their streets, so this hierarchical system replaces the street-and-number model used in Western countries.

What does the 〒 symbol mean?

The 〒 symbol is the official Japan Post mark, called yūbin kigō. It is placed directly before the seven-digit postal code on envelopes, forms, and signs. The symbol has been the postal service’s identifier since 1887 and is now used specifically to flag the postal code in addresses.

Do Japanese streets have names?

Most do not. With a few exceptions such as Kyoto and parts of Sapporo, Japanese streets are usually unnamed. Locations are identified by block (banchi) and building number (gō) within a named neighborhood. Major roads such as Tokyo’s Yasukuni-dori do carry names, but they are rarely used in formal addresses.

How do I write my address in Japan for an international package?

Write the address in romaji using the standard largest-to-smallest order: postal code, prefecture, ward or city, neighborhood, block-banchi-gō, building name and unit, then the recipient’s name. Add “Japan” at the end so your country’s postal service routes it correctly. The order does not flip, only the script changes from kanji to romaji.

What is the difference between -ku, -shi, -machi, and -mura?

These are municipal suffixes. -shi (市) means city, -machi or -chō (町) means town, and -mura or -son (村) means village. -ku (区) means ward, in Tokyo’s 23 special wards, the -ku is itself a municipality, while in other cities such as Yokohama or Osaka, -ku is an administrative subdivision of a larger city.

Can I use just the postal code to find a Tokyo address?

No. A seven-digit Japanese postal code typically narrows the location down to a single neighborhood or block, but you still need the chōme, banchi, and gō to identify the exact building. For apartments, you also need the unit number. The postal code alone is usually enough to find the right neighborhood on Google Maps.

How do I read a Japanese address aloud?

Formal reading uses the full unit names: “san-chōme go-banchi jū-gō” for 3-5-10. Informal reading replaces the unit names with the particle no: “san no go no jū.” The informal version is what you will hear in everyday conversation, including with taxi drivers and delivery staff.

What if I don’t know the building name for my apartment?

Check your lease, the building entrance, or the mailboxes inside the lobby, the official building name is almost always displayed on a name plate near the front door. You can also ask your landlord, property manager, or building concierge for both the Japanese and romaji versions. For larger residential buildings in central Tokyo, the building name is also listed on Google Maps and in Housing Japan’s property listings.

Do I need to write “Tokyo-to” or just “Tokyo”?

For domestic Japanese mail, write 東京都 (Tokyo-to), it is the official prefecture name and Japan Post systems expect it. For international mail sent from abroad, “Tokyo, Japan” is widely understood and will reach the right destination, though adding “Tokyo-to” gives extra clarity. The same applies to Osaka-fu, Kyoto-fu, and Hokkaido.

What if I can’t read the kanji in my address?

Ask your landlord, real estate agent, or building manager for a romanized version of your full address. You can also enter the address into Google Maps or the Japan Post postcode tool, which will display the kanji alongside English readings. Keeping a romaji and a kanji version of your address saved on your phone and printed in your wallet, covers almost every situation you will run into.

Finding your home address in Tokyo

Understanding the Japanese address format takes a little practice, but it becomes second nature once you have written your own address a few times. For anyone moving to Japan, owning property in Tokyo, or running a business that ships to Japanese clients, getting the format right saves time on every form, package, and contract.

Whether you are looking for a short-term rental during a business trip, a family home in central Tokyo, or a luxury investment property, Housing Japan offers full-service support across buying, selling, and property management in the city’s most established residential neighborhoods, from Minato-ku and Shibuya to Shinjuku and beyond. Our multilingual team with over 25 years of experience can help you find the right address in Tokyo and handle every step of the process.

Related Housing Japan guides

• Where Are Tokyo’s Luxury Neighborhoods?
• Buying a House in Japan as an Expat
• Tokyo Property Taxes and Fees: A Complete Guide
• Tokyo Condo Prices and Sales Keep Rising

Written by the Housing Japan editorial team – licensed Tokyo real estate specialists with over 25 years of experience helping international clients buy, sell, and manage residential property in central Tokyo.

Key Facts for 2026

• There are no nationality restrictions on buying property in Japan.
• Total buying costs typically run 5–6% of the purchase price, plus 1–2% in bank fees if you use a mortgage.
• The brokerage fee is capped at 3% + ¥60,000 + 10% consumption tax.
• From April 2026, non-residents must file FEFTA Form 22 with the Bank of Japan within 20 days of acquisition.
• From April 2026, all buyers must disclose their nationality at registration, this is a disclosure rule, not a restriction.
• A typical purchase, from offer to keys, takes 60–90 days.

Can a Foreigner Buy a House in Japan?

Yes. A foreigner can buy a house in Japan with the same legal rights as a Japanese citizen. You do not need to be a resident, hold a visa, or have lived in Japan before. The Real Property Registration Act applies the same rules to every buyer regardless of nationality, and there is no quota on how many units in a building can be foreign-owned.

This makes Japan one of the most open property markets in Asia. The legal right to buy is completely separate from the right to live in Japan, so many international buyers complete their purchase while visiting on the standard 90-day visa-free entry available to nationals of the United States, the United Kingdom, Australia, and 71 other countries (Ministry of Foreign Affairs of Japan). Owning a property does not grant residency; to live in your home long-term, you still need a separate work, spouse, or business visa.

The practical work, finding a property, financing, contracts, and registration, is more involved than the legal question. The rest of this guide explains exactly how the process works, what it costs, and what changed in 2026.

How Do You Buy a House in Japan? Step-by-Step Process

Buying a home in Japan typically takes 60 to 90 days from your first offer to receiving the keys. The process follows eight defined steps. Knowing them in advance helps you plan your travel, your finances, and your paperwork.

1. Choose an Experienced Bilingual Agent

In Japan, your real estate agent does work that in many other countries belongs to a lawyer. Licensed brokers handle market research, negotiations, contract drafting, and the legal paperwork around title transfer. A bilingual, licensed agent is your single most important professional. The right agent provides:

• Legal safety throughout the transaction
• Translation and clear explanation of Japanese-language documents
• Advisory on pricing and current market trends
• Property viewing coordination and on-site due diligence
• Guidance on market standards and realistic expectations
• Negotiations and formal contract handling with the seller

Tell your agent your target area, property type, budget, and timeline at the first meeting. A good agent should also screen for off-market listings, which make up a meaningful share of central Tokyo luxury inventory.

It is important to work with a licensed real estate agent based in Japan. Under the Real Estate Transaction Business Act, only brokers licensed by a prefectural governor or MLIT can legally handle property transactions, and every agency must have a qualified Real Estate Transaction Specialist (宅建士, takken-shi) on staff to deliver the Explanation of Important Matters before signing. A Japan-based licensed agent also gives you access to REINS, the national listings database, plus local knowledge of building condition, zoning, and pricing, none of which an overseas-only or unlicensed introducer can legally provide.

2. View Properties On-site

Plan to view several homes in one trip. Tokyo houses and apartments tend to be smaller than equivalents in the US or Europe, so it may be a good idea to see the space in person before deciding. Larger houses and apartments over 100m2 are available in Tokyo, but these come at a premium. Always have your agent attend the viewing for proper due diligence on building condition, management fees, and neighborhood factors.

3. Talk to a Bank About Financing

If you are paying cash, you can skip this step. If you need a mortgage, start the conversation with a bank before you make an offer. Japanese banks can provide an informal pre-approval that strengthens your position when you make an offer. Resident buyers with stable Japan income have access to standard rates from major banks. Non-resident buyers have fewer options, and most lenders will require a much larger deposit. Some specialist banks do work with non-residents but usually come with higher interest, large downpayments and capped borrowing amounts.

4. Submit a Letter of Intent

Once you decide on a property, your agent submits a Letter of Intent (買付証明書, kaitsuke shōmeisho) to the seller. This expresses serious purchase intent and sets out your offer price and conditions. Letters of Intent are usually treated on a first-come, first-served basis, so having financing already lined up gives you a real advantage.

5. Negotiate Terms and Sign the Purchase Contract

Your agent negotiates price, payment timing, fixtures, and handover conditions with the seller’s side. This usually takes one to two weeks. When terms are agreed, both parties sign the formal purchase contract. At this stage, a cash deposit (手付金, tetsukekin) of 5–10% of the purchase price is typically paid directly to the seller. This often surprises foreign buyers, since earnest money in many other countries is held by a third party such as an escrow agent. The idea behind the practice is that Japan is a trust-based society, paying part of the cost up front is a sign of commitment and solidifies trust between buyer and seller. Even buyers using a mortgage need to bring this deposit in cash.

6. Review the Explanation of Important Matters

Before signing, your agent provides the “Explanation of Important Matters Regarding the Property and Transaction” (重要事項説明書, jūyō jikō setsumeisho). This document covers ownership type, building condition, management association rules, zoning, and cancellation provisions. Reputable agencies provide an English translation, but only the Japanese version has legal effect, translations exist solely as reference. This is why bilingual representation matters.

7. Final Loan Approval (Mortgage Buyers Only)

If you are using a mortgage, your final loan approval comes through after the contract is signed. You will sign the loan agreement at the bank, usually on a weekday and lasting several hours. Cash buyers can move directly to settlement.

8. Final Settlement and Title Transfer

Settlement usually happens at the buyer’s bank and is handled by a judicial scrivener (司法書士, shihō shoshi). The buyer transfers the remaining balance to the seller’s account, the keys are handed over, and the scrivener files the ownership transfer at the Legal Affairs Bureau. Your name appears in the official property register within a few business days, which is the moment you become the legal owner, not the contract signing.

Let the professionals take care of every step of the process, Contact our Expert Bilingual Tokyo Real Estate Agents with over 25 years of eyepiece for more information.

How Much Does it Cost to Buy a House in Japan?

Total purchase costs in Japan typically run 5 to 6 percent of the purchase price. If you use a mortgage, expect an additional 1 to 2 percent in bank-related fees on top of that. The breakdown below uses official rates from the National Tax Agency, the Ministry of Land, Infrastructure, Transport and Tourism (MLIT), and Tokyo Metropolitan Government for 2026.

Most taxes are calculated from the property’s assessed value (固定資産評価額), not the purchase price, and the assessed value is usually well below market price, which keeps the actual tax bill lower than the headline rates suggest. The reduced 1.5% land registration rate runs through 31 March 2029, and reduced building registration rates through 31 March 2027, so check current rates with your agent before closing. The real estate acquisition tax bill arrives 3–6 months after registration, so set funds aside for it.

As the chart shows, the agent fee is the single largest line item in your closing costs, typically larger than all government taxes combined. This is why choosing the right agent matters: in Japan, your broker does the work that a lawyer would handle elsewhere, including contract drafting, legal disclosures, and title transfer coordination. The fee you pay is for that full scope of work, not just property search.

These percentages are a rough estimate based on a sample Tokyo residential purchase. Actual costs vary depending on the property’s assessed value, whether reduced tax rates apply, and the type of building. For a complete breakdown of every tax and fee involved in a Japanese property purchase, read our full guide to buying taxes and fees.

Other costs might include registration fee and or property management fees. There is also Asset Tax and City Tax that count as ongoing yearly costs of owning a property in Japan as well as loan/mortgage repayments if you have borrowed.

To get an estimate on your monthly loan payments in Japan, you can refer to our Yen Loan Calculator. 

What Documents Do You Need to Buy a House in Japan?

The required documents depend on whether you live in Japan or abroad. In both cases, your agent and judicial scrivener will guide you through the exact paperwork.

If You Live in Japan

• Residence card and passport
• Inkan (registered personal seal) and seal certificate (印鑑登録証明書)
• Proof of income, three years of records if applying for a mortgage

If You Live Outside Japan

• Passport
• Notarised affidavit in place of the inkan and seal certificate
• Proof of address, often in the form of a utility bill or bank statement
• From April 2026: information needed for the FEFTA Form 22 filing, see below

What Changed for Foreign Buyers in 2026?

Two important administrative changes took effect in April 2026. Neither restricts your right to buy, both add a reporting step.

1. FEFTA Form 22 Reporting for Non-Residents

From 1 April 2026, all non-resident buyers acquiring real estate in Japan must file Form 22 with the Bank of Japan within 20 days of acquisition. The form covers property type, location, area, acquisition date, and price. A licensed real estate agent or judicial scrivener can submit it on your behalf, which is the standard approach. The filing is for government statistics and compliance; it does not block your purchase.

2. Nationality Disclosure at Registration

Under the Ministry of Justice’s amendment to the Real Property Registration Rules (不動産登記規則), published for public comment on 23 December 2025, every property buyer, Japanese and foreign, must declare their nationality when applying for ownership registration at the Legal Affairs Bureau. The amendment is scheduled to take effect in early fiscal year 2026. Nationality is recorded only in an internal “search information management file” maintained by the Ministry of Justice and does not appear on the public Real Property Register (登記簿). Privacy protections apply equally to all buyers.

What did NOT change: Foreign nationals still have the same property ownership rights as Japanese citizens. There is no foreign ownership cap, no minimum investment, no reciprocity test, and no “golden visa”, buying a house does not give you a visa or residency.

What Should Expats Know Before Buying a House in Japan?

A few features of the Japanese system regularly surprise international buyers. Understanding them up front avoids costly mistakes.

Lawyers Are Not Part of a Standard Purchase

Japan does not use a notary or buyer-side lawyer for residential property. Licensed brokers and judicial scriveners handle the legal work. This makes choosing an experienced, well-staffed agency far more important than in markets where a separate lawyer reviews everything.

All Documents Have Legal Effect Only in Japanese

Every contract, disclosure, and registration is in Japanese. Reputable agencies provide English translations, but only the Japanese version has legal standing, translations are reference materials. Always work with an agency that has both bilingual front-line staff and a Japanese-qualified legal team behind them.

Ownership is Confirmed by Registration, Not by Signing

In some countries, the moment you sign and pay you are the owner. In Japan, ownership only becomes legally secure when your name is recorded in the official property register at the Legal Affairs Bureau. Your judicial scrivener handles this within days of settlement, but it is the registration, not the contract, that secures your title.

Non-Resident Owners Need a Tax Representative

If you live outside Japan, you must appoint a tax representative (納税管理人, nōzei kanrishin) at a Japan address to receive your fixed asset tax bill each year. Many foreign buyers use their judicial scrivener, agent, or a specialised mail-handling service for this.

Should You Buy in Japan for Short-Term Rental Income?

Japan’s 2018 Private Lodging Business Act (民泊新法) caps short-term rentals at 180 days per calendar year, and around 99% of condominium management associations prohibit short-term rentals entirely in their bylaws. Tokyo wards including Shinjuku, Shibuya, and Minato restrict residential-zone minpaku further to weekends and holidays. That does not close the door on short-term rental income, it just means the property type and operating model matter more than they would elsewhere. Investors typically pursue one of three routes: buying an entire apartment building, developing in a designated National Strategic Special Zone (特区民泊) that allows 365-day operation, or operating under a hotel or ryokan licence (旅館業法) instead of minpaku.

Housing Japan’s sister company, Ken’s Place, specializes in this work across central Tokyo, Minami Azabu, Roppongi, Azabu-juban, Omotesando, and Akasaka, supporting investors through business planning, design, license application, and day-to-day operation. If short-term rental income is part of your buying thesis, talking to both teams early keeps the acquisition and the operating model aligned from day on.

How Does the Process Differ for Residents and Non-Residents?

Most legal points are identical. The differences are practical: which IDs you can use, which banks will lend to you, and which reports you must file.

Why Buy a House in Tokyo?

Tokyo combines deep liquidity, strong rule of law, and globally low borrowing costs. Property rights are secure, the title system is transparent, and Tokyo is one of the world’s most connected business cities through exceptional public transport, bullet trains and Haneda and Narita airports. Rental yields in central Tokyo typically run 3–5% gross, with prime wards like Minato sitting at the lower end and emerging areas at the higher end (Housing Japan market analysis). Yields in the 23 wards as a whole average around 4%, while regional cities can reach higher levels in exchange for greater vacancy risk.

For owner-occupiers, the appeal is the city itself, efficient transport, world-class amenities, low crime, and architecture that ranges from quiet residential streets in Hiroo to landmark high-rises in Minato and Shibuya. For investors, the combination of yen-denominated assets and a stable legal framework make Tokyo a natural diversification market.

Ready to Buy a House in Tokyo?

Housing Japan has guided international buyers through the Tokyo property market for over 25 years. Our bilingual team is licensed by Tokyo Metropolitan Government and handles every step of the purchase, from off-market property sourcing and contract negotiation to FEFTA filings and tax representative services for non-residents.

Contact our expert bilingual Tokyo real estate agents:

Q&A: Buying a House in Japan as an Expat

Can foreigners buy property in Japan in 2026?

Yes. Foreign nationals can buy land, houses, and apartments in Japan in 2026 with the same legal rights as Japanese citizens. There are no nationality, residency, or visa requirements. From April 2026, non-residents must file a Bank of Japan FEFTA Form 22 within 20 days of acquisition, and all buyers disclose nationality at registration, but neither rule blocks foreign purchases.

Do I need a visa or residency to buy a house in Japan?

No. You do not need a Japanese visa or residence permit to buy property in Japan. Citizens of 71 countries, including the United States, United Kingdom, Australia, and most of the EU, can enter Japan visa-free for up to 90 days, which is enough time to view properties and sign a purchase contract. Buying a house does not grant you any visa or right to live in Japan long-term, those are handled separately by the Immigration Services Agency.

How much does it cost to buy a house in Japan?

Total buying costs in Japan typically run 5 to 6 percent of the purchase price, with an additional 1 to 2 percent in bank fees if you take a mortgage. The largest single cost is the brokerage fee, capped at 3% of the price plus ¥60,000 plus 10% consumption tax. Other costs include registration tax (1.5% on land, reduced rate extended through 31 March 2029), real estate acquisition tax (3% on residential land and homes), stamp duty, and judicial scrivener fees.

Can foreigners get a mortgage in Japan?

It depends on your residency status. Foreign nationals living in Japan with stable local income can get a mortgage from most major banks at the same rates as Japanese citizens. Non-resident buyers living overseas have far fewer options, most Japanese banks require Japan residency and Japan income, but a small number of specialist lenders offer mortgages to non-residents, usually at higher rates and with loan-to-value ratios of 50–70%.

How long does it take to buy a house in Japan?

A standard purchase in Japan takes 60 to 90 days from the initial Letter of Intent to final settlement and key handover. Cash buyers can sometimes close in 30 to 45 days. The main steps are property search and viewings, contract negotiation, deposit payment, mortgage approval (if applicable), and final settlement at the buyer’s bank. Title transfer registration at the Legal Affairs Bureau usually completes within a few business days of settlement.

What is FEFTA Form 22 and do I need to file it?

FEFTA Form 22 is the report non-resident buyers file with the Bank of Japan after acquiring real estate in Japan. From 1 April 2026, all non-residents must file it within 20 days of acquisition, regardless of whether the property is for residence or investment. Your real estate agent or judicial scrivener can file on your behalf, which is the standard practice. The filing is for government statistics and does not require approval to complete your purchase.

Are there areas in Japan where foreigners cannot buy property?

There are no general bans, but a small number of designated zones near defence facilities, government installations, and remote border islands fall under the Important Land Survey Act. Buyers in these zones must file a post-transaction notification within two weeks of signing. Central Tokyo, Osaka, Fukuoka, and other major urban markets are not affected. Your agent will check the zoning before you make an offer.

Do I have to pay tax in Japan if I rent out my property?

Yes. Rental income from Japanese real estate is taxable in Japan regardless of where the owner lives. Non-resident landlords are subject to a 20.42% withholding tax when the tenant is a Japanese company, paid directly to the tax office. Income tax is filed annually and tax treaties (such as the US-Japan and UK-Japan treaties) usually prevent double taxation. A licensed Japanese tax accountant should handle the filings.

Can I do Airbnb with a property I buy in Japan?

Often no. Japan’s minpaku law caps short-term rentals at 180 days per year, and around 99% of condominium management associations prohibit short-term rentals in their bylaws. Detached houses give you more flexibility, but municipal rules vary widely, Tokyo wards such as Shinjuku, Shibuya, and Minato restrict residential-zone minpaku to weekends and holidays. Always confirm building bylaws and ward rules in writing before buying for short-term rental income.

Why work with Housing Japan?

Housing Japan has been guiding international buyers through Tokyo property purchases for 25 years. Our bilingual agents are licensed by Tokyo Metropolitan Government, our staff handle the FEFTA filing and tax representative requirements directly, and we have a track record across both on-market and exclusive off-market luxury inventory in central Tokyo. Contact us for a confidential consultation about your purchase.

Written by Housing Japan’s editorial Team. Housing Japan is a licensed brokers with over 25 years of experience helping international buyers purchase homes in Tokyo.

Sources used for this blog:

• japan.kantei.go.jp
• https://www.mofa.go.jp/j_info/visit/visa/short/novisa.html

Note: Note: Housing Japan is involved in property sales and development in Tokyo. We act in the buyer’s best interest and only recommend properties that align with your needs, circumstances, and goals. Information here is for general guidance and is not legal or tax advice. Always consult a licensed Japanese tax professional for personal advice.

What Makes a Neighbourhood Luxury in Tokyo?

In Tokyo, a luxury neighborhood is defined by more than price alone. According to REINS Market Watch data, the average transaction price for existing condominiums in Tokyo’s 23 wards reached ¥1.375 million per square meter in January 2026, more than double the figure in neighboring Saitama or Chiba. The areas that consistently attract high-net-worth residents and expatriate families share a clear set of characteristics: proximity to international schools and embassies, access to green space, low crime, high-quality architecture, and easy connections to central business districts.

Most of Tokyo’s prestigious districts sit inside or along the Yamanote Line, the loop railway that encircles the city centre. Many of these areas were originally home to samurai lords during the Edo period and later became the preferred addresses of noble families, foreign diplomats, and government officials during the Meiji era. That historical foundation still shapes their appeal today.

Property types vary considerably across these areas. Some districts are dominated by high-rise condominiums with concierge services, private gyms, and secure parking. Others are known for low-rise boutique residences with fewer units, more privacy, and carefully considered design. The suburban areas offer something different again: detached houses with gardens, wide streets, and a pace of life that feels removed from central Tokyo while remaining well connected to it.

Which Ward Should You Focus On?

Six wards stand out for luxury property buyers in Tokyo: Minato, Chiyoda, Shibuya, Shinjuku, Shinagawa, and Meguro. Each ward contains several distinct neighborhoods, and the character of those neighborhoods can differ sharply even within a short distance.

Of these, Minato Ward consistently records the highest residential land prices in Japan. The Ministry of Land, Infrastructure, Transport and Tourism’s 2025 official land price announcement valued a residential plot at 1-14-11 Akasaka in Minato Ward at ¥5.9 million per square meter, making it the most expensive residential land point in Japan for the eighth consecutive year. Across the central five wards of Chiyoda, Chuo, Minato, Shinjuku, and Shibuya, residential land prices rose by an average of 12.0% in 2025, reflecting strong demand from both domestic and international buyers.

Minato Ward: Tokyo’s International Luxury Hub

Minato Ward contains a high concentration of Tokyo’s prime residential neighborhoods. Azabu, Roppongi, Akasaka, Shirokane, Aoyama, and Toranomon all fall within its boundaries. The ward’s international character comes from its density of foreign embassies, corporate headquarters, and international schools, which have shaped it since the Meiji period, when foreign diplomats first settled here.

Azabu

Azabu has long been associated with prestige and diplomatic history in Tokyo. The area includes several sub-districts: Minami-Azabu, Moto-Azabu, Nishi-Azabu, and Azabu-Juban, each with its own character. Minami-Azabu is particularly known for its concentration of foreign embassies and consulates. Azabu-Juban has a relaxed, village-like shopping street that mixes traditional food shops with modern boutiques. Moto-Azabu and Nishi-Azabu offer quieter, more private residential settings. Based on Housing Japan’s market data, monthly rents for a one-bedroom apartment in Azabu can easily start above ¥500,000, with larger luxury units reaching several million yen per month.

Roppongi

Roppongi is best known internationally for its nightlife, but its residential side has changed significantly over the past two decades. The development of Roppongi Hills and Tokyo Midtown brought large luxury apartment complexes, international dining, art galleries, and designer shopping to the area. People who live here are drawn by the density of amenities and the cosmopolitan atmosphere. High-rise apartments with city views and 24-hour concierge services are the dominant property type.

Akasaka

Akasaka combines proximity to government offices and five-star hotels with pockets of quiet, exclusive residential living. The neighborhood has roots going back to the Edo period and developed into a center of political and business activity in the late 19th century. Today it offers large luxury towers alongside more intimate residential streets, such as Akasaka Hikawacho.

Shirokane

Shirokane is quieter and more residential than Roppongi or Akasaka. It is known for low-rise buildings, tree-lined streets, and a serene atmosphere that attracts wealthy Japanese families as well as expatriates. The area wraps around the Institute for Nature Study, a large green space that adds to its calm character. Access to central Tokyo is straightforward via the Mita and Namboku subway lines.

Shibuya Ward: Style and Convenience

Shibuya Ward sits adjacent to Minato Ward and shares much of its appeal, with a slightly more creative and culturally active character. The ward’s average price per square meter of around ¥2.5 million places it among Tokyo’s most expensive areas. Key luxury neighborhoods include Hiroo, Daikanyama, Ebisu, and Shoto.

Hiroo

Hiroo is a natural first choice for expatriate families. It sits on the Hibiya metro line and is within easy reach of several international schools and foreign embassies. The Hiroo Shotengai shopping street offers cafes, restaurants, and boutiques with a distinctly international flavor, and the National Azabu supermarket is a well-known landmark for expats seeking imported goods. The neighborhood sits between Roppongi and Ebisu, offering a calmer alternative to both. Property for sale in Hiroo ranges from around ¥150 million for a condo unit near Hiroo Station to 1 billion yen or more for larger residences. These figures sit well above the REINS Market Watch average for existing condominiums across Tokyo’s 23 wards, reflecting Hiroo’s standing as one of the more desirable expat addresses in the city.

Daikanyama

Daikanyama sits just west of Ebisu and has a relaxed, village-like atmosphere that makes it feel distinct from the busier parts of Shibuya Ward. Narrow alleys, hidden courtyards, independent boutiques, and the Daikanyama T-Site complex give it a creative character that attracts designers, entrepreneurs, and people in the arts. Luxury apartments here tend to be low-rise, discreetly finished, and tucked away from the main streets rather than announced by large tower lobbies.

Ebisu

Ebisu centers on JR Ebisu Station and offers strong transport connections to Shibuya, Meguro, and beyond. Yebisu Garden Place, a former brewery site, anchors a cluster of luxury apartments, a five-star hotel, and high-end restaurants. The neighborhood is popular with young professionals and expatriates who want urban convenience without the intensity of Shibuya itself.

Shoto

Shoto is known for its quiet streets and private, low-density character within central Tokyo. Despite being only a few minutes’ walk from Shibuya Station, the area feels removed from it. Detached homes and low-rise residences surrounded by greenery attract celebrities and business leaders who prioritise privacy. It rarely appears in international property searches but is well known among Tokyo’s most affluent residents.

Meguro Ward: Green Living and Quiet Luxury

Meguro Ward offers a different version of Tokyo luxury: more artistic, greener, and community focused. The ward is home to excellent schools, cultural facilities, and neighborhoods that have developed strong local identities. Property prices here rank among the highest in Tokyo’s residential market, particularly in Nakameguro.

Nakameguro

Nakameguro draws many people during cherry blossom season when the Meguro River is lined with flowering trees, and its riverside walks are widely shared on social media throughout the year. Beyond the seasonal spectacle, the area is known for well-regarded dining, independent shops, art galleries, and a strong local arts community. Luxury apartments here tend to feature minimalist architecture, river-view balconies, and carefully curated interiors. The area is popular with artists, designers, and younger professionals.

Jiyugaoka

Jiyugaoka sits further south in Meguro Ward and is sometimes called “Little Europe” for its European-influenced street design and cafe culture. It offers a peaceful suburban feel alongside easy access to central Tokyo. Families are drawn by the quality of nearby schools, the walkable streets, and the sense of community that is harder to find in denser central districts.

Shinagawa Ward: Heritage Hilltops and Transport Access

Shinagawa Ward includes some of Tokyo’s quieter prime residential pockets, particularly Gotenyama, Ikedayama, and Shimazuyama. These hilltop neighborhoods were favored by samurai families and later by Meiji-era industrialists, and they retain a calm, established atmosphere today. The ward’s appeal for international buyers comes partly from its transport links: Shinagawa Station serves the Tokaido Shinkansen and offers direct access to Haneda Airport, making it a natural choice for executives who travel frequently. Property over the whole ward is a good mix of condos, detached homes and low-rise residences rather than high-rise towers with exclusive residences in the prime areas.

Suburban Luxury: Denenchofu and Seijo

Two suburban neighborhoods stand apart from the central wards and offer a type of luxury that is defined by space rather than density.

Denenchofu, located in Ota Ward about 10 kilometres from the city centre, is a planned garden suburb developed in the early 20th century on the model of English garden cities. Wide tree-lined boulevards, Western-style houses, and spacious gardens characterise the area. Some properties are large enough to include tennis courts or swimming pools, which is rare in Tokyo. Unique construction regulations help preserve the character of the neighbourhood, and it regularly appears among the most expensive residential areas in Japan. Residents tend to be business executives, politicians, and public figures.

Seijo, in Setagaya Ward, is sometimes called Tokyo’s Beverly Hills. Large detached houses with manicured gardens and private driveways dominate the streetscape. Many properties are custom-built. The area is strongly family-oriented, with excellent schools and a quiet, established atmosphere.

How Do These Neighbourhoods Compare?

What Should Expats and Foreign Buyers Consider?

For people moving to Tokyo from overseas, the choice of neighborhood often comes down to a small number of practical priorities: proximity to an international school, access to English-speaking services, and transport connections to a workplace or airport.

Hiroo and Azabu consistently rank highest for expat families because they offer both international schools and a concentration of English-speaking amenities within walking distance. Roppongi and Ebisu attract people who prioritise connectivity and dining options. Those who need frequent access to Haneda Airport or Shinagawa Station for the Shinkansen tend to look at Shinagawa Ward neighbourhoods such as Gotenyama and Ikedayama, which offer a blend of traditional and modern living with strong transport links.

Buyers looking for space rather than proximity to the city centre often turn to Denenchofu or Seijo, where property sizes that would be impossible in Minato Ward become realistic. The trade-off is a longer commute, though both areas are well served by the Tokyu Toyoko and Den-en-toshi lines.

Start Your Tokyo Property Search

Choosing the right neighborhood is one of the most important decisions in a Tokyo property search, and the differences between areas often only become clear once you spend time in them. With over 25 years of experience in Tokyo’s luxury real estate market, Housing Japan’s bilingual team works with international buyers across all of the city’s prime wards and can help you narrow down the areas that fit your lifestyle, family needs, and investment goals. Get in touch to speak with one of our property specialists about what you’re looking for.

Frequently Asked Questions

What is the most prestigious neighbourhood in Tokyo?

Azabu in Minato Ward is consistently ranked among Tokyo’s most prestigious residential addresses. It has been home to foreign embassies and diplomatic missions since the Meiji period and records some of the highest property prices in the city. Adjacent Akasaka, also in Minato Ward, holds Japan’s highest official residential land price point at ¥5.9 million per square meter according to MLIT 2025 data.

Where do most expats live in Tokyo?

Hiroo, Azabu, and Roppongi, located in Minato and Shibuya wards, have long-established expatriate communities. These areas offer international schools, English-speaking medical facilities, imported food shops, and embassies within a compact area. Daikanyama and Ebisu are also popular with younger expat professionals.

How much does luxury property cost in Tokyo?

According to REINS Market Watch, the average transaction price for existing condominiums in Tokyo’s 23 wards reached ¥1.375 million per square metre in January 2026. It is reported that newly built condominiums in the 23 wards averaged ¥137.84 million per unit in fiscal year 2025, surpassing ¥130 million for the first time on record. Prime addresses in Minato Ward sit well above these averages, with luxury units in Azabu, Roppongi, and Aoyama trading at the top end of the market.

Is Roppongi a good place to live in Tokyo?

Roppongi works well for people who want to be close to entertainment, international dining, art galleries, and shopping. The development of Roppongi Hills and Tokyo Midtown has brought high-quality residential options to the area. It is popular with expats who want an active urban lifestyle. People who prefer quiet streets and greenery tend to prefer Hiroo, Shirokane, or Shoto.

What is the difference between Azabu and Hiroo?

Azabu and Hiroo sit next to each other in central Tokyo and share many features, including embassies, international schools, and a strong expatriate presence. The main difference is character: Azabu is denser, more historically diplomatic, and includes the lively Azabu-Juban shopping street, while Hiroo feels calmer and more residential, centred on Hiroo Shotengai and the National Azabu supermarket. Property prices in both areas rank at the top of the Tokyo market.

Which Tokyo neighborhood is best for families with international children?

Hiroo is a common first choice for international families because it sits within walking distance of several international schools, including the British School in Tokyo and the Nishimachi International School. Azabu, Aoyama, and parts of Shibuya Ward also work well for families, with strong transport links to schools across the city.

Can foreigners buy property in Tokyo’s luxury neighbourhoods?

Yes. Japan places no nationality-based restrictions on foreign property ownership, and foreign buyers can purchase freehold land and buildings in Minato, Shibuya, Meguro, and other prime wards on the same terms as Japanese citizens. Financing terms differ for non-residents, and most international buyers either pay in cash or arrange financing through specialist lenders.

Source:
Ministry of Land, Infrastructure, Transport and Tourism (MLIT) https://www.mlit.go.jp/
REINS (Real Estate Information Network System) https://www.reins.or.jp/