A FEFTA report for foreign property in Japan is generally a post-transaction filing by a non-resident who acquires Japanese real estate or a right in it. The report goes to the Minister of Finance through the Bank of Japan, is completed in Japanese, and is normally due within 20 days after acquisition. It is not a general ban on foreign ownership, and "foreigner" is not the same as "non-resident."
That distinction is the heart of the rule. Before deciding whether to file, establish the buyer's FEFTA residence status, what was acquired, when acquisition occurred, and whether a current exemption applies. The Ministry of Finance's English reporting page should be the starting point.
FEFTA is a reporting regime, not a nationality test
FEFTA is the Foreign Exchange and Foreign Trade Act. For this property filing, the relevant category is a non-resident's acquisition of real property in Japan or rights relating to it.
A foreign passport does not automatically make someone a non-resident. The Ministry of Finance's February 2026 official property-reporting FAQ explains the working presumptions for foreign nationals: a person working at an office in Japan, or who has stayed in Japan for six months or more after entry, is generally treated as a resident, subject to exceptions such as diplomats and certain officials. Facts and legal definitions matter, so ask the Ministry or a professional if your position is unclear.
Conversely, a person who visits Japan frequently or owns a Japanese home can still be a non-resident. Ownership or rental of an overseas residence does not decide the filing question.
Use this first-pass matrix:
| Buyer situation | Likely next step |
|---|---|
| Foreign national living and working in Japan | Confirm FEFTA resident status; the non-resident property report may not apply |
| Overseas individual buying a holiday home | Treat reporting as likely and confirm with an adviser |
| Overseas company buying a rental building | Treat reporting as likely; identify the corporate representative and agent |
| Joint purchase by two non-residents | Each owner generally files separately for their share |
| Inheritance by a non-resident | Reporting can apply even with no purchase price |
What acquisitions are covered
The Ministry of Finance says the regime covers real property and rights on it. Its FAQ gives leasehold, superficies, and mortgages as examples of rights. The same FAQ clarifies a technical point that can otherwise confuse translations: ownership itself is real property, rather than a "right to real property" for that specific wording, but acquisition of the ownership remains reportable.
There is no minimum acquisition price or minimum land area. The official FAQ says Form No. 22 can be required even when the acquisition amount is ¥0, including inheritance and bequests.
Examples that should trigger a check include:
- buying land, a house, or a condominium;
- acquiring a building on leased land;
- acquiring or creating a leasehold or other covered right;
- constructing an apartment building as a non-resident;
- inheriting Japanese real estate; and
- taking a share through joint ownership.
The filing is about the acquisition, not only about how money crosses the border. A separate payment-reporting rule can also affect the Japanese recipient when a single payment from a non-resident exceeds the relevant threshold. Do not assume a bank's remittance checks complete the buyer's Form No. 22 obligation.
The post-April 2026 exemptions
For acquisitions on or after April 1, 2026, the Ministry's FAQ identifies three circumstances in which reporting is not required for the acquisition of rights to real property:
- the non-resident acquires the rights for residential use by themselves, relatives, employees, or other workers;
- a non-resident engaged in non-profit activities in Japan acquires the rights for its operations; or
- the non-resident acquires the rights for its own office use.
These exemptions must be handled carefully.
First, the FAQ says holiday homes and second homes do not count as residential purposes for this exemption. Second, when a non-resident buys a building on leased land for an exempt residential purpose, the FAQ says reporting can still be required for the building, even if the leasehold right qualifies for the exemption. Third, original intent matters. A genuine future move delayed for relocation or preparation may be treated differently from an indefinite plan that leaves open rental, resale, or second-home use.
Do not turn the exemption into the blanket statement "homes do not need reporting." Separate land ownership, building ownership, and associated rights, then obtain advice on each.
Calculate the 20-day deadline conservatively
The law uses acquisition as the trigger. The Ministry's FAQ says the acquisition date should be one of the following as appropriate:
- the sales-contract date;
- the ownership-transfer date or mortgage-creation date; or
- the inheritance-determination date.
Because different transactions crystallize at different points, ask the closing lawyer or judicial scrivener to identify the date used before signing. Do not automatically count from payment, handover, or registry completion.
If day 20 is not a Bank of Japan business day, the deadline extends to the next business day. A postal filing must arrive by the deadline, not merely be postmarked. Build the filing into the closing checklist rather than trying to resolve it afterward.
What Form No. 22 needs
The filing is commonly described as Form No. 22, the capital-transaction report for a non-resident's acquisition of real property in Japan. The current form and Japanese completion guide should be obtained from the official Ministry of Finance or Bank of Japan materials at the time of filing.
Prepare:
- acquirer's legal name and overseas address;
- nationality, or country/region of a corporate acquirer;
- corporate representative and business activity, where relevant;
- property description and location;
- type of property or right acquired;
- acquisition date and amount;
- ownership share;
- purpose of acquisition; and
- details of the Japan-resident agent, if one files.
The Ministry's official overview says the report must be written in Japanese. It may be submitted by the non-resident acquirer or by an agent residing in Japan.
Joint ownership and multiple properties
Joint owners cannot combine themselves into one filing. The official FAQ instructs each owner to file separately and report the area and value corresponding to that owner's share.
Multiple properties acquired in the same period can be included in a single report if each property is itemized clearly. That is useful for a portfolio acquisition, but it does not eliminate the need for accurate property-level data.
A practical workflow for buyers
Before contract
- Ask whether the buyer is a FEFTA resident or non-resident.
- Identify the precise asset: land, building, condominium interest, leasehold, mortgage, or a combination.
- Record intended use honestly.
- Appoint a Japan-resident agent if language, time zone, or online filing makes self-filing impractical.
- Put the issue on the lawyer's and judicial scrivener's written scope; do not assume it is included.
At contract and closing
- Confirm the legally relevant acquisition date.
- Preserve the signed agreement and property schedule.
- Allocate value and area by co-owner share.
- Collect romanized and Japanese-rendered names consistently with the registration documents.
- Calendar an internal deadline earlier than the statutory one.
After filing
- Keep the submitted form, delivery or electronic receipt, underlying documents, and the advice relied on.
- If facts change before filing, update the form rather than forcing it to match the original plan.
- If the deadline was missed, file promptly and explain the delay. The Ministry FAQ specifically instructs late filers to submit as soon as possible with a brief explanation.
Penalties make "I did not know" a poor strategy
The Ministry FAQ states that failure to report, or making a false report, can be subject under FEFTA Article 71 to imprisonment for up to six months or a fine of up to ¥500,000. The reporting system exists to monitor cross-border capital flows.
The practical lesson is not to panic; it is to assign ownership. Your broker finds and negotiates property. Your judicial scrivener handles registration work within the agreed scope. Neither role automatically guarantees FEFTA analysis or filing. Name the person responsible in writing.
How FEFTA fits into the wider purchase
FEFTA is one compliance item among several. A non-resident buyer also needs to plan source-of-funds checks, title registration, tax representation where applicable, annual ownership taxes, insurance, and succession. Our foreign-buyer purchase guide provides the wider sequence, while the Japan property-tax guide for foreign owners explains recurring and transaction taxes.
Use Nipponhomes property search or explore homes on the map for discovery. If you are comparing common entry markets, review Tokyo property listings and homes in central Osaka, but resolve reporting responsibility before completion—not after finding a property.
Sources
- Ministry of Finance — Reporting Requirement Under FEFTA for a Non-Resident Acquiring Real Property in Japan
- Ministry of Finance — official FEFTA real-property reporting FAQ, February 2026
- Bank of Japan — FEFTA procedures and reporting materials
- Bank of Japan — overview of the FEFTA reporting system
Important note
This article is general information, not legal advice. FEFTA residence classification, exemptions, forms, and deadlines can change, and the correct treatment depends on the transaction facts. Confirm the current rules with the Ministry of Finance, Bank of Japan, and a qualified Japanese lawyer or other adviser before acquisition.