Japan Tightens Rules for Foreign Investors and Property Owners

Japan has introduced two new filing rules for foreign founders and property owners, coinciding with the release of the 2026-2027 Japan Market Entry Roadmap by Pearce Inagaki Legal Advisory LLC. The first rule, effective October 1, 2026, tightened the income requirements for permanent residence, mandating that household income exceed the average income of a Japanese household of the same size. Additionally, the fee for permanent-residence permission surged from 10,000 yen to 200,000 yen, with scaled fees for residency status changes or extensions.

The second rule, taking effect October 5, 2026, amends the Real Property Registration Rules to include nationality information in the registry search-information record for new property ownership registrations. This change does not restrict foreign ownership but aims to better track foreign-held real property and support mandatory inheritance registration.

These updates follow a significant October 2025 revision that raised the minimum paid-in capital for the Business Manager visa from 5 million yen to 30 million yen, along with other stringent requirements. Despite these changes, Japan continues to attract record inward investment, reaching 61.2 trillion yen at the end of 2025, a 14.8% increase from the previous year.

Pearce Inagaki Legal Advisory LLC emphasizes that Japan is not closing its doors but rather screening for substance and long-term contribution. The firm’s 2026-2027 Japan Market Entry Roadmap and Japan Enterprise GTM Guide provide detailed guidance for foreign investors and entrepreneurs navigating these new regulations.