If you’re considering purchasing a licensed Airbnb property in Japan, you’ve probably wondered:
- Can an individual take over the license?
- Can a foreigner apply?
- Does the new owner have to be a Japanese resident?
- What are the requirements?
- Can the application be rejected?
- Will recent legal or regulatory changes affect the existing license?
The short answer is reassuring.
Individuals, foreign nationals, and even non-residents can all obtain approval to transfer a hotel business license in Japan.
The detailed requirements vary slightly from one municipality to another, but in practice, the transfer approval process is generally administrative rather than discretionary. Assuming the basic legal requirements are satisfied—for example, the applicant has no disqualifying criminal history—and the business will continue to operate under essentially the same conditions as before, you can generally expect the transfer to be approved.
In fact, while we are currently handling a transfer application in Shibuya Ward, the official in charge told us that they have not rejected a transfer application within the past year and could not recall one ever being rejected in the past. While every municipality ultimately makes its own decisions, this reflects the practical reality that transfer applications are rarely treated like applications for a brand-new license.
Another question we frequently receive is whether recent legal or regulatory changes affect existing licensed properties.
Generally speaking, they do not.
As a general rule, new laws and local ordinances do not retroactively apply to licenses that have already been granted. Therefore, when a hotel business license is transferred, the new operator is generally allowed to continue operating under the legal framework that applied when the original license was issued.
So, what does the process actually involve?
Although the exact requirements differ between municipalities, the procedure itself is relatively straightforward.
In most cases, it consists of the following steps:
- Submit the required application documents in person to the local public health center.
- If the property is located near protected facilities such as schools or parks, the public health center may consult the local Board of Education. This consultation is handled entirely by the authorities, so the applicant simply waits after submitting the documents.
- Receive approval.
- Collect the new business license certificate.
Compared to obtaining a brand-new hotel business license, the transfer process is considerably simpler.
Two practical points to keep in mind
1. Operational changes may require separate notifications
If there are changes to the operation of the property—for example:
- the manager,
- emergency response personnel,
- the check-in method,
- or other operational matters,
additional notification filings may also be required.
Some municipalities allow these notifications to be submitted together with the transfer application, while others require them to be filed separately after the transfer has been approved.
It is therefore worth confirming the local procedure before preparing your application.
2. Obtain the previous operator’s complete licensing documents
This is probably the single most important practical advice we can offer.
Although the required documents differ from one municipality to another, you should always obtain the complete set of documents that was submitted when the original hotel business license was issued.
These often include:
- floor plans,
- cross-sectional drawings,
- plumbing and drainage drawings,
- electrical system drawings,
- internal dimension measurements,
- and other technical documents.
Obtaining or recreating these documents after the property is already operating can be extremely difficult.
More importantly, if even one required document is missing, many municipalities will not receive the application. The review process simply does not begin until all required documents have been submitted.
For this reason, make sure you obtain the entire bound licensing package—not just the hotel business license certificate.
How long does approval take?
The timeline depends on the municipality.
As a rough guide:
- Several weeks to one month where consultation with the Board of Education is not required.
- One to two months where such consultation is required.
The reason is fairly simple.
Many Boards of Education only respond to consultation requests once each month. If your application misses that month’s review, the consultation may not take place until the following month, inevitably extending the overall timeline.
Final thoughts
As we discussed in our previous article, municipalities across Japan are gradually tightening regulations for both Minpaku and hotel businesses, with a noticeable trend toward requiring stronger local management and operational oversight.
I expect this trend to continue.
As a result, existing licensed properties—especially those operating under earlier regulatory frameworks—are likely to become increasingly valuable over time.
This is because, unlike obtaining a brand-new license, purchasing an existing licensed property allows investors to benefit not only from an established operation, but also from the legal and regulatory framework that existed when the original license was granted.
Whether you need assistance with obtaining a hotel business license, transferring an existing license, filing amendment notifications, or managing a licensed property after purchase, Jin’s Homes provides end-to-end support for overseas investors looking to invest in Japan.
