Prime Minister Sanae Takaichi¡¯s administration is gearing up to compile a set of policies that would affect foreign nationals ¡ª from tighter restrictions on real estate purchases to higher visa fees and departure tax, as well as better Japanese language education.

As Takaichi is prioritizing drafting those policies, she has reorganized a ministerial conference on the topic and established a government panel of experts, while her fellow Liberal Democratic Party lawmakers are also discussing what policies should be revised.

The experts and lawmakers are expected to present their recommendations to Takaichi in January.

When the first ministerial meeting under Takaichi was held on Nov. 4, she talked about how inbound tourists and foreign workers are necessary for Japan, which is facing a labor shortage amid a graying society.

¡°However, it is also the case that a situation is now arising in which Japanese nationals are feeling unease or a sense of injustice in response to illegal activities or deviations from the rules by a subset of foreign nationals in Japan,¡± said Takaichi. ¡°We must not create circumstances where foreign nationals who live by the rules find it uncomfortable to reside in Japan.¡±

The following are potential changes that are under discussion.

The government is aiming to restrict purchases of real estate ¡ª ranging from land, apartment condos to forests and farmlands ¡ª by foreign buyers for national and economic security reasons. Existing rules and regulations concerning such purchases are seen as lax compared to those in other countries.

A buyer has no obligation to disclose their nationality to Japan¡¯s real estate registry when making most purchases. Only their existing address must be registered. This makes it difficult for the government to grasp how many purchases are made by foreign buyers. Only purchases of farmland require the buyer¡¯s nationality to be registered.

As such, the government is eyeing the creation of a centralized database to track real estate ownership by foreign nationals from as early as fiscal 2027, which starts in April 2027, the Yomiuri Shimbun reported last week.

The new database is expected to collect ownership data on apartments, forests, farmland and land designated as ¡°important,¡± such as remote border islands and areas surrounding defense-related facilities. It is also expected to log large-scale land transactions.

It is also aimed at keeping track of real estate purchases by foreign funds through companies based in Japan. For transactions involving forests, large tracts of land and land designated as ¡°important,¡± the government is considering requiring corporations to report the nationalities of their major shareholders and executives.

Foreign residents who reside in Japan for more than three months need to be covered either by an employer-sponsored health care insurance plan or...