Money & Finance

Japan can be extremely affordable if you live like a resident rather than a tourist. The gap between how much foreigners spend and how much they could spend is often enormous. Here are the practical habits that actually make a difference to your monthly budget. 1. Cut Your Phone Bill First This is the single biggest win for most foreigners. A lot of people arrive in Japan and end up on a big carrier plan out of convenience — and pay for it. ...

What you'll learn in this guide What iDeCo is and how it differs from NISA Whether foreigners in Japan can open an iDeCo account iDeCo’s three tax benefits (contributions, growth, withdrawal) How to open an account and which provider to choose What happens to your iDeCo when you leave Japan Quick Answer iDeCo (個人型確定拠出年金) is Japan’s individual defined-contribution pension account. Foreigners enrolled in Japan’s pension system can open iDeCo. The key benefit: contributions are fully tax-deductible, investment growth is tax-free, and withdrawal is taxed at favourable rates. Maximum contribution is ¥23,000/month for company employees. Funds are locked until age 60. ...

Japan’s inheritance tax is one of the highest in the world, and it can apply to foreign residents in ways that most people don’t anticipate until it’s too late. Understanding your exposure is critical if you have significant assets or family overseas. Here’s how inheritance tax works for foreigners in Japan. Does Japan’s Inheritance Tax Apply to Foreigners? The short answer: yes, often. Japan’s inheritance tax can apply to foreign residents in ways that many are unprepared for. ...

Investing while living in Japan as a foreigner involves tax implications, account restrictions, and platform choices that don’t apply to Japanese residents. Getting the setup right from the beginning saves significant complications later. Here’s a practical guide to investing in Japan as a foreign resident. Start Here: Open a NISA Account New NISA (2024 onwards) is Japan’s tax-free investment account — the most important account for any foreign resident investing in Japan. ...

Quick Answer Japan’s pension lump-sum refund (脱退一時金): Foreigners who paid pension for 6+ months and leave Japan permanently can claim back up to 3 years of contributions. Apply within 2 years of leaving Japan — from outside Japan to the Japan Pension Service. 20.42% tax is withheld but partially recoverable. On a ¥350,000/month salary with 36 months of contributions, the gross refund is ~¥567,000. Don’t leave Japan without knowing this exists — thousands of foreigners forfeit it every year. ...

Japan has tax treaties with dozens of countries that can dramatically reduce what you owe — or prevent you from being taxed twice on the same income. Most foreigners don’t know whether their country has a treaty with Japan or how to use it. Here’s how to find out and what to do. The Golden Rule: It Depends on Your Home Country Japan taxes you on income earned in Japan once you become a resident. But your home country may still claim the right to tax your worldwide income — regardless of where you live. ...

Life insurance in Japan is widely available, competitively priced, and accessible to foreign residents — but the range of products is bewildering. Understanding what you actually need simplifies the decision significantly. Here’s a practical guide to life insurance in Japan for foreigners. Do You Need Life Insurance in Japan? Ask yourself: Do you have dependents (spouse, children) who rely on your income? → Life insurance is worth considering Are you single with no dependents? → May not need it yet Do you have significant debt (mortgage, business loans)? → Life insurance helps protect against that Is your employer’s death-in-service benefit adequate? → Check your contract Japan’s social safety net provides a widow/widower pension and child allowances — but these are usually insufficient to replace a full income. ...

Quick Answer All foreign residents in Japan aged 20–59 must pay into the national pension (国民年金). The monthly premium is ¥16,980 (2025). Company employees pay via payroll into the employee pension (厚生年金) — employer covers half. When you leave Japan, you can claim back 20–36 months of contributions as a lump-sum refund (脱退一時金) within 2 years of departure. Apply before leaving. Japan’s national pension system is mandatory for most foreign residents — and many foreigners are either unaware they’re enrolled or unsure whether contributions are worth making. The good news: there’s a refund program when you leave. Here’s everything you need to know. ...

Quick Answer NISA is Japan’s tax-free investment account. Foreigners with a residence card and My Number can open one — most don’t realize they’re eligible. The 2024 new NISA allows up to ¥3.6M/year tax-free, with a ¥18M lifetime limit and no expiry. NISA is Japan’s tax-free investment account — similar in concept to an ISA or Roth IRA — and foreign residents can open one. Most foreigners never use it because they don’t know they’re eligible. Here’s how NISA works and whether it makes sense for you. ...

NISA allows foreign residents in Japan to invest tax-free — but most foreigners don’t know they qualify or how to actually open an account. The 2024 NISA reform made it significantly more powerful. Here’s a clear guide to using NISA as a foreigner. What Is NISA? NISA lets you invest in stocks and mutual funds without paying capital gains tax or dividend tax on profits within the account. Normal investing in Japan: 20.315% tax on gains and dividends NISA investing: 0% tax on gains and dividends ...