Japan is unlike any other expat destination. An extraordinarily safe, clean, and efficient country with a culture of unmatched depth, cuisine that is genuinely world-class, and urban environments — particularly Tokyo and Osaka — that operate at a level of logistical precision that shames most Western cities. The challenges are real: the language barrier is significant, the bureaucracy is meticulous, and some cultural norms require adjustment. But for those who engage with Japan seriously, the rewards are equally extraordinary.
Visa Routes
Work Visa (Engineer/Specialist in Humanities/International Services). The most common visa category for white-collar foreign workers. Covers roles in technology, research, law, accounting, finance, languages, and related fields. Requires a job offer from a Japanese company or organisation, and the employer typically handles the visa application through the Ministry of Justice. Initially valid for one to five years, renewable.
Highly Skilled Professional Visa (HSP). Japan's points-based visa for exceptional professionals. Points are awarded for academic qualifications, professional career, salary level, age, Japanese language ability, and research achievements. A score of 70 or more qualifies for the HSP visa (Stage 1 and Stage 2 categories). Benefits include longer visa validity, accelerated permanent residency eligibility (from the usual ten years down to three years for 70+ points, or one year for 80+ points), and more flexible activity permissions.
Business Manager Visa. For those establishing or managing a business in Japan. The requirements were substantially tightened from 16 October 2025: the minimum capital (or total investment) was raised from JPY 5 million to JPY 30 million (approximately £155,000), applicants must employ at least one full-time Japanese national or permanent resident, and either the applicant or a designated employee must demonstrate B2-level (JLPT N2) Japanese proficiency.
Digital Nomad Visa. Japan introduced a Digital Nomad Visa (technically the "Designated Activities" visa under this category) in 2024. Allows remote workers employed by non-Japanese companies to live in Japan for up to six months. Requires a minimum annual income of JPY 10 million (approximately £52,000), health insurance, and proof of the overseas employment relationship.
Spouse Visa. Marriage to a Japanese national grants the right to a spouse visa, which allows free employment activity. Long-term residents of ten or more years can apply for permanent residency (or three years if married to a Japanese national).
Permanent Residency. Generally requires ten years of continuous legal residency (reduced to three years for those who held 70+ HSP points, and to one year for 80+ HSP points). Permanent residency does not grant Japanese citizenship.
Residence Card Registration
All medium- and long-term foreign residents in Japan receive a Residence Card (Zairyu Card) from immigration at the port of entry. Within 14 days of arrival, you must register your address at the local municipal office (shi/ku/cho/son office). This is Japan's equivalent of the Anmeldung — the registration underpins your access to the national health insurance system, your My Number (individual number), and virtually all other administrative processes.
The My Number (個人番号) is Japan's national identification number. You will receive a My Number notification card within a few weeks of address registration. The My Number is required for financial accounts, employment tax records, and social insurance registrations.
The 5-Year Non-Permanent Resident Tax Rule
Japan's tax system offers an important and attractive window for newly arrived foreign nationals. Non-permanent residents (those who have lived in Japan for less than five years of the past ten years and do not have the intention to permanently reside in Japan) are taxed on:
- All Japan-source income
- Overseas income remitted to Japan
Overseas income that is not remitted to Japan is not subject to Japanese income tax during the non-permanent resident period.
After five years of residency (or if you hold permanent residency or intend to reside permanently), full tax residency applies and worldwide income becomes assessable in Japan.
This five-year window can be highly valuable for those with substantial overseas investment income, provided that income remains outside Japan (not remitted). Planning is essential: what constitutes "remittance" in Japanese tax law requires careful interpretation. Take advice from a Japan-qualified tax adviser (and a UK adviser on departure planning) before relying on this structure.
Japan's income tax rates are progressive, reaching 45 per cent on income above JPY 40 million, plus a 10 per cent local inhabitant's tax — an effective top marginal rate approaching 55 per cent on domestically assessed income. The non-permanent resident regime therefore represents a significant benefit for those managing overseas income carefully.
Japan Health Insurance (Kokumin Kenkou Hoken / Kenkou Hoken)
All residents of Japan (including foreigners) are required to enrol in health insurance. There are two main systems:
Company-based insurance (Kenkou Hoken / Shakai Hoken). Employees are enrolled in their employer's health insurance scheme. Premiums are split between employer and employee (roughly half each). Coverage is comprehensive: 70 per cent of medical costs are covered by insurance, with the patient paying 30 per cent (reduced for children and the elderly).
National Health Insurance (Kokumin Kenkou Hoken / NHI). Self-employed individuals, freelancers, and those not covered by company insurance enrol in NHI through their municipal office. Premiums are income-based and can be substantial for higher earners.
The Japanese healthcare system is well-regarded — technically competent, extensive, and relatively affordable at point of use (with the 30 per cent co-payment structure). Many doctors and hospitals, particularly outside the major cities, do not operate in English — having a Japanese-speaking colleague, guide, or interpreter for medical appointments is highly advisable.
Nenkin — the Japanese Pension System
All Japan residents aged 20–59 are required to enrol in the National Pension (Kokumin Nenkin) system. The flat monthly contribution is approximately JPY 16,000–17,000 (2024 figures). Those employed full-time are enrolled in the Employees' Pension Insurance (Kousei Nenkin), with higher contributions that provide higher eventual benefits.
Japan has Social Security Totalization Agreements with a number of countries, including the UK. Under the UK-Japan agreement, workers can avoid paying pension contributions in both countries simultaneously — if you are covered by the Japanese system, you are generally exempt from UK National Insurance contributions during that period (subject to specific conditions and a certificate of coverage). Take advice on how your eventual UK State Pension entitlement is affected.
Foreign nationals who leave Japan permanently without having accumulated enough years for a Japanese pension benefit may be entitled to a Lump-sum Withdrawal Payment — a refund of a portion of their Kousei Nenkin contributions. Applications must be made within two years of leaving Japan.
Banking in Japan
Japanese banking administration is largely conducted in Japanese — forms, instructions, automated phone systems, and sometimes customer service staff operate only in Japanese. Major retail banks include Mitsubishi UFJ (MUFG), Sumitomo Mitsui (SMBC), and Mizuho. Opening a bank account requires a Residence Card, My Number, and your address in Japan. Some banks now offer foreign-language support.
Japan Post Bank (Yucho) is often easier for new arrivals at an early stage. International financial services from providers such as Sony Bank and SMBC Trust Bank offer English-language internet banking and competitive FX rates. Wise (TransferWise) is widely used for international transfers.
Japan remains more cash-reliant than most developed economies, though cashless payments are growing rapidly. ATMs at 7-Eleven and Post Office branches reliably accept international cards.
Choosing Your City
Tokyo. The world's largest metropolis, and in the view of many who live there, the world's most efficient city. The concentration of culture, cuisine, technology, nightlife, and infrastructure is incomparable. Within Tokyo, expats typically concentrate in Minato-ku (Azabu, Hiroo, Roppongi) — home to embassies, international schools, and the highest concentration of foreign residents — or in Shibuya, Shinjuku, and Nakameguro for a more urban, local experience.
Osaka. Japan's second largest commercial centre, with a more extrovert and informal character than Tokyo. Osaka's food scene (takoyaki, okonomiyaki, kushikatsu) is legendary. Lower cost of living than Tokyo. Strong commercial and manufacturing base.
Kyoto. The cultural heart of Japan — temples, traditional arts, kaiseki cuisine, and extraordinary architectural heritage. A much smaller, slower city than Tokyo or Osaka. More for those seeking traditional Japan with a degree of daily calm, though tourism pressure can be intense in peak seasons.
How Global Investments Can Help
Japan's five-year non-permanent resident window, combined with careful management of overseas income remittance, can represent a highly tax-efficient period for internationally mobile HNW individuals. But it requires proper structuring, UK departure planning, and ongoing compliance — both in Japan and vis-à-vis HMRC.
Global Investments can connect you with Japan-specialist expatriate tax advisers and support your cross-border wealth planning before and during your Japan assignment. Contact our team to discuss how a Japan relocation fits into your international strategy.
This guide is for general information only and does not constitute financial, legal or tax advice. Rules, fees and regulations change frequently; verify current requirements with a qualified adviser before acting.