Five-year extension with stronger support for resale housing
Japan's FY2026 tax reform extends the home loan tax credit for another five years. The Ministry of Finance says the reform raises eligible borrowing limits for certain certified and ZEH-level energy-efficient existing homes and broadens additional support for households with children. The policy marks a stronger shift toward encouraging purchases of higher-performance resale housing, an increasingly important segment as new-home prices rise.
Qualifying existing homes can receive a 13-year credit period
The reform extends the credit period to 13 years for certain existing homes meeting at least the applicable energy-efficiency standard. It also broadens the special relaxation of the minimum floor-area requirement to some existing homes. At the same time, eligibility for new construction is increasingly linked to energy performance. Buyers therefore need to look beyond whether a property is simply new or used and confirm its certified energy category and the year in which occupancy begins.
Foreign buyers must still satisfy residence and tax conditions
Foreign nationality does not by itself determine access to Japan's home loan tax credit. Eligibility depends on the individual's Japanese income-tax position, occupancy of the home, financing conditions and other statutory requirements. A non-resident purchasing an investment property should not assume that the ordinary owner-occupier mortgage credit applies. The 2026 reform is primarily designed to support qualifying owner-occupied housing, especially higher-performance existing homes.