The Japanese government announced on Tuesday (December 16) that it will significantly strengthen the reporting obligations for foreign corporations and individuals acquiring land and real estate in Japan to enhance market transparency and address concerns over foreign acquisition of water sources, forests, and residential areas. The related measures are still being coordinated within the government, and some details will be implemented gradually from the fiscal year 2026.
Minister of Land, Infrastructure, Transport and Tourism Kyoshi Kaneko announced at a press conference after the Cabinet meeting that starting from April 2026, foreign corporations purchasing large-scale land in Japan must declare the nationality of the corporation’s representative. As for individual buyers, the Japanese government has been requiring disclosure of nationality when purchasing land since July of this year.
Currently, the existing system only requires corporations to fill in the laws of which country they are established under during registration, without being able to grasp the actual controllers or sources of capital behind them. To enhance transparency, the new system will further require disclosure if more than half of the directors or shareholders of a company belong to the same nationality. Kaneko emphasized that this move aims to more accurately understand the involvement of foreign capital in Japanese water sources and forests and prevent their improper use.
According to the National Land Use Planning Law, transactions involving commercial or residential land areas exceeding 2,000 square meters, non-urban agricultural land exceeding 5,000 square meters, and mountain forests exceeding 10,000 square meters require reporting to the government. The new system will further enhance information transparency and analytical capabilities on top of the existing regulatory thresholds.
Finance Minister Gaku Yamayama stated at the same press conference that the relevant regulations of the Foreign Exchange and Foreign Trade Act will be revised, and starting from April 2026, foreigners acquiring real estate in Japan, whether for investment or residential purposes, must report within 20 days. Currently, reporting is only required for investment purposes, with residential use exempted.
Yamayama pointed out that there have been cases where foreigners purchased houses under the guise of residence but did not actually reside in them, stating that relying solely on stated purposes for reporting lacked effectiveness, hence the decision to make reporting mandatory in all cases. This reform is expected to be completed by February 2026 through ordinance revisions.
Prime Minister Saori Takichi had previously requested in relevant meetings for various ministries to establish a more comprehensive mechanism for tracking foreign ownership of real estate to address domestic concerns regarding transaction transparency and security risks.
Justice Minister Hiroshi Hiraguchi also announced simultaneously that a “nationality column” will be added to real estate registration application forms and submission of passport and other identification documents will be required.
These pieces of information will be integrated into the internal databases of government agencies, managed by the Digital Agency, and will not be publicly disclosed to balance privacy and policy needs. The system revision is expected to be completed within the current fiscal year and officially implemented from the fiscal year 2026.
In recent years, there has been an increase in cases of foreign acquisitions of forests, water sources, and remote islands in places like Hokkaido, sparking discussions in Japan on national security, resource preservation, and investment transparency. Several local governments have requested the central government to strengthen real understanding to prevent misuse or lack of information transparency.
In 2021, Japan enacted the Important Land Survey Law, which regulates the land use around important facilities such as Self-Defense Force bases. This current measure expands the scope of regulation from specific areas to the general land and overall real estate market, reflecting the central government’s desire to address foreign expansion and societal concerns with a more comprehensive institutional framework.