Japan Expands FEFTA Reporting for Property Acquisitions by Non-Residents From April 2026

The reporting scope expanded from April 1

Japan's Ministry of Finance amended the reporting ordinance under the Foreign Exchange and Foreign Trade Act on February 20, with the changes taking effect on April 1, 2026. The amendment added certain acquisitions of Japanese real estate for residential, non-profit business and office use to the post-acquisition reporting framework. It also added certain acquisitions of Japanese real estate or related rights from another non-resident. As a result, non-resident buyers undertaking ordinary property acquisitions have greater reason to confirm whether a report is required.

Reporting is separate from the legal ability to own property

FEFTA reporting should not be confused with a prohibition on foreign ownership. The amendment does not create a general ban preventing foreign nationals from buying ordinary Japanese condominiums or land. Instead, it concerns administrative reporting after a qualifying acquisition. Current Ministry of Finance guidance provides for submission through the Bank of Japan to the Minister of Finance and allows a resident representative, such as a real estate intermediary, to submit on behalf of the non-resident acquirer.

Responsibility should be identified before closing

In cross-border transactions, buyers often focus on the contract, international remittance, identity checks and registration, leaving post-closing administrative requirements until later. A more reliable process is to identify before settlement who will determine reporting applicability and who will prepare and file any required documents. Where a Japanese intermediary or representative is involved, the scope of that person's responsibility should be clear. For overseas investors, the key distinction is that being legally able to buy Japanese real estate does not mean that no administrative obligations arise after acquisition.