Nationality Disclosure to Become Mandatory for Individual Real Estate Acquisition Starting in 2026

Until now, real estate registration in Japan could be completed using only the owner’s name and address. However, on December 16, the Ministry of Justice announced a major regulatory change: individuals acquiring real estate, including land and buildings, will be required to disclose their nationality.

This requirement will apply at the time of ownership transfer registration, including transactions such as sales and inheritances. The policy is intended to improve transparency around property ownership and provide a foundation for tighter oversight of real estate transactions. The new system is scheduled to take effect from sometime this year in 2026.

Importantly, this change applies to all real estate transactions, not only those involving foreign buyers, but also those involving Japanese individuals and Japanese corporations.

1. [Individuals] Mandatory Nationality Disclosure in Real Estate Registration

1-1. All Individuals, Including Japanese Nationals, Are Subject

• Japanese nationals
  Will declare “Japanese nationality.” As this can be confirmed through resident records, the additional documentation burden is expected to be minimal.
  
• Foreign nationals
  Must declare their nationality and submit proof such as a passport or other nationality-certifying documents.

1-2. Will Nationality Appear on the Public Registry?

Nationality information will not appear on publicly accessible real estate registry certificates. It will not be visible to neighbors, business partners, or other third parties. Instead, the information will be managed strictly as internal data by the Legal Affairs Bureau and used solely for government oversight, ensuring appropriate protection of personal privacy.

In addition, the Digital Agency plans to establish a government-wide database for sharing nationality information as early as fiscal year 2027. This will utilize the “Real Estate Base Registry,” which is managed by the Agency.

2. [Corporations] Closing Regulatory Gaps in Important Land Transactions

2-1. Background and Existing Issues

Under the Act on the Investigation of Important Land and Other Areas, land located within approximately one kilometer of key facilities, such as Self-Defense Force bases and nuclear power plants, is designated as subject to monitoring and regulation.

Previously:

• Individuals acquiring such land were required to disclose nationality
• Corporations, however, only had to disclose their country of incorporation and representative’s name, not the nationalities of officers

As a result, foreign investors could establish Japanese corporations to acquire land, causing transactions to appear domestic on paper while obscuring the identity of the ultimate controlling parties.

2-2. New Rule: Disclosure Required When Majority Is Foreign-National

From 2026 onward (tentative), when a corporation acquires land in designated important areas, nationality disclosure will be required if either of the following conditions applies:

• A majority of corporate officers share the same non-Japanese nationality
• A majority of voting rights are held by individuals of the same non-Japanese nationality

This means that even if a company is based in Japan, corporations that are effectively controlled by foreign capital will be required to submit detailed nationality information to the government.

2-3. Expansion to Forests and Large-Scale Land Transactions

Regulatory oversight will not be limited to areas around defense facilities. To protect Japan’s water resources and national land, the following transactions will also be monitored:

・Forest Acquisitions

Until now, ownership of Japanese forests (mountain and woodland areas) has not been systematically tracked by nationality. Going forward, individuals acquiring forest land will also be required to register their nationality.

This change aims to address concerns such as water source acquisition and to ensure the government clearly understands who owns forest land.

・Large-Scale Land Transactions

Transactions involving land exceeding a certain size—those requiring notification under the National Land Use Planning Act—will also be subject to similar requirements, including confirmation of corporate officers’ nationalities.

This is expected to apply to projects such as resort developments and mega-solar installations.

3. Summary

• From FY2026 (Reiwa 8) onward, nationality disclosure will be mandatory when filing real estate registration applications upon property acquisition
  (applies to all individuals, including Japanese nationals)
  
• Submitted nationality information will not be recorded in public registries and will be used internally by the government only, ensuring privacy protection
  
• Regulations under the Act on the Investigation of Important Land and Other Areas will be strengthened, requiring disclosure of corporate officers’ nationalities and beneficial owners
  
• Monitoring targets will expand beyond areas near defense facilities to include forests and large-scale land transactions under the National Land Use Planning Act
  
• For forest acquisitions, individual nationality registration, which was previously not fully tracked, will now be required

This policy marks a significant shift in Japan’s efforts to accurately understand who owns land in Japan at a national level. Following a public comment process, the system is expected to come into force starting sometime this year in 2026 (Reiwa 8).