Starting a Minpaku in Osaka as a Foreign Investor (2026): The New Rules After the Special-Zone Program Ended

The answer to "Can I buy property in Japan as a foreign national?" is a clear yes. Japan places virtually no nationality-based restrictions on real estate ownership: foreigners, including non-residents living overseas, can purchase land and buildings in their own name and register full ownership. No permanent residency or visa is required for the purchase itself. Among major markets — many of which restrict foreign ownership — this openness is a defining feature of Japan.

Osaka in particular attracts overseas investors, thanks to direct access from Kansai International Airport, rich tourism assets, and property prices well below Tokyo's. When the yen is weak, properties look even more affordable in home-currency terms, and inquiries about buying property for lodging businesses continue to grow year by year.

However, being able to buy and being able to operate legally as a minpaku are entirely different questions. Lodging in Japan is a licensed or notified business, and 2026 brought a major regulatory change. This article walks through what foreign and overseas-based investors need to know to start a minpaku in Osaka.

If you have researched Osaka minpaku before, you may know the term "Special Zone Minpaku" (tokku minpaku) — a National Strategic Special Zone program available in Osaka City with no cap on annual operating days, long the main route for tourist-oriented rentals. That program stopped accepting new certification applications on May 29, 2026.

Existing certified facilities may continue operating, but anyone starting fresh now has two legal routes. (1) A Hotel Business Act license (such as simple lodging / kani-shukusho): no limit on operating days, license-based, with relatively strict zoning and facility requirements. (2) A notification under the Private Lodging Business Act (the "Minpaku New Law"): easier to start, but capped at 180 nights per year. Which route you choose reshapes both your property criteria and your financial projections.

Much of the English-language information online still assumes the special-zone program exists. Any plan made from 2026 onward must start from the two-route choice: hotel license or Minpaku New Law. Buying a property based on outdated information is the single most damaging mistake a foreign investor can make here.

Under the Minpaku New Law, your obligations depend on whether you live in the property. An overseas owner is by definition an "absent host," and in that case the law requires you to outsource management to a "private lodging management company" registered with Japan's Minister of Land, Infrastructure, Transport and Tourism. Managing remotely yourself is not a legal substitute.

A registered management company performs the statutory duties: ensuring guest safety, providing foreign-language guidance, explaining noise rules, handling neighbor complaints, and maintaining the guest register. If you operate under a hotel business license instead, you still need identity verification and emergency-response arrangements in practice — so for overseas owners, a trustworthy local operating partner is indispensable under either route.

For an overseas investor, then, choosing your management partner is as important a decision as choosing the property itself. Before signing, verify the company's registration number, the exact scope of services and fees, reporting frequency, and termination terms in writing. Our separate pre-contract checklist article for management companies covers this in detail.

The purchase procedure itself is much the same as for Japanese buyers: find a property through a licensed broker, sign the sales contract, settle, and register the ownership transfer. Overseas residents need additional paperwork, such as a certificate of residence and a signature certificate (in place of Japan's registered-seal certificate) issued by the Japanese embassy or consulate in your country. Completing a purchase without visiting Japan is possible, but requires coordination with a judicial scrivener.

The biggest practical hurdles are bank accounts and remittances. Non-resident foreigners generally cannot open Japanese bank accounts, so purchases are typically settled by international remittance. Receiving lodging revenue also needs planning — where booking platforms pay out, and whether settlement runs through your management company, should be designed with your operating partner in advance.

On financing, we will be honest: most Japanese financial institutions are reluctant to lend against real estate to non-residents, and cases where a non-resident can use a Japanese mortgage are limited. Planning around a cash purchase or financing in your home country is realistic. Lending decisions are case-by-case, so confirm directly with financial institutions.

Income from Japanese real estate is taxed in Japan even if you live overseas. Lodging business profits generally require an annual tax return, property ownership incurs fixed asset tax, and purchases incur real estate acquisition tax and registration tax, among others.

A mechanism specific to non-residents is the appointment of a "tax agent" (nozei kanrinin). A person without an address in Japan who owes Japanese tax normally designates a tax agent — typically a licensed tax accountant — to file and pay on their behalf. Withholding rules can also apply to payments made to non-residents, and the treatment of your lodging revenue varies with how the operation is structured.

Taxation is further complicated by the tax treaty between Japan and your country of residence. Take away just the framework from this article — you will file in Japan, and you will need a tax agent — and consult a tax accountant experienced in international taxation for actual amounts and filing methods.

We want to be frank about the language barrier. Hotel business license applications, Minpaku New Law notifications, all interactions with the authorities, application documents, and prior consultations with the public health center and fire department are conducted in Japanese. English-capable service counters are limited, and contracts, statutory disclosure documents, and condominium bylaws are authoritative in Japanese.

In practice, what separates success from failure for a foreign investor in Osaka is assembling a team of partners who can drive the procedures in Japanese: a licensed real estate broker, an administrative scrivener (permits), a judicial scrivener (registration), a tax accountant, and the management company that will run the property. With the right team, opening and operating from overseas is entirely achievable.

Conversely, be wary of anyone who breezily promises "we handle everything in English" or "you'll profit immediately." Japanese permits are highly property-specific, and honest professionals answer "let us check the property and confirm with the authorities first." Seek multiple professional opinions and never let anyone rush you into a contract — doubly important when investing from abroad.

The essentials: (1) Foreigners can buy Japanese property. (2) The special-zone program closed to new applications on May 29, 2026 — the routes now are a hotel business license or the Minpaku New Law (180 nights/year). (3) Overseas owners must outsource to a registered private lodging management company. (4) Bank accounts, financing, and taxes carry real hurdles — you will need a tax agent and an internationally experienced tax accountant. (5) Procedures run in Japanese, so your local partner team decides the outcome. Hold on to these five points and you will not go far wrong.

This article reflects general information at the time of writing. Regulations, tax rules, and financial institutions' practices may change. Before acting, always confirm the latest information with Osaka City's responsible offices, Japanese professionals such as tax accountants and administrative scriveners, and your financial institutions.

As a licensed real estate broker in Osaka, we introduce properties suited to minpaku and simple lodging and advise on the path to opening. Our sister service Tsumugi Connect is an Osaka-based operator registered as a private lodging management company, supporting overseas owners with the operational know-how of a top 1% Airbnb host. English-language consultations are available — feel free to contact us via LINE.