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繁體中文Who this is for
- You want to move to Japan as a family and have your children educated here
- You want to know how your home-country and overseas assets will be taxed once you move
- You want to pass assets spanning Japan and your home country smoothly to the next generation
- You want to manage your Japanese real estate and financial assets together as a family
Ways to move to Japan
Japan has no "investor immigration" program that grants a visa for a set amount of investment or a real estate purchase. You need a status of residence based on your activities or personal status, such as running a business (Business Manager), working as a professional (Highly Skilled Professional and others), or being a family member of a Japanese national or permanent resident. We plan which statuses each family member can obtain, and in what order, based on their background and business.
Tax residency status
Under Japanese income tax, the scope of taxation for foreign nationals depends on how long they have lived in Japan.
| Category | Who | Taxable income |
|---|---|---|
| Non-resident | No domicile in Japan, and residence of less than one year | Japan-source income only |
| Non-permanent resident | Residents without Japanese nationality who have lived in Japan for five years or less in the past ten years | Income other than foreign-source income, plus foreign-source income paid in or remitted to Japan |
| Resident other than a non-permanent resident | All other residents | Worldwide income |
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The tax-law term "non-permanent resident" is a separate concept from the "Permanent Resident" status of residence. How you organize assets and remit funds before moving affects your tax burden.
Inheritance and gift tax planning
Under Japanese inheritance and gift tax, the scope of taxable assets depends on the domicile, nationality and status of residence of the deceased and the heirs. Overseas assets are taxed in principle, but there is a special rule for foreign nationals.
- If a person lives in Japan under a work or business status of residence (Appended Table 1 of the Immigration Control Act) and had a domicile in Japan for a total of ten years or less within the 15 years before the inheritance began, overseas assets are, under certain conditions, outside the scope of Japanese inheritance tax.
- Whether the special rule applies is determined by the circumstances of both the deceased and the heirs.
- Permanent residency takes you out of Appended Table 1, so the special rule no longer applies. The same is true of naturalization.
Japan's top inheritance tax rate is 55%.
What we do
Pre-move planning
We review your nationality, expected status of residence, types and locations of assets, and home-country tax system, and bring the timing of the move, asset restructuring, remittance methods, and inheritance and gift planning together in a single written plan.
Tax returns and reporting
Certified tax accountants prepare income tax and inheritance and gift tax returns, as well as the statement of overseas assets and the statement of assets and liabilities. We also assess exit tax on departure from Japan, and confirm how this relates to home-country filings with overseas professionals.
Asset management and succession
We combine the methods that suit your family: setting up and running an asset management company, designing trusts including family trusts, wills valid in Japan, and the use of life insurance.
Real estate
We support the purchase of homes and investment property, ownership structuring, management and sale.
More about Real EstateFamily office
A consolidated view of your assets and multi-currency reporting, tax and filing management, property management, children's education, medical and lifestyle support, charitable giving and setting up foundations, all through one point of contact. Registration under the Financial Instruments and Exchange Act may be required, for example when managing assets of people outside the family, so we also review the operating structure.
How we work
- 1
Assessment
We learn about your nationality, status of residence, where your assets are and your home-country tax system. A non-disclosure agreement can be signed.
- 2
Projections and plan
We provide a plan that compares the tax burden and procedures for each timing and method of moving.
- 3
Implementation
We carry out status of residence applications, company setup, asset transfers, real estate purchases, and the preparation of wills and trusts.
- 4
Annual review
We review the plan in line with your length of residence in Japan, family structure and changes in the law.
Why TIMOA
- 01
The same team plans status of residence and tax, so decisions such as when to apply for permanent residency are made with inheritance in view.
- 02
Professionals versed in the tax systems of Japan, China and the rest of Asia work with you in Japanese, Chinese and English.
- 03
You have a dedicated contact, and your family's information is handled only by a limited number of staff.
Fees
Fees are quoted once we understand the nature and scope of your engagement. Please contact us first.
Ask about feesFrequently asked questions
If I buy real estate in Japan, can I live in Japan?
No. Japan has no program that grants a visa for investment or real estate purchases. You need a status of residence based on your activities, such as running a business or working.
If I move, will my home-country assets also be taxed in Japan?
For income tax, foreign nationals who have lived in Japan for five years or less in the past ten years (non-permanent residents) are not taxed on foreign-source income other than what is paid in or remitted to Japan. For inheritance and gift tax, the scope is determined by status of residence and length of residence in Japan.
How does permanent residency change inheritance tax?
The special rule for foreign nationals no longer applies, and overseas assets also become subject to Japanese inheritance tax. We recommend weighing the benefits of permanent residency against the tax impact when deciding when to apply.
Can we manage family assets through a Japanese company?
Yes. One approach is to set up an asset management company to hold real estate and financial assets. Taking in and managing assets of people outside the family may require registration under the Financial Instruments and Exchange Act.