Buying Japanese property from Taiwan

Ownership is open; the process is local

Japan does not, as a general matter, restrict the ownership of land and buildings by nationality or place of residence. A buyer living in Taiwan may hold freehold title in their own name and have that title recorded in the property register. The question, therefore, is rarely whether a purchase is possible. It is how the purchase is conducted. Japanese practice is formal and sequential: before any contract is signed, a licensed real-estate agent delivers a written explanation of important matters; the parties then perform against a fixed calendar set out in the contract; and on the completion date the balance of the price and the transfer of registered title occur on the same day. Because the process turns on documents and dates, late changes are difficult. Settling the timetable and the funding early tends to be more effective than correcting either afterwards.

What a purchase usually involves

• A written explanation of important matters, delivered by a licensed agent before signing
• A deposit on contract, with the balance settled in full on the completion date
• Registration of the transfer of title by a judicial scrivener on that same day
• Identity documents and a certified signature attestation where the buyer has no Japanese residence record
• Appointment of a tax agent in Japan to receive notices relating to holding taxes
• Advance confirmation with banks in both places of the remittance route, papers and value date

The costs that follow the price

Acquisition brings several one-off charges: a real-estate acquisition tax, a registration and licence tax on recording the transfer, stamp duty on the contract, and the agent’s commission. Holding brings recurring charges: an annual fixed-asset tax and a city planning tax, and, in a condominium, a monthly management fee together with a contribution to the building’s repair reserve. The amounts depend on the asset, its location and the law in force at the time, so no general figure is meaningful. The practical step is to ask partner specialists, at the offer stage, to estimate both the acquisition costs and a full year of holding costs, so that the decision rests on the total cost of ownership rather than on the headline price alone.

Distance, lending and currency

Japanese lenders take differing positions on non-resident borrowers. Some will lend on conditions, others will not consider an application at all, and the conditions may involve whether the buyer has a Japanese company, a status of residence, or an existing banking relationship. Many buyers in Taiwan therefore complete with their own funds and revisit financing later. Currency and the timing of the remittance deserve the same early attention, since a completion date, once fixed, is not easily moved. Where travel is difficult, a purchase can be completed through a power of attorney and certified documents, though seeing the building and the street at least once often changes a view. Depending on the matter, we introduce partner real-estate agents and qualified specialists in each field, who give their opinions within the scope of their own practice.

This note is general information and is not tax, legal, investment or immigration advice. Circumstances differ from case to case and rules change over time, so any decision should be confirmed with qualified professionals in the relevant field.