Reporting coverage expanded from April
Japan's Ministry of Finance expanded the post-transaction reporting framework for acquisitions of Japanese real estate or related rights by non-residents from April 1, 2026. Under the ministry's current guidance, when an acquisition is reportable the non-resident must file a Report on Acquisition of Real Property or Rights Related Thereto in Japan within 20 days after acquisition, through the Bank of Japan to the Minister of Finance. The February regulatory amendment broadened the scope to include categories of transactions that had previously been excluded, including certain acquisitions connected with residential or office use and transactions from other non-residents.
Residence status matters more than nationality alone
A key practical point is that the regime is based on whether the purchaser is a 'non-resident' under the Foreign Exchange and Foreign Trade Act, not simply whether the purchaser is a foreign national. A Japanese citizen living overseas may fall within the non-resident framework, while a foreign national established in Japan may be treated differently depending on the applicable definitions. Exemptions also depend on factors such as purpose and the type of right acquired. The Ministry of Finance states that the report can be submitted by the purchaser or by a resident representative, including a real-estate intermediary.
Compliance continues after closing
For an overseas buyer, closing, payment and title registration may appear to complete the property purchase, but a separate FEFTA filing can remain outstanding. Because the deadline is 20 days, it is practical to establish the buyer's residence classification, purpose of acquisition and potential reporting requirement before settlement. The rule should also be distinguished from a prohibition on foreign ownership: it is a reporting regime applying to specified acquisitions, not a general ban on non-residents purchasing Japanese real estate.