🇯🇵 Moving to Japan: tax, residency and cost of living

Key facts

Top income tax

55%

Corporate tax

30%

Capital gains

20%

Wealth tax

No

Inheritance tax

Yes

Cost of living index

63

Safety

9/10

Internet quality

9/10

Visa-free destinations

190

Foreigners can own property

Yes

Residency in

0 months

Citizenship in

0 years

Taxes

Japan taxes residents' worldwide income on a national progressive scale from 5% to 45% across seven brackets, plus a 2.1% reconstruction surtax on that tax (until 2037) and a flat inhabitant tax of about 10% (6% municipal, 4% prefectural). Combined, the top rate is around 55%. There is no wealth tax, but inheritance and gift tax runs up to 55% and, for long-term residents, applies to the worldwide estate: that is the main reason wealthy families leave Japan. VAT (consumption tax) is 10% and crypto is taxed as miscellaneous income progressively up to 55%.

Residency and visas

Japan has clear residence routes: a work visa via an employer, the points-based Highly Skilled Professional visa (fast-tracked permanent residence in one to three years) and the Business Manager visa (capital from about 5 million yen plus an office). Ordinary permanent residence usually follows after ten years, naturalisation after five. Language and Japanese-language bureaucracy are the biggest hurdles.

Property ownership

Foreigners can freely buy property and land in Japan, in full ownership, with no residence or nationality requirement and no restrictions: a clear advantage over many other countries. There is an annual property tax of about 1.4% plus a city planning levy. The inflow of foreign buyers is politically debated, but as of 2026 there are no purchase restrictions.

Cost of living and quality of life

Japan reaches the global top for safety, public transport, infrastructure and healthcare (universal insurance), with a rich culture and excellent amenities. The downside: a strong language barrier, an intense work culture, the long distance to Europe, earthquake risk and an ageing society. Outside the big cities English is of limited use.

Passport and mobility

The Japanese passport has topped mobility indices for years in 2026, with visa-free access to around 190 destinations: the strongest or second strongest in the world. The downside for anyone seeking a second passport: Japan does not allow dual nationality, and naturalisation (possible after five years of residence) requires giving up your current nationality. As an end goal it is powerful, but it cannot be combined with your existing one.

Residency and visas

• Highly Skilled Professional-visum (puntensysteem): versnelde permanente verblijfsvergunning in één tot drie jaar bij voldoende punten op opleiding, inkomen, ervaring en leeftijd · Residency in 1 years
• Business Manager-visum: verblijf voor wie een onderneming opzet of leidt in Japan; kapitaal vanaf circa 5 miljoen yen (± € 27k) en een fysiek kantoor vereist · €27,000 · Residency in 10 years
• Werkvisum (engineer/specialist in humanities/international services e.a.): verblijf via een Japanse werkgever die de functie sponsort · Residency in 10 years
• Gezins-/partnervisum: echtgenoten en kinderen van Japanners of permanente residenten krijgen verblijf, met kortere route naar permanente verblijfsvergunning · Residency in 3 years

Why people move to Japan

• World-top passport, but no dual nationality

  The Japanese passport gives visa-free access to around 190 destinations and has led the world for years. Important caveat: Japan does not accept dual nationality, so naturalisation (after five years) means giving up your current passport. Powerful as an end goal, not as an addition.

• Foreigners buy property freely

  Unlike many destinations, Japan has no purchase restrictions for foreigners: you buy land and homes in full ownership, with no residence or nationality requirement. There is an annual property tax of about 1.4%. A concrete advantage for anyone wanting to lock wealth into real estate.

• Top-tier living, but honestly: high tax

  Japan offers safety, excellent healthcare and infrastructure, but it is a high-tax country: the combined top rate is around 55% and residents are taxed on worldwide income, with inheritance tax up to 55% on the worldwide estate. For anyone wanting to lower their tax burden, Japan is more a country to leave than a destination.