Do You Need Permanent Residency to Buy a Home in Japan? Purchase and Loan Realities by Visa Status
On August 4, Japan's Immigration Services Agency published a draft revision to its permanent residency guidelines. Under the proposal, applicants would need to keep earning above the average income of Japanese households, and their projected pension — based on 30 years of employees' pension contributions — would need to meet a certain level. Public comments are open until midnight on September 4, and the agency plans to finalize the guideline in October. Reports say the income requirement is planned to apply to applications submitted from April this year onward.
Some readers may worry that if permanent residency becomes harder to get, buying property in Japan will become harder too. The short answer: permanent residency is not a legal requirement for buying real estate in Japan. What does change with your visa status is how easy it is to get a mortgage. This article walks through the practical differences.
Do You Actually Need Permanent Residency to Buy?
Japan's Civil Code does not distinguish ownership rights by nationality or visa status. Even on a short-term or work visa, a foreign national can legally purchase property and register it in their own name. Permanent residency, or Japanese citizenship, is not a legal precondition for the purchase itself.
How Does Mortgage Screening Differ for Permanent vs. Non-Permanent Residents?
Using a mortgage rather than paying cash is a different story. Most lenders design mortgage products around permanent residents, spouses of Japanese nationals, and special permanent residents. Other visa categories often face limited lender options or higher down-payment requirements.
This comes down to risk: a fixed-term visa carries renewal risk, and recovering a loan from someone who has left Japan is harder. Permanent residents have no defined period of stay, which makes long-term lending risk easier for banks to assess.
Typical mortgage terms by visa status (general guide)
- Typical down payment, permanent residents / spouse visas
- 10-20%
- Typical down payment, other work visas etc.
- 30-50%
- Typical max loan term, permanent residents
- 35years
- Typical max loan term, non-permanent residents
- 20-25years
Varies by lender and property
Some lenders don't offer these loans at all
Depends on age and income
Varies significantly by lender
If Permanent Residency Gets Harder, Should You Rush to Buy Now?
If the draft guideline is finalized in October as reported, future permanent residency applicants will face clearer requirements around income, pension projections and Japanese-language ability. Reports say the income requirement is planned to apply to applications submitted from April this year onward.
There's no single right answer to "should I rush to buy before the rules change?" Mortgage terms depend on your visa status, but the purchase itself doesn't require permanent residency, so rather than rushing, it's more practical to check what specific lenders will offer given your current status.
What Extra Documents Do Non-Permanent Residents Need?
Non-permanent residents applying for a mortgage may be asked for more than income and tax certificates — lenders may also want to see the remaining period on your residence card, an employment verification letter, and an explanation of assets held in your home country. If you're funding the down payment via an international transfer, having documentation of the transfer's purpose ready in advance tends to speed up screening.
Points worth comparing between permanent and non-permanent residents
| What to check | Permanent residents / spouse visas etc. | Other work visas etc. |
|---|---|---|
| Number of lenders offering loans | Relatively many | Can be limited |
| Typical down payment | Around 10-20% | Around 30-50% as a guide |
| What screening focuses on | Mainly income and credit history | Also residence period and departure risk |
| Can you buy at all? | Yes | Yes (cash purchase is also an option) |
Laws Worth Knowing
- Civil Code, Article 206
- Owners may freely use, profit from, and dispose of their property within the limits of law, with no special restriction based on nationality or visa status.
- Real Property Registration Act, Article 3
- Defines the types of rights, including ownership, that can be registered — registering ownership under your own name is not blocked by foreign nationality or overseas residence.
- Immigration Control and Refugee Recognition Act, Article 22
- Sets out the requirements for permanent residency, granted at the Minister of Justice's discretion. The draft guideline revision reported here is a review of the operational standards under this article.
Common Oversights and Fixes
✕Built a financing plan around a smaller down payment on the assumption permanent residency was "coming soon," then a visa status change just before screening left the down payment short.
→Calculate your down payment and borrowing capacity based on your visa status at the time of application, and revisit terms only once a status change is confirmed.
✕Applied the favorable terms typically offered to permanent residents to their own non-permanent situation, then found the actual required down payment was much higher.
→Check down payment and term guidelines by visa status with multiple lenders before starting your property search.
✕Funded the down payment entirely through an overseas transfer without preparing documentation of its source, which delayed screening significantly.
→Prepare documentation showing the purpose and source of funds early, and consult with the lender in advance.
Checklist for Non-Permanent Residents Before Buying
- Checked with multiple lenders whether they offer mortgages for your specific visa status
- Confirmed typical down payment requirements by visa status with individual lenders
- Compared your residence card's remaining period against the mortgage screening timeline
- If funding the down payment via overseas transfer, prepared documentation of the transfer's purpose
- Made sure the financing plan doesn't rely solely on an expected permanent residency approval
- Considered a cash purchase as an alternative option
Frequently Asked Questions
- Q. Do I need permanent residency to buy property in Japan?
- A. No — permanent residency is not required for the purchase itself. If you're using a mortgage, though, terms vary by visa status depending on the lender.
- Q. Can I get a mortgage on a work visa?
- A. Some lenders offer this, but compared to permanent residents or spouse-visa holders, you may face a higher down-payment requirement or a shorter maximum loan term.
- Q. If permanent residency requirements get stricter, how does that affect future applicants?
- A. Reports say the income requirement is planned to apply to applications submitted from April this year onward. The guideline is set to be finalized in October, and further details should be confirmed as they're published.
- Q. What if I can't afford the down payment being asked for?
- A. Options include looking at lower-priced properties, extending your savings timeline, or comparing terms across multiple lenders. A cash purchase is also worth considering as an alternative to financing.
The SUMIMOTO Hub app uses AI to give you a multilingual guide to typical loan terms by visa status and reference property pricing, with a 24-hour AI advisor to walk you through the purchase process. For your actual mortgage screening or visa-related questions, we recommend confirming details individually with a licensed lender or gyoseishoshi (administrative scrivener).
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