Money & Finance

Quick Answer Who must file: Freelancers, side-income earners (¥200,000+/year extra income), those with 2+ employers, people who left mid-year, and anyone claiming deductions beyond the standard year-end adjustment. Who doesn’t need to file: Salaried employees with one employer — your company handles it via nenmatsu chōsei. Deadline: February 16–March 15 (for previous year’s income). Biggest mistake foreigners make: Not knowing about the second-year residence tax spike (housing allowance stops, ¥100,000–300,000 bill arrives in June). ...

You can invest in Japanese and global stocks, ETFs, and mutual funds from Japan — and the NISA tax-free account makes it especially worthwhile. Opening an account takes about 20 minutes online. Here’s how. Why Invest from Japan? Japan’s NISA (Nippon Individual Savings Account) gives you a tax-free investment wrapper that’s genuinely excellent: New NISA (2024+): ¥3.6 million/year investment limit, tax-free growth forever, no holding period requirement Japan-based accounts give you access to Japanese stocks, Tokyo-listed ETFs, and global index funds Yen-denominated investing hedges against currency risk if you plan to stay long-term Sending money internationally? Use Wise to fund your Japanese account from overseas — much cheaper than bank wire transfers. ...

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. ...