Reporting scope expanded from April 2026
The Ministry of Finance promulgated amendments to Japan's foreign-exchange reporting rules on February 20, with the changes taking effect on April 1, 2026. Under the current framework, when a non-resident acquires Japanese real estate or certain rights relating to it, a report generally must be submitted to the Minister of Finance through the Bank of Japan within 20 days of acquisition. The purchaser can file directly, a Japan-resident agent such as a real-estate intermediary may file in appropriate cases, and online filing is available.
Some owner-occupation cases remain exempt
The Ministry of Finance FAQ sets out exemptions that can apply after April 1. Certain rights acquired for use as a residence by the non-resident, the buyer's relatives or employees may be exempt, as may certain property used as the buyer's own office or for non-profit activities in Japan. However, the ministry expressly states that holiday homes and second homes are not treated as qualifying residential use for this exemption. The result depends on the property use and the legal right acquired, so it is incorrect to assume that all residential purchases by foreigners are exempt.
Post-closing compliance is now part of the acquisition process
International buyers often focus on contracts, remittance, identity checks and title registration, but post-acquisition reporting should also be built into the closing workflow. This is particularly important for investment apartments, income-producing properties and second homes. The FEFTA concept of a non-resident is based on residence status for foreign-exchange purposes rather than nationality alone, meaning a Japanese national can also be a non-resident. Buyers and agents therefore need to check both the purchaser's residence classification and the intended use of the property rather than relying on nationality.