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Want to Buy a Vacation Home in Japan and Use It as a Guesthouse? Here’s What You Need to Know

Japan’s beautiful countryside, coastal towns, and historic cities have become popular not only with tourists — but also with international buyers looking to invest in vacation homes. Some people simply want a peaceful place to escape to. Others are interested in renting out their property as a short-term guesthouse (minpaku) when they’re not using it.

However, turning your vacation home into a legal and profitable guesthouse requires more than just purchasing the property. You’ll need to consider local regulations, licensing procedures, and — in some cases — immigration requirements.

At SG Administrative Legal Services, we specialize in helping foreign clients:

  • Conduct feasibility assessments to check if a property can be used legally as a minpaku
  • Apply for the appropriate lodging business licenses or minpaku registration
  • Coordinate with local authorities and management companies
  • Support visa applications such as the Business Manager Visa, if you intend to manage the operation yourself

Common Scenarios We See

  • You want to buy a vacation home in Japan and stay there part of the year, while renting it out the rest of the time
  • You’re considering a business investment in a guesthouse or villa-style minpaku
  • You already own property in Japan and want to legally operate a minpaku
  • You’re wondering what visa options are available if you want to manage the property yourself

We help clients in all of these cases — from real estate and business licensing to immigration planning.

Legal and Administrative Points to Consider

1. Do You Need a License?

Yes — if you plan to rent out your property to guests (even occasionally), Japan requires some form of legal permission. The main options are:

  • Minpaku (Private Lodging) Notification under the Housing Accommodation Business Act
    → Often limited to 180 days per year, depending on the area
  • Hotel/Inn Business License
    → Required for unrestricted daily rentals, especially if not owner-occupied
  • Special Zone Minpaku (available in select municipalities only)

Each option comes with different requirements for structural layout, fire safety, registration documents, and ongoing reporting duties. Before purchasing a property, it’s essential to investigate whether lodging use is allowed under zoning rules and building laws.

This is why we offer a Minpaku Feasibility Check Service to verify whether your target property meets the requirements — before you buy.

2. Can Foreigners Own and Operate Minpaku Properties?

Yes — foreign nationals can legally own real estate and operate minpaku in Japan. However, to run the business personally, you’ll need:

  • A valid visa status (e.g. Business Manager Visa)
  • Proper registration or licensing
  • A management system in place if you won’t be residing full-time in Japan

If you plan to live overseas, you’ll need a licensed local management company to handle guest communication, cleaning, reporting, and compliance.

3. What About Visa Options?

If you’re planning to actively manage the property, hire staff, or expand into a hospitality business, you may be eligible for a:

  • Business Manager Visa
    Requires a proper business plan, investment (typically 5 million yen or more), and a business office or property setup

If you’re only using the property privately or letting a management company operate it, a work visa is usually not applicable. In this case, your stay in Japan may be limited to short-term visitor periods, unless you hold another qualifying long-term status.

How We Can Help

At SG Administrative Legal Services, we offer end-to-end support for your guesthouse investment in Japan:

  • Minpaku feasibility checks before purchase
  • Lodging business license or minpaku registration application support
  • Liaison with fire departments, health offices, and city halls
  • Introduction to local management companies
  • Visa application support (e.g. Business Manager Visa) if you plan to run the business directly
  • Ongoing support for compliance, renewals, and expansions

Interested in Starting Your Guesthouse Dream?

Whether you want to invest in Japan’s hospitality industry or simply make the most of your vacation property, we’ll help you understand the legal steps, minimize the risks, and support your plan from start to finish.

→ Contact us today for a consultation.


Author: Lin(リン)

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