Living Guide
The practical side
of living in Tokyo.
Visa, tax residency, health insurance, pension, and your driving license. The administrative side of relocating to Japan is complex โ here's a clear overview of what you need to know.
"I'm not a tax advisor or immigration lawyer, but having lived and worked across both sides of this system, I know what questions you need to be asking โ and who to ask them to. Consider this a starting map, not a final answer."
โ YASUHIRO MARUYAMA
Visa & Residence
Staying legally
in Japan.
Most expat executives come to Japan on a company-sponsored work visa. Here are the most common categories:
Engineer / Specialist
The most common visa for tech and finance professionals. Requires a bachelor's degree or 10+ years of experience in the relevant field. Sponsored by employer.
Intra-Company Transfer
For employees transferred from a foreign parent company to a Japanese subsidiary. Typically valid for 1โ3 years, renewable.
Business Manager
For executives managing a Japanese business operation. Requires demonstrated management responsibility and often a physical office.
Highly Skilled Professional (HSP)
Points-based system for senior professionals. Significant benefits including faster permanent residency eligibility (1โ3 years vs. the usual 10).
My Number Card
Japan's national ID system. You'll receive a My Number upon registration at your local ward office (ๅบๅฝนๆ). Essential for tax filing, social insurance, and banking.
Residence Card (ๅจ็ใซใผใ)
Required to carry at all times. Issued at major airports on arrival with a long-stay visa. Register your address at the local ward office within 14 days of moving in.
Tax
What you'll
owe Japan.
Japan's tax system has important nuances for foreign residents โ particularly around worldwide income and treaty provisions.
Income Tax Rates
Progressive rate from 5% to 45% at the national level. Combined with local inhabitant tax (~10%), effective marginal rates can reach 55% for high earners.
Tax Residency
You become a Japanese tax resident if you have a registered domicile or have lived in Japan for 1+ year. As a resident, you're generally taxed on worldwide income.
Non-Permanent Resident
For the first 5 years, some foreign income may be taxed only on the amount remitted to Japan โ this is the "non-permanent resident" status. Important planning opportunity.
Tax Treaties
Japan has treaties with most Western countries to avoid double taxation. The US-Japan treaty is particularly complex โ seek specialist advice if you have US income.
Filing
Most company employees have tax withheld monthly (ๆบๆณๅพดๅ). A year-end adjustment (ๅนดๆซ่ชฟๆด) handles most situations. Self-filing (็ขบๅฎ็ณๅ) required for additional income or deductions.
2027 Reform
From FY2027, Japan will impose a minimum 30% effective tax rate on high earners (estimated income over ยฅ330M). Relevant for executives with significant investment income or financial assets.
Real estate investment income is taxed separately in Japan. If you hold investment properties, the interaction between rental income, capital gains, and your employment income requires careful planning โ particularly for tower condominium holdings under the 2027 reform.
Health Insurance
Healthcare in
Japan.
National Health Insurance
Japan's universal health system covers 70% of most medical costs. Enrollment is mandatory for all residents. Your employer typically handles enrollment if you're company-sponsored.
Employee Insurance (ๅฅไฟ)
Most corporate expats are enrolled in their company's health insurance scheme โ generally more comprehensive than the national system. Covers the employee and dependents.
Copay
Standard copay is 30% of medical costs for working-age adults. Annual out-of-pocket is capped under the High-Cost Medical Expense System (้ซ้ก็้ค่ฒป).
English-Speaking Doctors
International clinics in Minato and Shibuya cater to expats with English-speaking staff. JMIP-certified hospitals are internationally accredited. Costs can be higher than standard hospitals.
Supplemental Insurance
Some expats maintain private international health coverage (e.g., AXA, BUPA) alongside Japanese health insurance โ particularly if they travel frequently or want global coverage.
Pension
Japan's pension
system.
Enrollment
All residents aged 20โ59 must enroll in Japan's public pension system (ๅ็ๅนด้ for employees). Enrollment is automatic for corporate employees.
Lump-Sum Withdrawal
If you leave Japan permanently without claiming a pension, you may be eligible for a lump-sum withdrawal (่ฑ้ไธๆ้) of up to 5 years of contributions. Apply within 2 years of departure.
Totalization Agreements
Japan has pension totalization agreements with many countries (USA, UK, Germany, etc.) to avoid double contributions and allow benefit combining. Worth checking before you arrive.
iDeCo
Japan's individual defined contribution pension plan. Tax-advantaged retirement savings with deductible contributions. Available to foreign residents enrolled in the national pension.
Driving License
Getting licensed
in Japan.
IDP (Short-Term)
International Driving Permits from Geneva Convention countries (most of Europe, USA) are valid for 1 year from entry. Carry with your original license.
License Conversion
To drive beyond your first year, you'll need to convert your foreign license to a Japanese license at the licensing center (้่ปขๅ
่จฑ่ฉฆ้จๅ ด). Process varies significantly by country.
Easy Conversion Countries
Switzerland, Germany, France, Belgium, Iceland โ typically requires only a written test and eye exam. No driving test required.
Harder Cases
USA, Canada, and some Asian countries require both a written and practical driving test. Allow 1โ3 months for the full process. Some applicants need multiple attempts.
Practical Note
Most central Tokyo executives don't own cars โ parking costs ยฅ40,000โยฅ80,000/month in premium areas, and public transport is excellent. Car ownership makes more sense in suburban locations like Setagaya or Den-en-chofu.
Banking
Setting up
your finances.
Expat-Friendly Banks
SMBC Trust (Prestia) and SBI Shinsei Bank offer English-language service and are most accessible for new arrivals. Major Japanese banks (MUFG, SMBC, Mizuho) require Japanese language proficiency.
What You Need
Residence Card, My Number Card (or notification letter), passport, and sometimes a Japanese phone number. Some banks require 6 months of residency.
Cash Culture
Japan remains significantly cash-dependent compared to other developed markets. An IC card (Suica or Pasmo) covers most daily transport and convenience store purchases.
Overseas Transfers
Wise (TransferWise) is widely used by expats for international transfers. Japanese bank international wire fees are high. Set up Wise before or shortly after arrival.
Disclaimer: This guide provides general information only and does not constitute legal, tax, or financial advice. Immigration rules, tax laws, and administrative procedures change frequently. Always consult a qualified immigration lawyer, certified tax accountant (็จ็ๅฃซ), or licensed professional for advice specific to your situation.
Questions about your specific situation? I'm happy to point you in the right direction.
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