A Subsidy Application Guide for Chinese Real Estate Agencies in Japan

Types and Amounts of Real Estate Subsidies

Japan's subsidies for real estate–related enterprises (especially SMEs and startups) fall mainly into several major categories. Understanding these categories is essential for choosing the subsidy plan best suited to you.

Takken Business Grant (Real Estate Transaction Business Grant)

This is the most direct subsidy program, most applicable to real estate agencies. The Takken Business Grant is administered by prefecture-level Chambers of Commerce or SME Support Centers, and is used to support newcomers who obtain a Takken business license (a license for the real estate transaction business).

The grant amount is typically 500,000 yen to 2 million yen, depending on the following factors:

• Location (major cities such as Tokyo and Osaka may have higher amounts)
• Company size (number of employees)
• Startup type (newly established or expanding)
• The specific content of equipment investment

For example, in 2024 the average Takken Business Grant in Tokyo was around 1.2 million yen, while a regional city such as Aomori Prefecture might offer 600,000 yen. These funds can be used for: purchasing real estate management system software, office furniture, IT equipment, employee training costs, and more.

SME Startup Subsidy

This is a general-purpose subsidy for all SMEs, and it applies equally to real estate agencies. Led by the Small and Medium Enterprise Agency, this program has several application windows each year, with grant amounts of 1 million yen to 10 million yen.

If a Chinese real estate agency plans to expand to multiple branch offices within 2-3 years, or needs to develop a proprietary property database system, this type of subsidy has a clear advantage in amount. The average subsidy rate is two-thirds of the eligible expenses.

Regional Revitalization Subsidy

Aimed specifically at regional revitalization projects, if you plan to establish a real estate agency in a non-metropolitan area (outside the Tokyo, Osaka, and Nagoya spheres), or want to build a local Chinese-community real estate trading platform, this type of subsidy can reach 2 million to 5 million yen. Many regional cities, in order to attract new industries and talent, are relatively lenient in reviewing these subsidies.

Prefecture-Specific Subsidies

In addition to national-level subsidies, each prefecture and municipality also has specific subsidies targeting industries such as real estate, tourism, and foreign trade. For example:

• Tokyo: Real Estate DX Promotion Subsidy (for digitalization)
• Osaka Prefecture: Inbound Response Subsidy (for accommodating foreign visitors)
• Fukuoka City: Startup Support Subsidy (startup support)

Specific Conditions for Applying for the Takken Business Grant

To successfully apply for a real estate subsidy, you must first meet the basic eligibility conditions. These conditions may seem strict, but for Chinese business owners who operate in a compliant manner, they are usually attainable.

Corporate Eligibility Requirements

1. Corporate or sole proprietor status: You must be a formally registered Japanese corporation (either a godo kaisha or a kabushiki kaisha) or a sole proprietor residing in Japan. Chinese business owners holding a long-term residence visa (Highly Skilled Professional, Business Manager, etc.) fully qualify.

2. Takken business license under application or already obtained: This is a hard requirement. Before applying for the subsidy, you need to apply to the prefectural governor for a Takken business license. The license application requires meeting the following conditions:

   • A dedicated business office (an independent office with a minimum floor area of 10 m²)
   • Assignment of a Takken transaction specialist (an employee who has obtained the Takken specialist qualification; the company needs at least 1 initially)
   • Payment of a business deposit or joining a guarantee association (typically 10 million yen)

3. Time since the applying company's establishment: Most subsidies require the company to have been established no more than 5 years ago (Takken Business Grant) or 3 years ago (Startup Subsidy). If your Chinese real estate company has just been established or is planned, you fully qualify.

Applicant Eligibility Requirements

• Must be the corporate representative or a major shareholder
• Holders of the Takken transaction specialist qualification are given preference (in practice, holding this qualification significantly increases the approval rate)
• No record of serious labor-law violations or tax violations
• No criminal record (in Japan or in the home country)

Key reminder: If the applicant is a foreigner, they need to submit identity documents (residence card), tax payment certificates, and proof of address in Japan. Chinese business owners need to have ready a passport, residence card, and a certificate of residence issued by the ward office.

Corporate Financial Requirements

At the time of application, you need to submit financial statements for the past 1-2 years (if available). Startups may be exempt from this. Key indicators include:

• The tax return for the previous fiscal year or the current period
• Proof of bank balance (generally requiring at least 1 million yen or more in operating funds)
• A revenue-and-expenditure projection in the business plan

The Real Estate Subsidy Application Process and Required Documents

Understanding the application process helps you proceed in an orderly manner and avoid common delays. The entire process typically takes 3-6 months.

Step 1: Information Gathering and Preparation Phase (Months 1-2)

1. Confirm the subsidy window: Based on the prefecture where your company is registered, go to that prefecture's Chamber of Commerce or SME Support Center website to confirm that year's application period. Most national-level subsidies have application windows in January-March and July-September.

2. Attend an information session: Nearly all subsidy programs hold free information sessions. We strongly recommend attending in person (or participating online), because staff will answer your specific questions. Many information sessions offer English or Chinese interpretation.

3. Prepare basic documents:

   • Personal identity documents (residence card, passport)
   • A copy of the corporate registration (issued by the Legal Affairs Bureau)
   • Financial statements and tax returns for the most recent 2 periods (for existing companies)
   • Documents showing the intent to apply for a Takken business license (license application plan)

Step 2: Determining Eligible Expenses (Months 2-3)

The subsidy can only be used for specific "eligible expenses"—not all investments can be claimed. For Chinese real estate agencies in Japan, common eligible expenses include:

| Expense Item | Eligible | Not Eligible | |---------|--------|---------| | Real estate management software | ○ | × | | Takken specialist course tuition | ○ | × | | Office fixtures (desks, chairs, bookshelves) | ○ | × | | Computers/servers | ○ | × | | Business deposit | × | ○ | | Investment in an existing company | × | ○ | | Purchase of land/buildings | △ | ○ (including renovation) | | Personnel costs | △ | ○ (instructor fees are ○) |

Suppose you plan to invest 2 million yen to establish a real estate agency for Chinese clients, with the following budget:

• Takken specialist qualification course: 200,000 yen (eligible)
• Real estate management system development: 800,000 yen (eligible)
• Office furniture/IT equipment: 600,000 yen (eligible)
• Business deposit: 10 million yen (not eligible)
• Initial advertising costs: 400,000 yen (eligible)

In this case, the total eligible expenses are 2 million yen. If the subsidy rate is two-thirds, you could receive a subsidy of about 1.33 million yen.

Step 3: Preparing the Application Documents (Months 3-4)

This is the most crucial and most time-consuming phase. The main documents include:

1. Business Plan

This document is the most critical and must demonstrate clear business logic. The content should include:

• Market analysis: The market size for home purchasing and rental among Chinese communities in Japan; competitor analysis; why you have chosen Chinese communities in Japan as your main customer base
• Differentiation strategy: How does your agency differ from local Japanese companies? For example: providing Chinese-language services, understanding the needs of Chinese homebuyers, familiarity with international transfer procedures, etc.
• Financial projections: A 3-year projection of sales, expenses, and profit. For example, projecting 8 transactions closed in the first year, with an average commission of 1.5 million yen per transaction (this kind of specific figure is essential)
• Staffing plan: Initial staffing of 1 Takken specialist and 1 administrative staff member → adding 1 sales staff member in year 2, etc.

2. Financing Plan

State clearly:

• The subsidy amount applied for (e.g., 1.2 million yen)
• Own funds (e.g., a 2 million yen bank loan + 1 million yen of own capital)
• A breakdown of the total investment amount

3. Résumé and Pledge

The résumé of the applicant (corporate representative), a pledge, and a statement confirming the absence of conflicts of interest.

Step 4: Submitting the Application (Months 4-5)

• Where to submit: the prefectural Chamber of Commerce, an SME Support Center, or a designated financial institution
• How to submit: by mail, in person at a window, or via online application (depending on the municipality)
• Attached documents: the full set of business plan documents mentioned above, identity documents, a copy of the corporate registration, etc.

Step 5: Review and Adoption (Months 5-6)

• Initial review: a clerical check for deficiencies (about 1 week)
• Substantive review: an evaluation of the business plan by experts (2-4 weeks)
• Interview review: the subsidy secretariat meets with the applicant to confirm the plan's feasibility (once, about 30 minutes)
• Adoption announcement: notification of the review results (typically 2-3 months after submission)

After the adoption decision, you must separately submit a completion report on obtaining the Takken business license and proof of expenditure (receipts, etc.).

Key Points for Chinese Real Estate Agencies Applying for Subsidies

For Chinese real estate companies, there are particular points to note in order to succeed in a subsidy application.

Strengthen the "Foreign Perspective" Differentiation Appeal

Clearly demonstrating your competitive advantage over ordinary Japanese real estate agencies increases the adoption rate. In your application, emphasize the following:

1. Language capability: Customer service in Chinese (both simplified and traditional characters) and English. Even major Japanese real estate chains have limited capability in this area.

2. Cross-border transaction experience: Knowledge of the mindset and legal points of concern for buyers from mainland China, Taiwan, and Hong Kong. For example:

   • Handling the "parent-child loans" that Chinese homebuyers face
   • International handling of gift tax
   • Managing exchange-rate risk associated with overseas remittances

3. Network assets: Your existing relationships within the Chinese community and with Chinese companies in Japan. This is a strength for acquiring new customers.

Leveraging Market-Size Data

Incorporating persuasive data into your application can convince the review committee:

• Chinese population in Japan: approximately 1.6 million (2023 statistics), with an annual growth rate of 3-5%
• Home-buying intent: about 35% of Chinese in Japan are considering a real estate investment within the next 3 years (according to surveys)
• Market size: the real estate transaction market for Chinese clients is a potential market exceeding 10 billion yen annually
• Competitive landscape: there are fewer than 100 real estate agencies specializing in Chinese clients nationwide (still insufficient)

Such data allows you to persuasively explain why this business is needed and why now.

Clearly State the Takken Business Acquisition Plan

The subsidy application and obtaining the Takken business license are closely related. At the time of application, clearly state that the license application is already underway, or the planned timing of the application.

| Stage | Timing | Procedure | |-----|-----------|--------| | Apply for subsidy | Months 1-2 | Submit business plan | | Apply for Takken business license | Month 2 | Apply to the prefectural governor | | Adoption decision | Month 5 | Notification from the subsidy secretariat | | Obtain Takken business license | Months 5-6 | License issued by the governor | | Expenditure of eligible expenses | Months 6-10 | Software purchase, renovation, etc. | | Performance report | Months 10-12 | Submit receipts and performance report |

Since the Takken business license is a prerequisite for starting the business, showing a plan to advance the subsidy application in parallel demonstrates a high degree of feasibility.

Frequently Asked Questions (FAQ)

Q1: I am Chinese and hold a Business Manager visa. Can I apply for a real estate subsidy?

A: Absolutely. Holders of a Business Manager visa are permitted to run a business in Japan and meet the eligibility requirements for a subsidy application. The necessary conditions are: (1) being within the valid period of your residence card, (2) a track record of 3 or more years of residence in Japan (not required for newcomers), and (3) a clean tax payment record in Japan. Many Chinese business owners have already obtained real estate subsidies, and review agencies are accustomed to foreign applicants. That said, having identity documents (passport + residence card), a Japanese translation of the application documents, and a letter of recommendation from a Japanese lawyer or accountant can make the review go more smoothly.

Q2: Are there any costs involved in applying for a subsidy? And if the application fails, is there an obligation to repay?

A: The application itself involves no cost at all. Applying at a Chamber of Commerce or Support Center is free. However, if you commission a professional (accountant, Gyoseishoshi) to prepare the application documents, a fee of around 200,000-500,000 yen will arise as their compensation. If the application fails, the subsidy is not paid out, but there is also no obligation to repay (since you never received it in the first place). One point to note, however: if after adoption you do not spend the eligible expenses and cannot submit a performance report within the deadline, an obligation arises to return part or all of the subsidy already received. For example, if you received a 1.2 million yen subsidy but were only able to spend 60% of the planned eligible expenses, you would need to return the difference of 480,000 yen.

Q3: After receiving the subsidy, if I want to change my business direction (e.g., I originally planned a real estate agency but want to specialize in rental management), what happens?

A: Minor changes (e.g., changing the planned software from Company A to Company B, reducing the business scale to 90%, etc.) are fine as long as you notify the subsidy secretariat in advance and obtain approval. However, a fundamental transformation of the business (changing from real estate brokerage to real estate appraisal) is not permitted, and you may be asked to return the subsidy. Because the subsidy is granted based on the business plan at the time of application, a significant deviation from that plan constitutes a breach of contract. As a countermeasure, it is effective to describe the business plan flexibly at the time of application (e.g., defining it broadly as "real estate services for Chinese clients in general"), or to clearly state a two-stage business development plan.

Q4: Can I apply for and receive multiple subsidies at the same time? For example, both the Takken Business Grant and the Startup Subsidy?

A: In principle, receiving multiple subsidies for the same eligible expense is prohibited. For example, you cannot receive 1 million yen from the Takken Business Grant and 1 million yen from the Startup Subsidy for the same 1.5 million yen software purchase. However, applying for subsidies for different expenses at the same time is possible. A concrete example: if you establish two branch offices, you could apply for the Takken Business Grant with Office A's expenses (600,000 yen) and the Startup Subsidy with Office B's expenses (1 million yen). In this case, it is essential to notify the subsidy secretariat in advance of your "plan to apply for multiple subsidies" and to state it in the documents. Failure to state it is regarded as improper receipt, and you would be forced to return all subsidies plus an additional charge (20-30% of the returned amount).

Q5: If I do not hold the Takken specialist qualification, will the subsidy application be harder? And can the subsidy cover the tuition for a Takken specialist course?

A: Even without the Takken specialist qualification, you can still apply. However, the adoption rate tends to be 20-30% lower than for qualification holders. The reason is that, without the qualification, taking a course before starting the business (usually 3-6 months) becomes necessary, creating a risk of delaying the business start. As a countermeasure to make adoption more likely, it is effective to show in your documents at the time of application that you have "already enrolled in a Takken specialist course" and that you "plan to obtain the qualification within 6 months." As for the tuition, there are cases where it is included in the eligible expenses and cases where it is not. If included, it can be paid from the subsidy; if not, it is borne with your own funds. The merit of including it in the eligible expenses is that the course fee (150,000-250,000 yen) can be covered by the subsidy, but the demerit is that the course receipt and completion certificate are strictly checked, and if the tuition is "above market rate," it may be flagged. Usually, at the time of the performance report, the original receipt and completion certificate from the school are required.

Steps and Precautions After Obtaining the Subsidy

Management after applying for and obtaining the subsidy determines the success or failure of the business. Many real estate companies slip up on the performance report after obtaining the subsidy and fall into repayment trouble.

Preserving Evidence of Expenses

For every expenditure claimed as an eligible expense, preserve the following evidence:

• Receipts (clearly stating the issuing company name, amount, date, and content)
• Delivery slips and invoices
• Bank transfer slips (with the payer's name, the payee, date, amount, and a note of the expense content in the memo field)
• Credit card statements (a card in the company's name)

A point of particular caution for Chinese-owned real estate companies: when purchasing software or services from a Chinese company, the receipt may be issued in Chinese. In this case, a Japanese translation is essential (a translation certificate is also required). When preparing copies of the original receipts (to be submitted at the performance report), having certification by a Japanese Gyoseishoshi makes the review go more smoothly.

Properly Conducting the Performance Report

After the end of the subsidy project period, you are obligated to submit a performance report, usually within 3 months. The report includes:

• A breakdown table of eligible expense expenditures
• Copies of receipts (for all items)
• For purchased goods, photos of those goods (software screens, computers, furniture, etc.)
• A comparison with the business plan: planned amount vs. actual amount

The most common trouble in performance reports is the following three points: "incomplete receipts," "ineligible expenses mixed in," and "expenditure timing outside the subsidy project period." For example, even if the subsidy project period is April 2024-March 2025, if an item ordered on March 25 is delivered on April 10, it is usually ineligible.

Business Continuity and Leveraging Additional Financing

After obtaining the subsidy, you actually start the business. Many Chinese real estate agencies face a shortfall in initial investment. The subsidy alone cannot cover the funds needed to start operations (such as the 10 million yen deposit). At this stage, the following financing systems can be leveraged:

• Startup loans from the Japan Finance Corporation: up to 30 million yen, with interest of around 1.5-2%. A track record of obtaining a subsidy makes the review more favorable.
• Municipal loan guarantee systems: loans through the Credit Guarantee Association, with repayment periods of 10 years or more possible.
• Short-term loans from Chambers of Commerce: quick bridge loans of around 1 million to 5 million yen.

By combining a subsidy with financing, you can secure sufficient startup capital.

Summary and Next Steps

The subsidy for Chinese real estate agencies in Japan is a powerful tool for turning an ideal business plan into reality. To summarize the key points of the subsidy:

1. There are multiple subsidy options, allowing you to choose the optimal system based on company size and plan.
2. The subsidy amount is 500,000-2 million yen, on a scale that can cover 20-40% of the initial investment.
3. Applying in parallel with obtaining the Takken business license allows you to start the business efficiently.
4. Clearly stating a differentiation strategy for Chinese clients improves the adoption rate.
5. Rigor in the performance report is important. Manage receipts carefully from the outset.

To Chinese business owners about to start a real estate agency business, or expand an existing one, we provide professional support. We can offer detailed consulting from preparing the subsidy application through to the performance report.

Reserve your free initial consultation now. We will help you select the subsidy system best suited to your business plan, build an application strategy, and support document preparation. The initial consultation is completely free and strictly confidential. Feel free to contact us by email, LINE, or phone (Chinese-language support available).

Leverage subsidies to take your real estate business to the next level. We promise to be your partner in doing so.