Requirements for a Domestic Contact When Foreigners Buy Real Estate in Japan

As of 2024, foreigners that want to buy property in Japan are required by law to include a domestic contact with an address in Japan when they update the property title registration during a purchase. In this post we provide on overview of the concept of domestic contact, and how it applies to real estate in Japan.

Japanese Domestic Contact for Real Estate Laws from 2021, Effective April 2024

As of 2021, there were changes to the laws regarding Japanese real estate registration (that were mostly related to property issues related to inheritance), including a mandate that foreign owners of real estate in Japan provide a “domestic contact” as part of their property title registration. This created a new role called the “domestic contact.”

As of April 2024, the law states that foreigners must provide a domestic contact during the process of buying real estate in Japan. That domestic contact is to be recorded in the property registration during closing.

There is some evidence there is no penalty for not providing a domestic contact in a Japanese property transaction.

Requirements of a Domestic Contact for Foreign Real Estate Transaction

The basic requirement is that when a buyer does not live in Japan, that they provide the name and address of a domestic contact (a person or a company) that lives in Japan, that is willing to receive communication when the government (or other parties) want to speak with the owner of the property.

See more here: Japanese domestic contact for real estate in Japan.

Who Can Provide Domestic Contact Services for Foreigners Buying Japanese Real Estate?

Domestic contacts for foreigners for real estate transactions in Japan can be a person or a company. They must be willing to provide this function to the foreign buyer/owner. They must be an adult, and have a permanent address in Japan that can be added to the property title during the sale of the property.

It is possible to have a local friend or relatively provide this service. Some real estate agents may provide this service to their clients (but that practice is not recommended, and should not be expected of a local Japanese real estate agent). Foreigners that want a practical solution may choose to have a Japanese tax administrator perform this function, a property management company in Japan, or potentially a tax accountant, attorney, or other professional service provider in Japan.

For introductions to professionals that can serve as a domestic contact, contact us, we’re happy to help.

Establish Your Relationship with a Domestic Contact Before the Sale is Completed

In terms of the timing of when the Japanese domestic contact for real estate is needed in the real estate sales process, the contact information for the domestic contact is included in the paperwork that is completed on the day the real estate sale is concluded. In order to meet the requirements of the law, the name and address for the domestic contact must be included in documents prepared in the days before the sale, and then included in the property registration changes reflecting the sale.

Because the documents related to the sale are prepared days or weeks in advance, it is recommended that you establish the relationship with a domestic contact three or four weeks before the sale (that should give you enough time). Once you have an agreement with your domestic contact, you can forward their name and address to the real agents agents involved in the transaction, and they can work with the judicial scrivener to have that information in place so it can be added to the title.

See our post the process of adding a domestic contact to real estate transaction in Japan.

Domestic Contacts for Hokkaido Property Transactions

As long as your domestic contact has an address in Japan, that address should satisfy the laws. There are many professionals and companies in Hokkaido that can not only serve as a real estate domestic contact, but that can be effective in that role – actually communicating with owners about issues or opportunities related to the property.

For an introduction to a company or service that can provide domestic contact duties for a real estate purchase, contact us, we are happy to help.

We work for you, not the real estate companies.

We provide person-to-person introductions to prescreened agents that help you sell, buy, lease, or rent property in Hokkaido. We search our custom database to connect you to real estate professionals that speak your language, address your needs and are available now to help you find what you want.

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For More Information:

— See our piece about various Taxes in Japan
— Our detailed Guide to Paying Property Taxes in Japan
— We provide a list of Sapporo Tax Offices
— In Hokkaido, there are areas with special rates for property taxes
— Our review of the role of Property Management Companies in Sapporo
— Buying Property in Hokkaido as a Foreigner
— Our list of Tax Accountants for Expats Living in Japan
— Our complete guide for Buying a House in Sapporo
— Our report on How to Rent an Apartment in Sapporo and Move-In Costs for Sapporo Apartments
— Find Lawyers in Hokkaido

See also:
— A guide to the concept of Domestic Contacts in Japanese Real Estate