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Japan is one of the world’s safest and most technologically advanced countries. From the neon lights of Tokyo to the historic charm of Kyoto, expats in Japan enjoy a high quality of life, world-class infrastructure, and a vibrant cultural scene.
In this guide, we’ll walk you through everything you need to know about relocating to Japan from a personal tax perspective, including tax residency, income tax, special tax regimes and tax return obligations.
GTC recommend that you organize your affairs in good time to get ahead and make the most of favorable tax treatment while making sure you’re meeting your tax return obligations.
if you spend more than 365 consecutive days in Japan.
if you are a citizen of Hungary unless you have no permanent home in Hungary during the tax year.
if you have a Japanese domicile.
if you are a Spain national who relocated to a tax haven less than five years ago.
if your ties are located in Mexico and 50% of your income arising in Mexico during the tax year.
if you are an EEA citizen and you are present in Hungary on more than 182 days during the tax year.
if you spend more than 365 consecutive days in Japan.
if you are registered with the Italian resident population.
if you are a citizen of Hungary unless you have no permanent home in Hungary during the tax year.
if you have a Japanese domicile.
if you are a Spain national who relocated to a tax haven less than five years ago.
if you are an EEA citizen and you are present in Hungary on more than 182 days during the tax year.
Providing you are considered a non-permanent resident, foreign incomes and gains will be exempt from taxation in Japan providing that the foreign incomes and gains are not remitted to Japan.
* Japan can be a very tax efficient place to live for expats & nomads and as such, Global Tax Consulting recommends seeking personalized tax planning advice to take advantage of the special tax regime.
If you receive incomes overseas while you are living in Japan, you may find the source country, as a starting point, continues to tax the income which may cause double taxation unless you are using special tax regime.
Double taxation agreements can be used to mitigate double taxation and receive tax free income. As such, the more double taxation agreements a country has, the better, as agreements will ensure you’re not taxed twice and even better, ensure your income is tax free.
At present, Japan has 92 double taxation agreements signed.
