• Natural environment: Hokkaido has beautiful natural landscapes and distinct seasons with pleasant climates. Especially in winter, Hokkaido's skiing resorts and hot spring resorts are very popular, attracting a large number of tourists.
  • Quality of life: Hokkaido has many safe, peaceful, and comfortable communities and towns, providing high-quality living experiences. In addition, Hokkaido's medical facilities and education resources are also excellent.
  • Purchasing power growth: Hokkaido's economic development has been stable, providing many investment opportunities. Furthermore, with the economic growth of Southeast Asian countries and China, the purchasing power of people in these regions is increasing, which has a positive impact on Hokkaido's real estate market.
  • Government policies: The Hokkaido government actively promotes the development of the tourism and real estate industries, providing many conveniences and support for investors. In addition, the Hokkaido government encourages companies and investors to invest in the local area through various policies.
  • The investment opportunities in Hokkaido are abundant, and factors such as its beautiful natural environment, high-quality living, stable economy, and government policies can all be reasons for investors to consider investing in the local area.

  • Rising property prices: Hokkaido's tourism and real estate markets have steadily grown in recent years, which may cause property prices to rise.
  • Rental income: As Hokkaido is a popular tourist destination, property rental may bring stable cash flow.
  • Additional value: Some real estate developers offer high-end residences and resorts, providing investors with a luxurious living experience and increasing the additional value of the property.

  • Earthquake risk: Hokkaido is located in an earthquake-prone area, and earthquakes and tsunamis are the most common natural disasters in the area.
  • Weather changing risk: Hokkaido has long winters, and heavy snowfall and cold temperatures may affect the construction and maintenance of properties.
  • Dependency risk: The local economy is highly dependent on the tourism industry, so economic fluctuations may affect the tourism industry and real estate market.

  • Carefully select properties: Before investing, evaluate factors such as construction quality, location, and leasing potential of the property.
  • Hire a professional property management company: A professional property management company can provide support for maintaining the property and assistance in managing leases, ensuring property appreciation.
  • Diversify risks: Investors can diversify risks by investing in multiple properties, regions, and industries.
  • Understand the local market: By understanding local economic and real estate market trends, investors can make wiser investment decisions.

  • Real estate acquisition tax: Foreigners are required to pay real estate acquisition tax when purchasing real estate in Hokkaido.
  • Fixed asset tax and urban planning tax: Investors need to pay annually the following taxes based on the declared value of the property:
    • Fixed asset tax rate of 1.4% of the declared value of the property.
    • Urban planning tax of 0.3% of the declared value of the property.
  • Income tax: If foreigners rent out real estate in Hokkaido and receive rental income, they are required to pay the corresponding income tax, and the specific tax rate depends on the amount of rental income. Rental income belongs to the taxable object of personal income tax, but in the first five years, it can be offset by accelerating depreciation expenses. Interest payments can also offset rental income.
  • Transfer income tax: If foreigners sell real estate in Hokkaido and receive sale proceeds, they are required to pay the corresponding transfer income tax, with a tax rate of 30%. If the property is held for more than 5 years, the tax rate is 15% of the income.
  • Withholding tax: When foreigners sell real estate in Japan, they usually need to deduct a portion of the withholding income tax when they receive the funds. According to Japanese tax law, the withholding tax rate is 10% of the source deduction amount.

In addition to the above tax issues, foreigners also need to pay attention to local tax regulations and related procedures, such as tax declarations and tax deductions. To ensure that investors can comply with local tax regulations, it is recommended to consult with professional tax advisors or lawyers.

  • Apartments or houses: Can choose to live in or invest in rental properties, or consider purchasing vacation homes in resort areas.
  • Commercial real estate: Can invest in commercial properties such as office buildings, shopping malls, hotels, and inns.
  • Land: Can purchase undeveloped or developed land and develop or sell it.

Investors can choose investment options based on their investment goals and risk tolerance.

  • Long-term investment: The real estate market in Hokkaido may fluctuate, but the long-term trend is stable. If your investment time is long enough, you may see good returns.
  • Commission management: If you are not in Hokkaido or do not have enough time and ability to manage your investment property, you can consider hiring a professional property management company to manage it for you.
  • Understand the local market: Before making investment decisions, it is essential to understand the local market conditions. You can check real estate reports, the local rental market, land prices, development plans, etc.
  • Consider taxes: When you invest in real estate in Hokkaido, you need to understand the local tax policies, including declaration, tax deductions, and tax avoidance strategies, etc.

  • Annual payment of fixed asset tax and city planning tax
    • The fixed asset tax rate is 1.4% of the announced current value of the real estate.
    • The city planning tax is 0.3% of the announced current value of the real estate.
  • Property management fee: The property management company is responsible for maintaining and managing the property, providing daily repairs, cleaning, snow removal, security, and other services. The management fee is usually charged according to the size and type of the property, and paid monthly or annually.
  • Insurance costs: Property insurance is usually purchased by the property owner to protect the property from natural disasters, theft, and damage risks.
  • Rental and management fees: Pay the rental and management fees to the rental and management company, usually 5% of the rent received (consumption tax not included).
  • Tax agent + tax accountant: If the tenant is a legal entity, and the tax needs to be reported, a tax accountant needs to be hired to help file the tax return, which costs about 30,000 yen/year.

  • Are there any restrictions on foreigners buying properties in Japan?
    • Foreigners have no special restrictions on buying properties in Japan. Foreigners can own real estate after registration. The necessary documents for the transaction need to be processed according to relevant regulations.
  • Can a company purchase and register in its name?
    • Both local and overseas corporate entities can purchase and register real estate, but there are many factors that corporate entities need to consider. If necessary, please contact us for individual consulting services.
  • Can two or more people be registered for a property purchase in Japan?
    • Yes, and Japan can agree on the proportional registration of multiple persons. Therefore, you can choose the proportion and funds need to be remitted according to the proportion registered.
  • Can the name of a child be registered for a property purchase?
    • After purchasing a property, it can be registered under the name of a child, and regardless of whether the child is an adult, the child's account must be used for remittance.

  1. Prepare the contract and send it to the seller and buyer for review.
  2. The judicial scrivener will contact the buyer and arrange a power of attorney document for the buyer to sign, allowing them to act on behalf of the buyer.
  3. The judicial scrivener will prepare a legal statement for the buyer to confirm their identity.
  4. After contract review and confirmation, the contract will be sent to the seller for signature and then to the buyer for signature. Electronic signing is now available, allowing the buyer to save on stamp duty and postage fees.
  5. One week before the settlement date, the final funds will be transferred from the buyer to Yes Hokkaido's account. On the settlement day, all documents will be consolidated, and the property will be transferred.
  6. The ownership deed will be sent to you within two weeks after the completion of the contract.

  1. Brokerage fee: 3% of the total price + 60,000 yen plus 10% consumption tax.
  2. Judicial scrivener fee: depending on the size and complexity of the sale.
  3. Registration license tax: 2% of the assessed value of the fixed asset tax.
  4. Stamp duty: approximately 5,000 to 60,000 yen (this fee can be waived for electronic signing).
  5. Real estate acquisition tax: (3-6 months after purchase)
    Land: Assessed value of fixed asset tax x ½ x 3%
    Building: Assessed value of fixed asset tax x 3%

Foreigners cannot open bank accounts or apply for loans from local banks in Japan unless they work for a large corporation in Japan and can provide proof of stable income.