Japan

A compelling place to live needs a workable structure

Japan can make sense for an owner building a real Japanese operation, a professional joining a Japanese organisation, or a family that values the country enough to make a sustained commitment. The practical question is not whether a foreign company can be incorporated cheaply. It is whether your intended work, household, banking and tax position fit together after the move.

The country should not be approached as a general low-tax destination. Ordinary residents are within worldwide income taxation, national progressive tax is supplemented by local taxation and social insurance, and retained foreign-company profits can require CFC analysis. A limited non-permanent-resident treatment can matter for some foreign income, but it does not exempt Japanese work or every overseas investment sale.

This country library separates the main decisions so that you can investigate them without confusing one approval with another. Immigration permission, tax residence, company registration and bank acceptance each require their own evidence. The implementation plan needs all four.

Start with the activity you will actually carry out

A new Business Manager application involves a substantial operating project under the rules effective from 16 October 2025, including the JPY30 million business scale requirement and a qualifying full-time employee. Startup Visa is a monitored preparation route through an approved organisation, not a permanent exemption from later business requirements. The points-based Highly Skilled Professional category still requires a qualifying activity and evidence.

The digital-nomad route is a six-month, non-extendable stay for qualifying nationalities, income and insured remote activity. It does not issue a residence card and should not be used as a proxy for long-term settlement. People employed in Japan normally need the appropriate work category; a family member’s permission does not automatically authorise unrestricted employment.

Resolve investments and company operations before arrival

Appreciated investments deserve attention before Japanese tax residence begins. Ordinary purchased securities generally retain their acquisition-cost starting point; a separate provision can recognise qualifying foreign exit-tax deemed proceeds. Those two rules are materially different from a universal immigration-date step-up. Original contract notes and foreign departure computations can be more valuable than a portfolio screenshot.

For a business owner, map where people will work, negotiate, approve payments and conclude contracts. A foreign entity can create Japanese taxable activity without becoming a Japanese-incorporated company. Conversely, a Japanese owner’s foreign business needs a defensible substance and CFC analysis. The country and the operating structure must be chosen together.

Family planning also belongs at the beginning. Schooling, spouse work rights, medical cover, nationality consequences and the treatment of a same-sex relationship cannot be inferred from the principal applicant’s eligibility. Confirm the actual household route before accepting a lease or making the move irreversible.

Choose a location for the life you will have

Japan’s climate varies sharply: the north and Sea of Japan side can have substantial winter snow; Pacific-side cities have different winter conditions; much of central and western Japan has hot, humid summers; Okinawa is subtropical. Look at the actual neighbourhood’s flood, landslide, tsunami and evacuation information rather than treating a country climate description as a property assessment.

Compare the practical city guides for Tokyo, Yokohama, Osaka, Kyoto and Fukuoka using the map above. Each covers neighbourhood choices, transport, housing and the arrival process. Test the journey to your actual office or school, the distance to healthcare, building insulation and cooling, and the process for receiving deliveries and installing internet.

The preliminary 2025 census counted approximately 123.05 million people nationally as at 1 October 2025. Japan uses the yen. Haneda and Narita both serve the Tokyo region but are different airports with different ground journeys; confirm the terminal and address before booking your first temporary accommodation.

Current rules and the changes already on the calendar

This research is dated 12 October 2026. The 2026 national basic-deduction changes have a 1 December commencement with special handling for earlier departure returns. Defense corporation tax already applies to business years beginning from 1 April 2026. Pension base-cap increases begin in September 2027 rather than being folded into 2026 costs.

Naturalisation needs particular care: the statutory ordinary domicile condition remains five consecutive years, but MOJ announced a general ten-year integration-review expectation from 1 April 2026. Permanent-residence guidance revised on 1 October 2026 mainly applies to applications from 1 April 2027, with particular household-income and public-burden provisions also affecting specified pending cases. These are different processes and different dates.

We can help assess whether Japan fits your objectives, document the reasons, and coordinate the company, banking and residence work. Your first inquiry is most useful when it includes your current tax residence, citizenships, business and income profile, family members and intended Japanese activity.