After purchasing property in Japan, will it be troublesome to handle the property if I decide to leave?

Hey there, that's a really great question and a major concern for many foreigners who own property in Japan. Let me break it down for you in plain language.

In a nutshell: There is some hassle involved, but it's definitely not an "impossible" problem. The key is planning ahead and finding the right people to help.

After leaving Japan, you essentially have three options for your property: Sell it, Rent it out, or Leave it vacant temporarily. Let's look at each one.

Option 1: Selling the Property (The Cleanest Break)

This is the most straightforward approach. Many think selling while overseas must be super complicated, but services are actually quite mature now.

The Core Key: Find a reliable Real Estate Agent (不動産会社 - Fudosan Gaisha).
How does the process work?
1. Appoint an Agent: You can contact a Japanese agent via email, video call, etc., and sign a sales commission contract. They handle everything: listing, marketing, showing the property, and negotiating with buyers.
2. Contract Signing & Transfer: This is the part people worry about most: "How do I sign if I'm not there?" Don't worry, there are two main methods:
  - Judicial Scrivener Proxy (Recommended): You sign a Power of Attorney (委任状 - Ininjo), fully authorizing a Japanese Judicial Scrivener (similar to a legal clerk/notary) to represent you. They handle all legal paperwork for signing and transfer. You just need to get some identity verification documents (like a "Certificate of Residence Status" - 在留証明書 - Zairyu Shomeisho) processed at a Japanese embassy/consulate in your country and mail them over.
  - Return to Japan: If you prefer or have other reasons to visit Japan, you can fly back to sign in person.
3. Receiving Payment: After deducting agent fees, taxes, etc., the sale proceeds can be wired directly to your overseas bank account.
Special Note: Tax Issues
- If you make a profit on the sale, you need to pay Capital Gains Tax (譲渡所得税 - Joto Shotokuzei).
- As a non-resident, the buyer is legally required to withhold 10.21% of the sale price when paying you and submit it directly to the tax office. This is an advance payment of your tax.
- The following year, you (or your tax agent - see below) must file a tax return (確定申告 - Kakutei Shinkoku) to settle the tax. If the withheld amount exceeds your actual tax liability, the tax office will refund you.

Summary: For selling, once you find a trustworthy agent and judicial scrivener, you can be a largely "hands-off owner," mainly providing documents and receiving funds.

Option 2: Renting Out the Property (Turning it into Ongoing Income)

If you believe the Japanese property market has future potential or you want a fallback option, renting is a good choice.

The Core Key: You absolutely must find a Property Management Company (管理会社 - Kanri Gaisha).
How does the process work?
1. Appoint a Management Company: Sign a contract with them. They will handle:
  - Finding tenants and conducting background checks.
  - Collecting rent and transferring the money (minus their fee) to you regularly.
  - Dealing with tenant issues (e.g., broken lights, clogged pipes).
  - Inspecting the property and handling security deposit settlements when tenants move out.
2. What do you need to do? Basically nothing. The management company acts as your "property manager" in Japan, handling everything. You just need to check monthly reports and bank statements. Management fees are typically around 5% of the rent.
Special Note: Tax Issues
- Rental income is Japanese-sourced income, so you must pay tax to the Japanese government.
- Because you are non-resident, you are legally required to appoint a "Tax Agent" (納税管理人 - Nozei Kanrinin). This person can be your management company, an accountant, or a trusted friend in Japan. Their role is to receive tax notices, file returns, and pay taxes on your behalf. This is mandatory by law and crucial.

Summary: To be an overseas landlord, a property management company and a tax agent are your essential partners. Get these set up, and you can collect rent from overseas with peace of mind.

Option 3: Leaving it Vacant Temporarily (Short-term or Financially Secure Option)

If you're leaving for a short period or haven't decided what to do yet, you can leave it empty for a while.

What you need to do:
- Continue Paying Fees: Even if vacant, you must still pay Management Fees (管理費 - Kanrihi), Repair Reserve Fund contributions (修繕積立金 - Shūzen Tsumitatekin) (for condos), and the annual Fixed Asset Tax (固定資産税 - Kotei Shisanzei). Set up automatic payments or arrange for someone to pay them.
- Property Maintenance: Long-term vacancy can lead to problems (dampness, mold, plumbing issues). It's best to also hire a management company for "vacant property inspection services." They will periodically visit to air out the property, check its condition, and collect mail to prevent deterioration.
Downside: This option only involves expenses, no income, and the property condition may worsen. It's generally not recommended for the long term.

To Summarize

So, back to your question: "Will handling this property be troublesome?"

It's "not troublesome" because there are mature, professional services (real estate agents, judicial scriveners, property managers, tax agents) to handle every step. You might not even need to set foot in Japan.
It's "troublesome" because you need to invest effort in finding these "reliable partners" and deal with some cross-border paperwork and tax filings.

Final Advice:

Before you decide to leave Japan, start preparing. Whether selling or renting, contact agents or management companies in advance. They'll tell you what documents you need and outline the process. Setting up these relationships beforehand will make everything run smoothly when you actually leave.

Don't stress too much. This is standard procedure for foreigners with property in Japan – you're not the first, and you won't be the last.