Many buyers from the U.S. and other countries with global reporting systems face challenges when applying for property financing in Japan.
Often, the issue isn’t income level — it’s that income structure, residency status, and supporting documentation don’t align with Japanese bank requirements.
Japanese banks carefully assess:
• How income is structured and categorized
• Consistency across official income documents
• Residency status and tax classification in Japan
• meet Japanese underwriting standards
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How Japan Works (Important Distinction)
Japan does NOT tax based on citizenship.
Japan taxes based on residency status:
• Non-resident → Only Japan-source income is taxed
• Resident (first 5 years) → Japan income + foreign income paid into Japan
• Permanent Resident / Over 5 years → Worldwide income
So if you’re not a U.S. citizen, Japan alone generally applies — there is no automatic “double taxation” by default.
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Why Americans in Japan Feel “Double Taxed”
If you’re a U.S. citizen living in Japan, you must:
• File U.S. taxes (FEIE, FTC, FBAR, FATCA)
• File Japanese taxes
However:
The U.S.–Japan tax treaty and foreign tax credits usually prevent actual double payment.
What most people experience is double reporting and complex paperwork, which can directly affect how bank evaluations.
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What This Means for Property Buyers
In my experience
Some clients receive approval after re-applying with properly aligned documentation
Others need 12–24 months of preparation before meeting eligibility criteria
What makes the difference:
• Understanding how Japanese banks evaluate residency and income structure
• Preparing documents in a format bank can clearly assess
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Why I Take This Approach
My background includes work in a CPA office and ongoing experience in finance as an Independent Financial Advisor (IFA). This allows me to look beyond the property itself and help clients align their financial structure, documentation, and timing with how Japanese Banks actually check on evaluations
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Buying property in Japan as a foreign buyer isn’t just about finding the right home — it’s about preparation, structure, and timing.
If you’re planning to buy in Japan as a foreign national, PR, or overseas investor, I offer private strategy sessions focused on eligibility, documentation, and Japan Bank alignment.
PS.
If your agent turns you away due to a complex income structure, it often means you need a more experienced advisor who understands how Japanese lenders evaluate documentation and eligibility
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