Photo/Illutration Kimi Onoda, the minister in charge of policies on foreign nationals, at a news conference on Dec. 16 (Takahiro Takenouchi)

The government will require individuals to declare their nationality for property transfers and purchases of forest land under new measures aimed at clarifying the picture of real estate acquisitions by foreign nationals.

Other measures announced on Dec. 16 include expanding the scope of reporting requirements to the government for non-residents who acquire real estate.

The government also plans to obligate corporations involved in large-scale land transactions or in acquiring land around defense-related facilities to report the nationality of their representatives.

All of these measures are scheduled to be implemented within the next fiscal year.

A review of regulations governing real estate ownerships is a pillar of Prime Minister Sanae Takaichi’s initiative to tighten policies on foreign nationals.

After collecting information, the government plans to establish a centralized database in or after fiscal 2027 to manage property acquisition records.

“To dispel public anxiety about foreign ownerships of properties, we will explore ways to appropriately publish the information we gather,” Kimi Onoda, the minister in charge of policies on foreign nationals, told a news conference on Dec. 16.

After gaining a better understanding of the situation, the government and the ruling coalition will contemplate imposing restrictions on real estate acquisitions by foreign nationals.

Takaichi has in the past considered pushing legislation on this matter.

At a Liberal Democratic Party meeting on Dec. 3 to discuss policies on foreign nationals, the government presented examples of restrictions introduced in other countries.

“We want to discuss what measures should be taken in response to current social conditions,” Yoshitaka Shindo, who heads the LDP’s Headquarters for Foreign Nationals Policy, said, referring to those cases.

Several regulatory proposals have emerged within the party.

One proposal involves revising the land use regulation law, which allows authorities to investigate how land around facilities vital to national security is being used, and to issue orders with penalties against activities that undermine the functions of such facilities.

Suggestions have been made to expand areas subject to those investigations and require prior screening for land acquisitions.

Some lawmakers have even floated the idea of imposing taxes on foreign nationals who buy real estate.

The LDP plans to consolidate opinions and submit recommendations to the government as early as the beginning of next year.

However, concerns have been raised that excessive regulations of real estate transactions could hinder economic activity driven by investment. Questions also remain about the effectiveness of prior screening.

A senior official at the prime minister’s office emphasized that discussions are still in the early stages.

“We are not even at a point where we can call it a formal consideration,” the official said.

Fundamentally, implementing regulations targeting foreigners alone is considered difficult because Japan is a signatory to World Trade Organization agreements that uphold the principle of non-discrimination.

Some LDP lawmakers have suggested that Japan could realize foreigner-specific regulations through a political decision by the prime minister, noting that some countries have introduced restrictions despite concluding WTO agreements under the same conditions as Japan.

Even so, experts have said a careful judgment is required to avoid damaging Japan’s international credibility.

Takaichi has indicated in the Diet that it is necessary to establish certain safeguards in a manner that does not violate international law.

 

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