Japan exit tax guide
Specified assets, the ¥100M review threshold, deemed disposal, deferral, and deadlines.
Japan’s exit tax can tax unrealized gains on specified financial assets as if sold when you leave, if those assets total at least ¥100M and you meet residence-history conditions — deferral is possible for up to five (potentially ten) years with a tax representative and security.
Effective: 2026-01-01 to 2026-12-31
Professional review pending — treat as draft and confirm with the authorities.
Key points
- Applies to specified financial assets (e.g., securities), not everything.
- Review threshold: specified assets totaling at least ¥100M.
- Residence-history conditions must also be met.
- Deferral possible (≈5, up to 10 years) with a representative and security.
What it taxes
The exit-tax regime treats certain financial assets (such as securities and some derivatives) as deemed-sold at departure, taxing the unrealized gain. It applies where those specified assets total at least ¥100M and you meet residence-history conditions (broadly, having been a resident for enough of the recent period). Nationality alone is not the test — foreign nationals can be caught.
Deferral and deadlines
Because taxing unrealized gains at departure is harsh, deferral is available — ordinarily for five years and potentially ten — if you appoint a tax representative and provide security. There are filing deadlines around departure, and later actual sale or return can adjust the result. This is a mandatory professional-review area before surrendering residence.
Who this is for
- People with ≥¥100M of financial assets leaving Japan
- Long-term residents with large portfolios
What this is not
- People well below the threshold
- This is a mandatory professional-review area — do not plan a departure around it without advice.
Frequently asked questions
How does tax residency work in Japan?
For tax, Japan classifies you as non-resident, non-permanent resident, or permanent resident — separate from your immigration status. Broadly: non-residents are taxed only on Japan-source income; non-permanent residents (in Japan under 5 of the last 10 years, without permanent intent) are taxed on Japan-source income plus foreign income paid in or remitted to Japan; permanent residents (for tax) are taxed on worldwide income. This affects foreign income and investments, so confirm your category with the NTA or a tax accountant.