Kumamoto Land Price+3.5% YoY ↑ Kumamoto Net Migration+3,840 people Latest Published Land Price2025.03
2026.05.20 · 09:24 JST · Kumamoto City
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Frequently Asked Questions.

Below is a curated set of questions we hear most often from clients and prospects, grouped into Manufacturer Setup and Real Estate Investment. The content is general guidance and does not constitute legal, tax, or investment advice; case-specific positions are confirmed in writing during consultation.

01.Setup ProcessHow quickly can a foreign company establish a branch in Kumamoto? Is a residence visa required?+

From the decision to set up through completing registration, opening a bank account, and starting operations, the typical timeline is roughly 3 – 6 months. Within that:

  • Entity registration: articles notarization plus incorporation registration, around 3 – 4 weeks
  • Bank account opening: from application to issuance, 4 – 12 weeks depending on the bank
  • Tax office notification: within 1 month after registration is complete
  • Status of residence application: where staff will be posted, around 2 – 4 months

Whether a residence visa is needed depends on whether you will have permanent staff in Japan. If the entity operates purely as a Japanese subsidiary with only short-term business travel from the home country, no residence visa is required. Where a resident representative is needed, the Business Manager (経営・管理) or Engineer / Specialist in Humanities / International Services (技術・人文知識・国際業務) visa is typically used.

— Visa decisions are made at the discretion of the Immigration Services Agency. We support document preparation and filing only.
02.SubsidiesWhat investment subsidies are available in Kumamoto Prefecture and Kikuyo Town? Can foreign companies apply?+

Kumamoto Prefecture, Kikuyo Town, Koshi City and other municipalities each offer inbound investment subsidies, and most are open to foreign-capital companies that meet the criteria. Frequently used schemes include:

  • Kumamoto Prefecture Corporate Location Promotion Subsidy (investment ≥ JPY 100 million)
  • Kikuyo Town Industrial Location Ordinance (property tax exemption for up to 5 years)
  • METI semiconductor-related funds (strategic industry, capex support)
  • MHLW employment subsidies (for newly hiring local residents)

Eligibility criteria and ceilings vary substantially. YAOKI can help assess applicable programs and prepare filings, but the final award decision rests with the granting authority. For the full program landscape, see the Why Kumamoto · Investment & Subsidies section.

03.Bank AccountAfter the Japanese entity is registered, how long does bank account opening take, and what documents are required for foreign capital?+

Timelines vary widely by bank type: city banks (e.g. MUFG, Mizuho) typically take 8 – 12 weeks; regional banks (e.g. Higo Bank) typically take 4 – 8 weeks; online banks are faster but offer narrower functionality.

Foreign-capital applicants generally need: certificate of registered matters, articles of incorporation, seal registration certificate, personal ID of the representative, business plan, office lease, and tax office filing receipt. Most banks require an in-person interview and prefer entities with a credible operating plan in place.

— Account approval is the bank's decision. We support document preparation and bank introductions but cannot guarantee outcomes.
04.Land & FactoriesWhat is the current market for industrial land and factory space in Kumamoto, and how is supply?+

Kikuyo Town, Koshi City and Ozu Town form the core of the current supply-chain cluster, where industrial land prices have risen sharply and high-quality stock is limited. New-build factories generally need to be reserved in advance, while quality second-hand facilities require fast decisions.

Kumamoto City East / South / North wards and Kamimashiki District still offer relatively affordable industrial parcels, though commuting and logistics distance need to be weighed. YAOKI can prepare comparative shortlists by district and arrange meetings with local agents and licensed realtors.

05.TalentHow easy is it to recruit locally in Kumamoto, and how do wages compare with Taiwan?+

Kumamoto's unemployment rate has long been below the national average; since TSMC's arrival, the technical talent market has tightened markedly. Hiring for general administrative and shop-floor roles remains feasible, but compensation must be competitive.

In 2025 the average monthly wage in Kumamoto Prefecture stands at roughly JPY 280,000 (inclusive of bonuses and allowances on an annualized basis), with technical roles typically above that benchmark. YAOKI can introduce trusted recruitment agencies and dispatch firms for early-stage staffing.

06.Site VisitFor a first visit to Kumamoto, what itinerary do you recommend, and how many days are needed?+

For first-time evaluating manufacturers, YAOKI recommends a customized 3 – 5 day site-visit itinerary. A typical schedule:

  • Day 1: meetings at our Kumamoto City office plus a walking tour of the city center
  • Day 2: on-site visits to Kikuyo Town / Koshi City industrial clusters and the TSMC site perimeter
  • Day 3: in-person meetings with local real estate agents, administrative scriveners, and tax accountants
  • Day 4 – 5: optional extension covering a second district, bank introductions, and government investment liaison

Every itinerary includes pre-trip topic briefs, on-site notes, and a follow-up site-visit report. See Services · Market Research for more.

07.FeesHow are fees structured for manufacturer setup engagements?+

We use a combination of three models: one-off engagement, project basis, and annual retainer.

  • One-off engagement: a single deliverable (one site visit or one entity registration) priced per item
  • Project basis: end-to-end from assessment to landing, with a fixed scope paid in milestones
  • Annual retainer: ongoing post-landing support billed yearly

Quotes depend on case complexity and timeline; we provide a written proposal after the initial consultation.

01.RegulationCan foreigners purchase real estate in Japan? Are there any special regulatory restrictions?+

As a general principle, there are no special restrictions on foreigners purchasing real estate in Japan — Japanese nationality, a residence visa, and a Japanese spouse are not required. Title registration is identical to that for Japanese nationals.

The main caveats are: (1) additional review applies near certain Self-Defense Force facilities and border islands (not relevant to typical residential or commercial properties); and (2) if held via a corporate vehicle, the entity must be registered in Japan.

02.FinancingWithout a residence visa, can I obtain a loan from a Japanese bank? What are the terms and rates?+

Securing a Japanese mortgage as a foreign non-resident is difficult but not impossible:

  • Lending is mostly available through a handful of banks that specialize in non-resident foreign lending (e.g. SBJ Bank, Tokyo Star Bank)
  • Down payments are typically higher (30% – 50%)
  • Interest rates run roughly 2.5% – 4.5% (2025 levels, well above the 0.5% – 1.5% available to Japanese nationals)
  • Most products are short-term fixed, with reassessment every 5 – 10 years

Conditions ease substantially for applicants who already hold a residence visa, have stable income, and live in Japan. YAOKI assists with document preparation and bank introductions.

— Credit decisions are made by the bank. We support document preparation but do not guarantee outcomes.
03.TaxHow are property tax, rental income tax, and capital gains on disposal handled after purchase?+

The main tax items are:

  • Property tax (固定資産税): assessed value × 1.4% annually, payable in four installments in April, July, December, and February
  • City planning tax: assessed value × 0.3% (within urbanization promotion areas)
  • Rental income tax: net rental income, taxed under progressive personal income tax rates
  • Capital gains tax: on disposal, 39.63% if held under 5 years, 20.315% if held 5 years or more
  • Withholding for non-residents: rent paid by a Japanese resident may be subject to 20.42% withholding tax

Effective rates and applicable conditions vary by case. YAOKI works alongside partner tax accountant firms to coordinate filings, but does not act as a tax accountant or sign tax filings.

04.ManagementIf I do not live in Japan, how are tenant sourcing, repairs, and lease termination handled?+

The standard approach is to appoint a rental property management company (YAOKI is one option) to handle day-to-day operations:

  • Tenant sourcing: listing with local agents
  • Contract administration: lease agreement, deposit, key money, and guarantor arrangements
  • Monthly collection: rent collection and monthly statements
  • Repairs: response to utilities, leaks, and equipment failures
  • Move-out settlement: restoration, deposit reconciliation, and handover to the next tenant

Management fees typically run 5 – 8% of monthly rent plus actual repair costs.

05.Asset ClassWhich real estate categories in Kumamoto currently offer the clearest investment thesis?+

Based on current market observation, three categories present a relatively clear thesis (not investment advice):

  • Whole studio buildings in Kikuyo Town / Koshi City: rental demand supported by supply-chain technical staff, with stable occupancy
  • Whole apartment buildings in Kumamoto City Chuo Ward: commercial and residential demand spillover driving steady price appreciation
  • Licensed minpaku properties in Aso / Kurokawa: tourism recovery combined with rising license barriers, supporting a premium

Entry-price ranges, ROI modeling, and exit conditions for each category are discussed during consultation.

06.FeesHow are fees structured for real estate investment advisory?+

Property transactions themselves are governed by Japanese law, under which brokerage fees are collected by the licensed realtor firm (typically 3% of the transaction price + JPY 60,000 + consumption tax). YAOKI acts as the bridge, with service fees structured as follows:

  • Initial consultation: complimentary
  • Market research trip: custom quote (transport, accommodation, and interpretation included, not billed separately)
  • Rental management: 5 – 8% of monthly rent
  • Annual retainer: billed yearly, scaled to portfolio size
01.FirmWhat kind of firm is YAOKI, and how is it different from a typical real estate brokerage?+

Yaoki International Consulting is a cross-border business consultancy; this site focuses on our Kumamoto real estate and manufacturer-setup practice. We are not a Japanese licensed realtor firm — property transactions are led by partner licensed realtors; YAOKI handles cross-border coordination, administrative filings, and long-term holding support.

What sets us apart from a typical broker is that YAOKI handles real estate, entity setup, visas, taxation, and ongoing support together — a single point of contact across the entire lifecycle.

02.LanguageCan consultations be conducted in Chinese? Are Chinese-language contracts available?+

Consultations can be conducted in Traditional Chinese, English, or Japanese. Binding contracts are issued in Japanese as the legally effective version, with a Chinese or English summary provided for reference. Important matter disclosures can be delivered online if you are not in Japan.

03.RegionDoes YAOKI take on cases outside Kumamoto?+

Our primary service area is Kumamoto Prefecture, and select cases can extend across Kyushu (Fukuoka, Nagasaki, Saga, Oita, and others). We do not currently take on Honshu cases, to maintain service quality.

04.NDAAre all consultations covered by an NDA?+

Initial complimentary consultations can be covered by an NDA on request and tailored to your needs. An NDA and service agreement are signed before any engagement begins. Client information is never used for marketing or shared with third parties.

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