Japan tax residency explained
Non-resident, non-permanent, and permanent resident — and what each is taxed on.
Japan taxes you by tax-residency category (separate from your visa): non-residents on Japan-source income, non-permanent residents also on remitted foreign income, permanent residents on worldwide income.
Key points
- Tax residency ≠ immigration status.
- Non-permanent resident: under 5 of last 10 years in Japan, no permanent intent.
- Remitting foreign income to Japan can make it taxable for non-permanent residents.
- Permanent residents (for tax) are taxed on worldwide income.
The three categories
For income tax, Japan classifies individuals as non-residents, non-permanent residents, or permanent residents — a tax concept distinct from immigration “permanent residence.” Non-residents are taxed only on Japan-source income. Non-permanent residents (those who have had a domicile in Japan for five years or less within the last ten, without permanent intent) are taxed on Japan-source income plus foreign-source income paid in or remitted to Japan. Permanent residents for tax are taxed on worldwide income.
Why it matters
Your category determines whether foreign salary, overseas investment income, or money you bring into Japan is taxable here. This is where many cross-border mistakes happen — for example, remitting overseas income to a Japanese account can create a tax liability for a non-permanent resident. When foreign income or assets are involved, confirm your status and obligations with the NTA or a licensed tax accountant (税理士).
Who this is for
- Newcomers with foreign income or assets
- Anyone unsure what Japan can tax
What this is not
- Treaty-specific or country-specific tax advice
- Cross-border tax is fact-specific; consult a 税理士 for your situation.
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.
Is money I receive from abroad taxable in Japan?
It depends on what it is and your tax residency. Foreign salary or business income can be taxable, and for non-permanent residents even foreign-source income becomes taxable to the extent it is paid in or remitted to Japan. Gifts and inheritances have their own rules. Simply receiving your own savings is different from receiving income. Because this is fact-specific, confirm with the NTA or a tax accountant rather than assuming it is tax-free.