Moving to Japan: A Practical Guide for Expats

Japan is a country of extraordinary depth — culturally rich, technologically advanced, safe, and uniquely liveable for those who embrace its character. It has historically been considered difficult for foreigners to settle in long-term, but Japan has been actively liberalising its visa and residency framework in response to demographic pressure and skills shortages. As of 2026, there are more accessible pathways than ever before for skilled professionals and investors.

The British expat community in Japan is small but well-established — an estimated 20,000 UK nationals as of 2026, concentrated in Tokyo, Osaka, and Kyoto.

Visa Routes for Long-Term Residence

Work Visa (Engineer/Specialist in Humanities/International Services, etc.). Japan's standard employment visa requires employer sponsorship. Processing typically takes four to six weeks. The employer submits the application on your behalf to the immigration authorities, and you receive a Certificate of Eligibility (COE) to present at the Japanese consulate in the UK.

Highly Skilled Foreign Professional (HSFP) Visa. Japan's points-based system for attracting top-tier talent. Points are awarded for academic qualifications, professional career, and annual salary. Meeting 70 points grants HSFP status; 80 points qualifies for a faster-track permanent residency pathway.

Benefits of HSFP include:

• Permanent residency eligibility after 3 years (70 points) or 1 year (80 points), versus the standard 10 years.
• Permission to bring parents and household staff.
• A spouse who can work in Japan.

The Japan Special Business Visa and the J-Skip Visa (launched 2023) provide additional routes for high-earning individuals (J-Skip targets those earning JPY 20 million or more per year — approximately £100,000+ — or those with advanced degrees and significant salary).

Startup Visa. Allows foreign entrepreneurs to establish a business in Japan. Initially a one-year visa to set up the business; converted to a Business Manager visa once operational.

Business Manager Visa. For those managing a Japanese business. Requires a registered company in Japan with premises (a physical office, not a virtual address). The minimum capital requirement was raised from JPY 5 million to JPY 30 million (approximately £150,000) with effect from 16 October 2025, alongside new requirements covering management experience or qualifications, Japanese-language ability, and the employment of staff.

Investor / Business Manager Visa. Separate from the Business Manager visa for smaller businesses; targets those making significant business investments.

Permanent Residency. Standard permanent residency is available after 10 years of continuous legal residence. HSFP holders can qualify in 1–3 years. Permanent residents have no employment restrictions but are subject to Japanese worldwide taxation.

Spouse Visa. For those married to a Japanese national. A practical and common route.

Japanese Tax

Japan taxes residents on worldwide income once you have been a resident for more than five years in the last ten years. New arrivals are taxed only on Japan-source income and foreign-source income paid in Japan for the first five years — a useful temporary window for those with foreign investment income.

After five years of residency, you become a "permanent resident" for tax purposes (different from immigration permanent residence) and are taxed on worldwide income.

Japanese income tax rates are progressive and relatively high: 5% up to JPY 1.95 million; 10% up to JPY 3.3 million; 20% up to JPY 6.95 million; 23% up to JPY 9 million; 33% up to JPY 18 million; 40% up to JPY 40 million; 45% above JPY 40 million. Municipal tax adds approximately 10% on top. Social insurance contributions are additional.

Exit Tax. Japan levies a deemed disposal exit tax on certain financial assets (securities and derivatives worth more than JPY 100 million) when a resident who has been in Japan for five or more years in the last ten years permanently leaves Japan. This is a genuine planning consideration for long-term residents.

UK-Japan Double Tax Treaty. A comprehensive treaty; provides relief from double taxation on income taxed in both jurisdictions.

Banking

Japan's banking system is modern and reliable but the paperwork requirements and language barriers can make the initial setup more complex than in English-speaking countries:

• SMBC (Sumitomo Mitsui Banking Corporation), MUFG (Mitsubishi UFJ Financial Group), Mizuho — Japan's three megabanks; English-language service is available at main branches; online banking increasingly in English.
• Japan Post Bank — universal coverage including rural areas; easy account opening for residents; limited in international features.
• Sony Bank and Rakuten Bank — digital banks with good foreign currency features and English interfaces.
• HSBC Japan (limited branches) — primarily private banking; not a retail option for most expats.

An ATM card that works in Japan is essential immediately on arrival — 7-Eleven and Japan Post ATMs accept foreign Visa and Mastercard. Most Japanese shops are increasingly cashless but cash remains important for many local transactions, especially outside major cities.

Healthcare

Japan has universal healthcare coverage under the National Health Insurance (NHI) system. All legal residents (including foreign nationals) must enrol either in the employee health insurance scheme (Shakai Hoken — provided by employers) or the national health insurance (Kokumin Kenko Hoken — for self-employed, students, and retirees).

Coverage is comprehensive — approximately 70% of medical costs are covered by insurance; you pay the remaining 30% at point of service. Out-of-pocket maximums apply per month (approximately JPY 80,000–250,000 depending on income).

Japan's healthcare system is world-class in most areas of medicine. Language is the main challenge — access to English-speaking doctors is good in Tokyo, Osaka, and Kyoto; limited in rural areas. International Hospital Tokyo, St. Luke's International Hospital, and Roppongi Hills Clinic are among the most expat-accessible private facilities.

International private medical insurance is worth maintaining for medical evacuation, UK private care when visiting, and access to English-language concierge medical services.

Education

Japan has a small but growing international school sector, concentrated in Tokyo:

• Tokyo International School, Yokohama International School, Canadian Academy — IB curriculum; well-established.
• British School in Tokyo — British curriculum; excellent reputation; expensive.
• American School in Japan (ASIJ) — large, well-resourced; predominantly American curriculum.

School fees range from JPY 2–4 million per year (approximately £10,000–20,000). Many employer packages for senior expat roles include school fee allowances.

Cost of Living

Tokyo is expensive but not as extreme as London or Singapore for many categories. As of 2026:

• A two-bedroom apartment in central Tokyo (Minato-ku, Shibuya, Shinjuku): JPY 250,000–500,000 per month.
• Outside central wards or in Osaka: 30–50% less.
• Eating out: Japan is exceptional value for quality food — a ramen bowl: JPY 1,000; a sushi omakase at a high-end restaurant: JPY 30,000+. The range is extraordinary.
• Groceries: comparable to mid-UK supermarket prices; some imported goods carry a premium.
• Transport: excellent and affordable — monthly commuter pass in Tokyo: approximately JPY 10,000–20,000.

Daily Life Practicalities

• Language: Japanese is challenging; limited English is spoken outside tourist areas and international business. Learning at least basic Japanese is highly rewarding and practically important for daily life outside the expat bubble.
• Safety: Japan is one of the world's safest countries. Crime rates are exceptionally low.
• Natural hazards: Japan is a seismically active country. Earthquake preparedness (emergency kit, understanding evacuation procedures) is important and is routine for residents.
• Working culture: Japan's work culture emphasises loyalty, hierarchy, and long hours. International employers are somewhat more flexible, but expectation management is important.
• Registration: All residents must register at the local municipal office (Kuyakusho). This is the first step after arriving with a visa.

How Global Investments Can Help

Japan's five-year worldwide taxation threshold, exit tax provisions, and complex interaction with UK obligations require careful pre-arrival and ongoing planning. Global Investments advises clients relocating to Japan on investment portfolio structuring before the five-year horizon, UK departure planning, and the management of UK retained assets during a Japan posting. Speak to our team to understand the planning opportunities available in your first years as a Japanese resident.

This guide is for general information only. Tax rules, visa requirements, and regulations change frequently. Always seek professional legal and financial advice tailored to your circumstances before making relocation or investment decisions. Investments can fall as well as rise in value.