📋 April 2026 Update: All three FEFTA changes described in this article are now in effect as of April 1, 2026. The residential exemption has been removed, nationality disclosure is required at property registration, and Form 22 filing is mandatory for all non-resident acquisitions. This guide has been updated to reflect the current requirements.
Japan's Foreign Exchange and Foreign Trade Act (FEFTA) reporting requirements for foreign property buyers changed significantly on April 1, 2026. Since that date, the reporting obligation covers all real estate acquisitions by non-residents, including those for residential purposes. Additionally, nationality disclosure is now required during property registration.
This guide provides a comprehensive overview of the current FEFTA requirements, the April 2026 changes now in effect, and a step-by-step compliance checklist for foreign property buyers. For an overview of the full property buying process in Japan, see our dedicated guide.
Last updated: April 12, 2026
What Is FEFTA and Why Does It Matter?
The Foreign Exchange and Foreign Trade Act (FEFTA) is Japan's primary foreign investment control legislation. Originally enacted in 1949 and substantially revised over the decades, it governs how non-residents can invest in Japanese companies, acquire real estate, and transfer funds internationally.
For real estate specifically, FEFTA classifies the purchase of domestic property by a non-resident as a "capital transaction" that requires government reporting. This applies regardless of property type — land, houses, apartments, and commercial buildings are all covered.
Japan Has No Restrictions on Foreign Ownership
Unlike many countries in the Asia-Pacific region, Japan does not restrict property ownership based on nationality. Foreign individuals and corporations can buy land, houses, and apartments under their own name — under the same conditions as Japanese nationals. There are no foreign buyer surcharges, no approval requirements, and no limits on the number of properties a foreign national can own.
However, you must comply with FEFTA reporting requirements. This is where most foreign buyers encounter compliance issues — not because the process is difficult, but because many are unaware the obligation exists.
What Changed on April 1, 2026: The 3 Major Updates
Change 1: All Property Purchases Now Require Reporting
Before April 1, 2026:
- Only investment-purpose acquisitions required FEFTA reporting
- Personal residences were exempt from the reporting obligation
Since April 1, 2026:
- All real estate acquisitions by non-residents require reporting
- Including purchases for residential purposes
- The residential exemption has been removed
The Japanese government found that some properties declared as "residential" were not actually being used as residences, creating a compliance gap. The removal of this exemption closed that loophole and simplified the reporting framework — all non-resident acquisitions now follow the same procedure.
Source: Ministry of Finance announcement, December 2025; Stellex Law Firm analysis, January 2026.
Change 2: Nationality Disclosure in Property Registry
Since April 1, 2026, all property buyers — including Japanese nationals — must disclose their nationality when registering ownership transfers at the Legal Affairs Bureau (法務局).
What this means in practice:
- Buyers must submit passport or residence card copies along with their registration application
- Nationality will NOT be listed in public real estate registries (privacy is protected)
- The government will retain nationality data internally for statistical and monitoring purposes
- This applies to all ownership transfer registrations, not just purchases (inheritance, gifts, etc.)
This is a disclosure requirement, not a restriction. It does not prevent anyone from buying property.
Source: Justice Minister Hiroshi Hiraguchi announcement, December 2025; reported by Japan Times.
Change 3: Foreign Corporations Must Report Nationality of Executives
Since April 1, 2026, foreign corporations purchasing large-scale land in Japan must report additional information about their corporate structure:
- The nationality of the corporation's representative must be disclosed
- If a majority of executives or shareholders share the same nationality, that nationality must also be reported
- This applies specifically to large-scale land transactions, not standard residential purchases by corporate entities
Source: Ministry of Land, Infrastructure, Transport and Tourism (MLIT) announcement, December 2025.
What About Future Restrictions?
The ruling LDP–Nippon Ishin coalition has stated that "a bill to strengthen regulations on land acquisition by foreigners and foreign capital will be formulated for the 2026 ordinary session of the Diet."
This means further restrictions could be introduced beyond the current reporting changes. However, no specific legislation has been tabled as of April 2026. We will update this article as new developments are announced.
Current FEFTA Reporting Requirements for Property Buyers
Who Must Report?
Any "non-resident" who acquires real estate in Japan. Under FEFTA, a non-resident is defined as:
- Individuals: A person who has maintained their principal residence outside Japan for more than six months, or who does not have a residence in Japan
- Corporations: An entity whose principal place of business is located outside Japan
A Japanese branch office of a foreign corporation is generally considered a "resident" entity for FEFTA purposes. Similarly, foreign nationals living in Japan on a valid residence card (在留カード) are typically classified as residents and are not subject to the non-resident reporting requirements.
What Must Be Reported?
Using Form 22 (Report on Acquisition of Real Estate in Japan, pertaining to Article 55-3 of FEFTA), the following information must be provided:
- Type of acquisition (purchase, inheritance, gift, etc.)
- Total area of the property in square meters
- Location (address) of the property
- Date of acquisition
- Purchase price or consideration paid
Where and How to File
| Detail | Information |
|---|---|
| File with | Minister of Finance, submitted via the Bank of Japan |
| Form | Form 22 (外為法第55条の3に基づく届出書) |
| Deadline | Within 20 days of the acquisition date |
| Who can file | The buyer directly, or an authorized agent (real estate broker, judicial scrivener) on their behalf |
| Language | Japanese (forms must be completed in Japanese) |
Required Documents
| Buyer Type | Documents Required |
|---|---|
| Non-Resident Individual | Sworn affidavit or notarized certificate of signature, plus passport copy |
| Non-Resident Corporation | Certificate of incorporation and certificate of business registration from home country |
All foreign-language documents must be accompanied by Japanese translations.
Current Exemptions (Updated April 2026)
The following exemptions exist under FEFTA. Note that the residential exemption was removed on April 1, 2026:
| Exemption | Status Since April 1, 2026 |
|---|---|
| Personal residence for buyer, family, or employees | Removed — reporting now required |
| Non-profit organizations acquiring property for business purposes | Still exempt |
| Property acquired for use as buyer's office | Still exempt |
| Property acquired from another non-resident | Still exempt |
Penalties for Non-Compliance
Failure to file the required FEFTA report can result in:
- Administrative fines imposed by the Ministry of Finance
- Orders to restructure or cancel the transaction in serious cases
- Criminal liability — under FEFTA Article 70, violations can carry imprisonment of up to three years or fines of up to ¥1 million (or both)
- Transaction unwinding if national security concerns are implicated under the expanded REIRA framework (see below)
In practice, most first-time filing failures are addressed through administrative guidance rather than criminal prosecution. However, the enforcement environment is tightening, and deliberate non-compliance carries increasing risk.
REIRA: Additional Rules for Properties Near Sensitive Facilities
Beyond FEFTA, the 2022 Act on the Review and Regulation of the Use of Real Estate Surrounding Important Facilities and on Remote Territorial Islands (重要土地等調査法, commonly referred to as REIRA) adds location-based screening requirements that foreign buyers should be aware of.
What Are Monitored Areas?
The Japanese government has designated certain zones around sensitive facilities as requiring additional oversight. These include properties within approximately 1,000 meters of:
- Self-Defense Force bases and military installations
- Japan Coast Guard facilities
- Critical infrastructure (nuclear power plants, airports, ports)
- Remote territorial islands with national security significance
What's Required?
- Monitored Areas (注視区域): Property transactions must be reported to the Prime Minister (via the Cabinet Office) before closing. The government reviews the transaction but cannot block it in most cases.
- Special Monitored Areas (特別注視区域): Stricter regulations apply. The government can impose use restrictions, and in some cases may issue orders to prevent or modify transactions involving properties of 200 square meters or more.
How to Check Before You Buy
Before purchasing property in Japan, verify whether the location falls within a monitored or special monitored area. Your real estate agent is required to disclose this information as part of the Important Matters Explanation (重要事項説明), but you can also check directly with the local municipal office or the Cabinet Office website.
FEFTA Rules for International Money Transfers
When transferring funds to Japan for a property purchase, several FEFTA-related financial reporting rules apply:
Bank Transfer Reporting
| Threshold | Requirement |
|---|---|
| Transfers over ¥30,000,000 (~$200,000 USD) | Receiving bank must file a Payment Report (支払報告書) to the Ministry of Finance via Bank of Japan within 10 days |
| Cash carried into Japan exceeding ¥1,000,000 | Must be declared at Customs upon entry |
| Bank transactions over ¥2,000,000 | Require identity verification under the Act on Prevention of Transfer of Criminal Proceeds |
Recommended Approach for Property Funds
- Use international bank wire transfer (SWIFT) for all property-related payments
- Clearly state the transfer purpose (e.g., "Real estate purchase in Japan — [property address]")
- Retain all documentation including the purchase contract, invoice from the seller, and bank transfer confirmations
- Property payments should always go through banks — cash transactions for real estate are impractical and create compliance issues
- If you need mortgage financing, funds will be disbursed domestically by the Japanese lender
Your Step-by-Step FEFTA Compliance Checklist
Before Purchase
- Confirm your FEFTA status: are you classified as a resident or non-resident?
- Check if the property is in a REIRA monitored or special monitored area
- If the property is in a special monitored area (200+ sqm), file advance notification with the Cabinet Office
- Prepare required documents: passport, sworn affidavit or notarized signature certificate
- Arrange your funds transfer via bank wire (not cash or cryptocurrency)
- Engage a qualified real estate agent and judicial scrivener (司法書士) familiar with non-resident transactions
Within 20 Days of Purchase
- Complete Form 22 (Report on Acquisition of Real Estate in Japan)
- Include all required details: property type, area, location, acquisition date, and purchase price
- Submit to the Minister of Finance via the Bank of Japan
- Keep copies of all submitted forms and supporting documents
Additional Requirements (In Effect Since April 1, 2026)
- Disclose your nationality during property registration at the Legal Affairs Bureau
- Submit passport or residence card copy as part of the registration process
- File Form 22 even for residential-purpose purchases (the exemption no longer applies)
For Corporate Buyers (In Effect Since April 1, 2026)
- Report the nationality of the corporate representative
- If a majority of executives or shareholders share the same nationality, that nationality must also be reported
- Ensure corporate registration documents from your home country are translated into Japanese
Frequently Asked Questions
Do I need to report if I'm buying a home to live in?
Yes. Since April 1, 2026, the residential exemption has been removed. All real estate acquisitions by non-residents now require FEFTA reporting via Form 22, regardless of whether the property is for personal use, rental income, or investment.
Can foreigners still buy property in Japan in 2026?
Yes. Japan has no restrictions on foreign property ownership. The 2026 changes that took effect on April 1 are about reporting and disclosure requirements, not purchase restrictions. Foreign nationals can continue to buy property under the same conditions as Japanese citizens. See our complete guide for foreign buyers for details.
What happens if I don't file the FEFTA report?
You could face administrative fines, orders to restructure or cancel the transaction, or in serious cases, criminal penalties including imprisonment of up to three years or fines of up to ¥1 million. While enforcement has historically been lenient, the regulatory environment is tightening.
What is Form 22?
Form 22 (formally: the report pertaining to Article 55-3 of the Foreign Exchange and Foreign Trade Act) is the official reporting form issued by the Bank of Japan for non-residents acquiring real estate in Japan. It must be filed within 20 days of the acquisition date. The form requires property details including type, area, location, date of acquisition, and purchase price.
Can my real estate agent file the report for me?
Yes. A licensed Japanese real estate agent (宅地建物取引業者) or judicial scrivener (司法書士) can submit the FEFTA report on your behalf. Most agents handling transactions with foreign buyers are familiar with the process.
Will my nationality be made public?
No. Under the new nationality disclosure requirement, nationality information will be retained as internal government data. It will not be listed in public real estate registries (登記簿). Privacy protections apply to all buyers.
Is the Japanese government going to ban foreign buyers?
There is no current proposal to ban foreign property ownership. The 2026 changes that took effect on April 1 focus on monitoring, reporting, and transparency — not restriction. However, the ruling coalition has indicated that further legislation regarding foreign land acquisition is under discussion for the 2026 Diet session (January–June). As of April 2026, no specific bill has been tabled. Any developments will be covered in updates to this article.
What about taxes on foreign-owned property?
Non-resident property owners in Japan are subject to the same property taxes as Japanese owners, including fixed asset tax (固定資産税) and city planning tax (都市計画税). Rental income is also taxable. Non-residents must appoint a tax agent (納税管理人) in Japan to handle tax matters.
Does this affect residents of Japan who are foreign nationals?
Generally, no. If you hold a valid residence card (在留カード) and maintain your principal residence in Japan, you are classified as a "resident" under FEFTA. The non-resident reporting requirements do not apply. However, the new nationality disclosure requirement for property registration applies to all buyers regardless of residency status.
What to Watch: 2026 Diet Session
The 2026 ordinary Diet session (January–June) is underway. The ruling coalition agreement committed to drafting a "bill to strengthen regulations on land acquisition by foreigners and foreign capital" for this session.
As of April 2026, no specific bill text has been tabled. JRE will update this article if new legislation is introduced.
Key developments to monitor:
- Whether the Diet tables a specific foreign land acquisition bill before June 2026
- Any expansion of the REIRA Act's designated zones to urban residential areas
- The Digital Agency's cross-government property ownership database (targeted for FY2027)
For the broader policy context — including scenario analysis of what future legislation might look like — see our 2026 foreign property ownership policy guide.
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Disclaimer
This article provides general information about FEFTA reporting requirements and the regulatory changes that took effect on April 1, 2026. It is not legal advice. Regulations may be further amended. Always consult with a qualified legal professional — such as a licensed attorney (弁護士) or judicial scrivener (司法書士) — familiar with Japanese real estate law for advice specific to your situation.
Sources referenced in this article include announcements from the Ministry of Finance, Ministry of Land, Infrastructure, Transport and Tourism (MLIT), the Ministry of Justice, and reporting by Japan Times and Stellex Law Firm (January 2026).