Buying Okinawa property from abroad: reports, tax agent and payment

Are you a non-resident?

Two different tests matter, so check both. Under the foreign exchange law, foreign nationals are generally treated as non-residents unless they work at an office in Japan or have been in Japan for six months or more. Tax has its own rules, so ask a tax professional about your position. Coming and going often does not settle it. The Ministry of Finance says someone who buys a home to use during stays must still file if they count as a non-resident.

Report the purchase within 20 days

For purchases from 1 April 2026, a non-resident who buys property in Japan reports it to the Ministry of Finance through the Bank of Japan within 20 days, whatever the price or purpose.

• The report must be in Japanese. A resident agent can file for you, online.
• Each buyer files their own report. Joint buyers report their own share.
• Set a date for this before closing, and agree who files it.

Appoint a tax agent if you have filings

If you need to file a tax return in Japan, for example on rental income or a sale, you must appoint a tax agent (nozei kanrinin) and notify the tax office. The agent files and pays on your behalf and can be an individual or a company.

Ask early who will do this. It is much easier to arrange before there is a deadline.

If you plan to rent it out

A tenant or company paying rent to a non-resident generally withholds 20.42% as income tax. This does not apply to rent paid by an individual renting a home for themselves or their relatives to live in. Non-residents may still need to file a return.

Short-term letting under the private lodging law is limited to 180 days a year, and a local ordinance may restrict it further. Check the municipality's rules for the actual address, and check the building's rules too.

If the seller is also a non-resident

A buyer paying a non-resident seller for land or a building in Japan generally has to withhold 10.21% from the payment. Ask the broker and a tax professional whether this applies before you settle the payment. Check who the seller is early.

Before you send money

Do not treat a listing as settled until you have checked it. Confirm these in writing first:

• Who you are paying and why that account
• What is paid at contract and what at closing
• Who handles the registration and when
• Who files the report and appoints the tax agent
• Who will look after the property while you are away