Japan’s Important Land Act: Impact on Foreign Buyers and Notification

The Important Land Act (重要土地等調査法) allows the government to survey how land and buildings around defense-related and other key facilities and on remote border islands are used, and to restrict uses that impair the functions of those facilities. It does not prohibit the purchase of land itself on the grounds that the buyer is a foreign individual or company. However, a sale of land or buildings of 200 m² or more in a special monitored zone requires notification before the contract is signed.

What is the Important Land Act?

Its formal title is the Act on the Review and Regulation of the Use of Real Estate Surrounding Important Facilities and on Remote Territorial Islands. It was enacted in June 2021 and took full effect on September 20, 2022. It is administered by the Cabinet Office.

Its purpose is to prevent land and buildings around facilities important to national security and on remote border islands from being used to obstruct the functions of those facilities. The government designates zones and surveys the owners and use of land and buildings within them.

The “important facilities” covered fall into three categories.

• Defense-related facilities (such as those of the Self-Defense Forces and US forces in Japan)
• Japan Coast Guard facilities
• Critical infrastructure facilities (facilities specified by Cabinet Order, such as nuclear facilities)

Zones are designated in stages by public notice of the Prime Minister. The latest designated zones and maps are published on the Cabinet Office website.

What is regulated: “function-impairing activities”

The law regulates not land ownership itself but uses that obstruct the functions of facilities. The government’s basic policy gives examples such as installing structures that interfere with aircraft takeoffs and landings or with radar operations. The government has explained that the law is not intended to generally restrict ordinary uses within the zones, such as living there or running a shop or office.

Monitored zones vs special monitored zones

Zones are designated within roughly 1,000 m around important facilities and on remote border islands. Areas around facilities whose functions are particularly important, among others, become special monitored zones, which are subject to stricter regulation.

No notification is required when buying land in a monitored zone. However, as in special monitored zones, property there is subject to surveys and to recommendations and orders.

Prior notification requirements in special monitored zones

In a special monitored zone, the parties to a contract are obliged to file a notification if all three of the following apply.

1. The land or building is within a special monitored zone
2. The area is 200 m² or more
3. A contract, such as a sale, is concluded that transfers or creates ownership or other rights

Notification is in principle filed with the Prime Minister (through the Cabinet Office) before the contract is concluded. The main items to be notified are as follows.

• Names, addresses and nationalities, etc. of the parties
• Location and area of the land or building
• Intended use after the contract

This notification is not an application for a permit. However, its content forms the basis on which the government monitors how property is used. Before buying, work out your intended use so that you can describe it specifically.

Practical points on notification

Notification is a procedure that involves both seller and buyer. Decide early, including with the brokerage, who will file the notification and when. If the contract date is fixed first, the notification may not be filed in time. For buyers based overseas, also allow for the time needed to prepare and sign documents.

Check whether a property is within a zone using the notices and zone maps published by the Cabinet Office. If you are unsure, you can also contact the Cabinet Office’s call center for the Important Land Act (0570-001-125, weekdays 9:30 to 17:30).

Surveys, recommendations, orders and penalties

The government investigates the owners and use of land and buildings within the zones using public records such as the real estate registry and information from relevant agencies. Where necessary, it may also require owners and others to submit reports or materials.

If a use that impairs the functions of a facility (a function-impairing activity) is identified, a recommendation to stop it or take similar action is issued first. If the recommendation is not followed, an order is issued, and violating the order is subject to criminal penalties. The main penalties are as follows.

If an officer or employee of a company commits a violation, the company is also fined (dual liability provision). Note that the term “imprisonment with work” (懲役) in the original text of the Act was replaced by “imprisonment” (拘禁刑) from June 1, 2025 following an amendment to the Penal Code.

Checkpoints for foreign individuals and companies buying property

The Important Land Act applies to everyone who owns land or buildings within the zones, regardless of nationality. When a foreign individual or company buys property, other notifications or reports may apply in addition to this law. Check the following points before signing a contract.

• Whether the property is within a monitored zone or a special monitored zone
• If it is 200 m² or more in a special monitored zone, whether the schedule allows the contract to be signed after notification has been filed
• If a non-resident is acquiring the property, whether a report under the Foreign Exchange and Foreign Trade Act (FEFTA) is required
• Depending on the size of the transaction, whether notification under the National Land Use Planning Act is required
• Whether there are any issues with your plans for use after acquisition (building use, installation of structures, etc.)

More zones may be designated in future. If a property becomes part of a zone after you buy it, it is subject to surveys and to recommendations and orders from that point on. For property you plan to hold for a long time, check the designation status not only at the time of purchase but throughout ownership.

The overall purchase process, including FEFTA reporting, is explained in Buying property in Japan as a foreigner: process and pitfalls. If you acquire property through an investment in a Japanese company, also check FEFTA procedures for inward direct investment. For the taxes due on purchase, see Taxes when buying property.

Reform moves in 2026

Discussions on revising the rules for land acquisition by foreign nationals have advanced during 2026. The main developments as of October 2026 are as follows.

• The Cabinet Secretariat’s Study Group on Rules for Land Acquisition by Foreign Nationals compiled its recommendations in October 2026. These include introducing a “permit system” requiring government permission at the acquisition stage for land around facilities important to national security and on remote border islands. According to media reports, the proposal would require permission regardless of whether the acquirer is a foreign or Japanese national, and acquisitions by persons such as those under the strong influence of a foreign government would in principle not be permitted.
• At a press conference on October 6, 2026, the minister in charge indicated that, based on the recommendations, the government intends to submit a bill amending the Important Land Act to the Diet promptly.
• The Ministry of Land, Infrastructure, Transport and Tourism’s Expert Panel on Land Acquisition and Use also compiled recommendations in August 2026 on revising the National Land Use Planning Act. Their pillars are continuous monitoring of land use and guidance and supervision across both the transaction and use stages. It has been reported that they also include lowering the area threshold above which notification of transactions is required.

If a permit system is introduced, the time and documents needed before a contract may change. How to identify the persons who effectively control a company acquiring land is also being discussed. It has been reported that in October 2026 the Cabinet approved a new bill requiring companies other than listed companies to file information on their beneficial owners.

The content of the amendments and their effective dates had not been finalized at the time of writing. If you are considering a purchase, confirm the rules that will apply at the time of the contract before proceeding.

The Important Land Act: summary

The Important Land Act does not impose a blanket ban on land acquisition based on nationality. A sale of 200 m² or more in a special monitored zone requires notification before the contract. In any zone, uses that obstruct the functions of facilities are subject to recommendations and orders. Reforms including a permit system at the acquisition stage are under discussion in 2026, so future amendments warrant close attention.

Together with partner judicial scriveners, administrative scriveners and other professionals, TIMOA helps you check whether a property falls within a zone, plan a purchase schedule that includes notification, and prepare FEFTA reports and registration. For details, see our Real Estate services.