What is the inheritance procedure for a foreign owner's property in Japan after their death? Which country's laws apply?

Okay, this is a very common concern for many foreign friends investing in Japanese real estate. Let me break it down for you in simple terms.

What is the inheritance procedure for a foreign owner's property in Japan after their death? Which country's law applies?

This question needs to be looked at in two parts: "Which law applies?" and "What are the specific steps?". These are related but distinct concepts.

I. Key Question: Which Country's Law Applies?

Many people assume that since the person is Chinese (or another foreigner), Chinese inheritance law must apply. This is only half right.

Japanese private international law has a very important principle called the "doctrine of scission" (sounds technical but is straightforward).

It means:

Immovable property (e.g., houses, land): The law of the place where the property is located applies.
Movable property (e.g., bank deposits, stocks, cash): The law of the deceased person's home country applies.

Therefore, for your question, the answer is very clear:

For property located in Japan, regardless of the owner's nationality, Japanese inheritance law must be applied.

Example: A Chinese citizen passes away in Japan. They own an apartment in Japan, have deposits in China, and also have deposits in a Japanese bank.

The Japanese apartment: Must be inherited according to Japanese law.
The deposits in China: Inherited according to Chinese law.
The deposits in the Japanese bank: Also inherited according to Chinese law (because deposits are movable property).

Once this is clear, the subsequent procedures become much clearer.

II. What are the Specific Steps? (Using Property Inheritance as an Example)

Since Japanese law applies to the property, let's look at the specific process for inheriting a property in Japan. Assume the heirs are all overseas (e.g., in China).

The core of the entire process is transferring the property title from the deceased owner to the heir(s). This procedure is called "Ownership Transfer Registration" (所有権移転登記, Shoyūken Iten Tōki) and must be done at the Japanese Legal Affairs Bureau (法務局, Hōmukyoku).

The process can be roughly divided into the following steps:

Step 1: Gather and Prepare "Proof Documents"

This is the most time-consuming and cumbersome step. You need to prove two things to the Japanese Legal Affairs Bureau:

The original owner is indeed deceased.
You (and others) are the legal, all the rightful heirs (none can be missing).

Required documents typically include:

Documents for the Deceased (Original Owner):
- Death Certificate (or a notarized Death Certificate from your home country).
- Documents proving all family relationships from birth to death. In China, this is usually the Household Register (Hukou), Kinship Certificate, etc. This is crucial because Japan needs to confirm the scope of heirs (order and eligibility of spouse, children, parents, siblings).
Documents for All Heirs:
- Proof of Identity (e.g., passport copies).
- Proof of Address (e.g., domestic Residence Certificate or similar).
- Seal Registration Certificate (or Signature Certificate): All heirs must provide this. Since Japanese procedures often use personal seals (inkan/hanko) and foreigners don't have them, you usually need to obtain a "Signature Attestation" (公証, Kōshō) from a notary public in your home country, certifying that a signature on a document is indeed yours.

Important: All non-Japanese documents must be accompanied by Japanese translations prepared by a qualified translator.

Step 2: Identify All Legal Heirs and Draft an "Inheritance Partition Agreement"

Under Japanese Civil Law, statutory heirs have a clear order of priority. Once the documents are gathered, you can determine who is eligible to inherit.

Next, all legal heirs must reach an agreement on who will inherit the property. It can be inherited by one person or shared by several in specific proportions. Once agreed upon, a legal document called an "Inheritance Partition Agreement" (遺産分割協議書, Isan Bunkatsu Kyōgisho) must be signed.

This agreement requires the personal signature (or seal impression) of all heirs.
For heirs overseas, the "Signature Attestation" mentioned earlier is usually required to prove the signature's validity.

If there is disagreement among the heirs about the division, it becomes complicated, requiring a lawyer and potentially a lawsuit in a Japanese Family Court. Therefore, reaching a family consensus beforehand is the most efficient way.

Step 3: Engage a Japanese Judicial Scrivener

By now, you should understand that it's nearly impossible for an ordinary person living overseas to handle these procedures directly at the Japanese Legal Affairs Bureau. Language barriers, lack of legal knowledge, and incorrect document formats will lead to endless frustration.

Therefore, you must engage a Japanese professional. This person is typically:

Judicial Scrivener (司法書士, Shiho-Shoshi): This is the expert for handling real estate registration procedures like title transfers. In the vast majority of cases, you only need to hire one. They will guide you in preparing all documents, help draft the Inheritance Partition Agreement, and submit the application to the Legal Affairs Bureau on your behalf.
Lawyer (弁護士, Bengoshi): Needed only if there is a dispute among heirs requiring litigation.

Think of the Judicial Scrivener as your "legal agent" in Japan – an indispensable role in this entire process.

Step 4: Submit Application to Legal Affairs Bureau and Complete Transfer

The Judicial Scrivener will compile all your prepared materials (notarized documents, agreement, translations, etc.) and submit them to the Legal Affairs Bureau where the property is located, applying for the ownership change.

Once the Legal Affairs Bureau approves, they will update the property's "Registry" (登記簿, Tōkibo – similar to a property title database), officially changing the owner's name to the heir(s).

This process usually takes 1-2 weeks. Once completed, the Judicial Scrivener will receive a new "Registration Identification Information Notice" (登記識別情報通知書, Tōki Shikibetsu Jōhō Tsūchisho – equivalent to a new title deed), marking the completion of the inheritance procedure.

III. Summary and Friendly Reminders

Core Principle: Remember "Immovable property follows location" – Japanese property follows Japanese law.
Professionals are Essential: Do not attempt to DIY. Contact a Japanese Judicial Scrivener immediately. They are experienced, know exactly which documents are needed from which countries, and can save you immense trouble.
Document Preparation is Key: 90% of the time and effort in the inheritance process is spent gathering various notarized documents and proofs. Be patient and follow the list provided by the Judicial Scrivener meticulously.
A Will is Important: If the owner creates a valid will compliant with Japanese legal formalities (e.g., a "Notarial Will" - 公正証書遺言, Kōsei Shōsho Yuigon) during their lifetime, it can significantly simplify the inheritance process and prevent disputes among heirs. However, creating the will itself also requires professional guidance.
Don't Forget Taxes: Inheriting property may involve Japanese Inheritance Tax (相続税, Sōzokuzei). This is a more complex issue with exemptions and varying rates. The Judicial Scrivener will usually advise you to consult a Certified Tax Accountant (税理士, Zeirishi) to handle the tax filing.

I hope this explanation helps! While the process may sound complex, as long as you find a reliable Judicial Scrivener, your main task will be obtaining the necessary notarized documents in your home country. They can handle the rest in Japan for you.