A note from Yasuhiro
I'm not a tax advisor or immigration lawyer — but having worked as an executive inside foreign companies in Japan, and having supported colleagues through their relocations, I know what questions you need to be asking and who to ask. This is a starting map, not a final answer. Always consult a qualified specialist for your specific situation.
Content reviewed September 2026. Visa, tax, and pension rules can change — always confirm current requirements before relying on the specifics here.
Visa & Residence
Renting a Home
Tenant Screening
Banking
Payments & Wallets
Phone, SIM & Wi-Fi
Tax
Health Insurance
Pension
iDeCo & Furusato Nozei
Driving License
Taxis & Ride-Hailing
Bike-Share
Car Ownership
Where to Live
Leaving Japan
FAQ
Phase 01
On Arrival
Getting set up in your first weeks — visa and residence procedures, finding and securing a place to live, and opening a bank account.
Visa & Residence
Engineer / Specialist
Most common for tech and finance professionals. Generally requires a relevant bachelor's degree (or 10+ years of relevant experience) and a role connected to that background. Sponsored by employer — eligibility depends on the specific job duties, not just credentials.
Intra-Company Transfer
For employees transferred from a foreign parent company. Typically valid 1–3 years, renewable.
Highly Skilled Professional
Points-based system. Eligible applicants may qualify for accelerated permanent residency — after 1 year for very high scorers, or 3 years for others meeting the threshold — depending on points and other requirements.
Residence Card (在留カード)
Required to carry at all times. Issued at major airports on arrival. Register your address at the local ward office within 14 days of moving in.
My Number (マイナンバー)
A 12-digit personal number assigned to every resident, used for tax, social insurance, and administrative procedures. Issued automatically upon ward office registration.
My Number Card
An optional physical ID card tied to your My Number — useful for identity verification, banking, and some administrative services, though not required to have the number itself assigned.
Renting a Home in Tokyo
Initial Costs
Budget roughly 4–6 months' rent upfront: a security deposit (敷金, often 1–2 months, partially refundable), key money (礼金, a non-refundable 0–2 months' gift to the landlord — increasingly negotiable or waived at the luxury end), one month's agent fee, a guarantor company fee, and fire insurance. See Tenant Screening for the paperwork side.
Company vs. Personal Lease
Many relocating executives have their employer sign the lease directly as a corporate contract (法人契約), with the executive and family as registered occupants. This can simplify guarantor requirements but shifts some tax and liability questions onto the employer — see Tax for how employer-provided housing is treated.
The Luxury Segment
At the ¥500K/mo and above level TokyoExpat focuses on, inventory is thinner and often moves before it's widely advertised — many of the best units are shown by relationship rather than found on portals. This is also where "buyer-side" advisory — someone working for the tenant, not the listing landlord — matters most.
Short-Term & Corporate Housing
For assignments under a year, or while you search for a longer-term home, serviced apartments are usually faster to secure than a standard lease. See our Short-Term Housing guide.
Yasuhiro's note
The rental process itself — screening, contracts, negotiation — is fairly mechanical once you know the steps. The harder question is usually which neighborhood and which building actually fit your commute, family and budget. That's where I spend most of my time with clients. See Long-Term Rental for the full step-by-step, or browse current listings directly.
Tenant Screening
Required Documents
Residence Card, passport, proof of income (offer letter, employment contract, or pay slips), and an emergency contact residing in Japan. For company-leased apartments, a basic company overview is also requested.
Guarantor Company
Nearly all foreign tenants now use a guarantor company (保証会社) instead of a personal Japanese guarantor. Fee is typically 50–100% of one month's rent, plus a small annual renewal.
Income Guideline
Gross monthly income of roughly 3x the rent is a common benchmark, though it varies by guarantor company and property.
Common Rejection Triggers
A visa with little time remaining, a very new employer or recent job change, or incomplete/mismatched paperwork. No Japan credit history alone is not a rejection reason — it's what guarantor companies are built for.
Timeline
Screening results typically come back in 1–3 business days once documents are complete. Budget 1–2 weeks from approval to move-in, and 3–4 weeks total if coordinating remotely from overseas.
Yasuhiro's note
Having your offer letter or income confirmation ready before you start viewing properties is the single biggest thing you can do to speed up approval — especially if you're not yet in Japan.
Banking
Expat-Friendly Banks
SMBC Trust (Prestia) and SBI Shinsei Bank are among the banks known for offering English-language service to new arrivals, including app and phone support in English. Both accept applications relatively soon after arrival.
Online-First Banks
Rakuten Bank, Sony Bank, and PayPay Bank are popular for their app-based account opening and lower fees, but their interfaces and support are primarily Japanese — workable if you're comfortable with a translation app, harder as a first bank.
What You Need
Residence Card, My Number Card, passport, and sometimes a Japanese phone number. Some banks also want proof of address (a utility bill or your lease) and an employer verification letter. Requirements — including any minimum residency period — vary by bank, so confirm directly before applying.
Branch vs. Online Application
Applying in person at a branch is generally faster for a first account and lets staff review your documents on the spot; online applications can take 1–2 weeks to arrive by mail (Japanese banks typically post your cash card rather than issue it on the spot, as an anti-fraud measure). Either way, expect the physical debit/cash card to arrive by mail, not handed over immediately.
International Transfers
International money transfers can be expensive — compare your bank's fees and exchange rates against specialist transfer services before moving large amounts.
Payments & Digital Wallets
Credit Cards
Widely accepted at hotels, department stores, and most restaurants in central Tokyo, though small local shops, some clinics, and older establishments can still be cash-only. Visa and Mastercard have the broadest acceptance; American Express and Diners Club less so outside major chains.
Contactless / Tap-to-Pay
Contactless (Visa payWave, Mastercard Contactless) has become standard at convenience stores, transit, and most retail since around 2020. Apple Pay and Google Pay work with most major foreign-issued cards for tap payments, separately from the Suica/PASMO mobile wallets below.
Suica & PASMO
Prepaid IC cards, originally for train and bus fare, now accepted at convenience stores, vending machines, and many retailers nationwide — the closest thing Japan has to a universal tap-to-pay card. Physical cards are sold at station machines; Suica also runs as a mobile wallet inside Apple Pay and on Android via the Suica app, letting you top up with a foreign credit card without a physical card at all.
PayPay & QR Payment Apps
PayPay is the dominant QR-code payment app in Japan, accepted even at small independent restaurants and market stalls that don't take cards. Setup generally requires a Japanese bank account or phone number, making it a second-month tool rather than a day-one one.
Cash
Still worth carrying, especially outside central Tokyo — some clinics, small izakaya, and shrine/temple offerings remain cash-only. Convenience store ATMs (7-Eleven, Lawson) reliably accept foreign-issued cards for withdrawals.
Phone, SIM & Wi-Fi
Major Carriers
NTT Docomo, au, and SoftBank are the three major carriers, with full Japanese contracts, physical stores, and the widest coverage. Contracts typically require a Residence Card and, for postpaid plans, a Japanese bank account or credit card.
Budget / MVNO Carriers
Rakuten Mobile, IIJmio, and other budget carriers (MVNOs) run on the major networks at lower cost, often with English-language sign-up. A good option once you have a Residence Card but before you've fully settled your banking.
Prepaid / Airport SIMs
Prepaid data SIMs and eSIMs (available at airport kiosks or online before arrival) are the fastest way to get connected on day one, without a long-term contract or Japanese bank account. Useful as a bridge until your permanent plan is set up.
Home Wi-Fi
Fiber internet (光回線) is the standard for home installation, but setup can take 2–4 weeks and often requires landlord permission for the installation work. Pocket Wi-Fi routers are a common bridge solution while you wait, or a permanent choice in smaller apartments.
Phase 02
During Your Stay
What keeps running in the background while you live and work in Tokyo — tax filing, health coverage, pension enrollment, getting around, and driving.
Tax
Income Tax Rates
National income tax is progressive with a top marginal rate of 45%, plus a 2.1% special reconstruction surtax. Local inhabitant tax adds roughly 10%. Combined marginal rates for high earners are generally in the mid-50s%.
Non-Permanent Resident
If you've maintained a domicile or residence in Japan for 5 years or less in aggregate during the preceding 10 years, and don't hold Japanese nationality, you're generally classified as a "non-permanent resident" for tax purposes. Certain foreign-source income may only be taxed to the extent it's paid in or remitted to Japan — but the rules depend on income type, timing, and residency history, and are not a simple "don't remit and it's untaxed" arrangement.
Does Length of Stay Determine Residency?
There is no single 5- or 10-year rule in Japan — different systems use different clocks. Tax residency: based on whether Japan is your domicile, or residence maintained for a year or more — not a day-count from arrival, and not the 183-day test used elsewhere. Non-permanent resident: once you're a tax resident, a separate rule classifies you as non-permanent if your aggregate domicile/residence in Japan over the preceding 10 years is 5 years or less. Immigration Permanent Residence: a different system, generally requiring 10 years of continuous stay (shorter routes exist for highly skilled professionals). Pension: a third, unrelated 10-year period governing old-age pension eligibility. These four don't share a timeline — being a tax resident from day one and a non-permanent resident for years afterward isn't a contradiction; they're different layers of classification.
Tax Treaties
Japan has treaties with most Western countries to avoid double taxation. The US–Japan treaty is particularly complex — seek specialist advice if you have US income.
Minimum Tax on Ultra-High Earners
A minimum-tax rule targets extremely high earners, primarily those with very large capital gains. It works by applying a flat rate to income above a special deduction. From 2027, that deduction falls from ¥330M to ¥165M and the rate rises from 22.5% to 30% — broadening the scope significantly. In practice, additional tax generally starts applying to taxpayers with total income in the hundreds of millions of yen, not ordinary salaried income.
Employer-Provided Housing
Company-arranged apartments can create a taxable benefit for the employee depending on how the lease and rent contribution are structured. If you're relocating on a corporate lease, review the tax treatment with your employer's accountant before finalizing terms — see our Renting in Japan guide for how corporate leases are typically set up.
Yasuhiro's note
As a USCPA with FP&A experience, I can help you ask the right questions and understand the financial implications of your Japan assignment — even if the final advice comes from a licensed tax accountant.
Health Insurance
Employee Insurance (健保)
Employees who meet eligibility requirements are generally enrolled in Employees' Health Insurance through their employer, covering the employee and dependents. Those outside employee insurance (e.g. self-employed) are typically covered by National Health Insurance instead.
Copay
Standard 30% of medical costs for working-age adults. Monthly out-of-pocket may be capped under the High-Cost Medical Expense System (高額療養費), subject to income, age, and other conditions.
English-speaking clinics
International clinics in Minato and Shibuya cater to expats with English-speaking staff. Costs can be higher than standard Japanese hospitals.
Pension
Enrollment
Employees who meet eligibility requirements are generally enrolled in Employees' Pension Insurance (厚生年金) through their employer. Residents outside employee coverage are generally enrolled in the National Pension (国民年金) instead.
Lump-Sum Withdrawal
If you leave Japan before becoming eligible for an old-age pension, you may be eligible for a partial refund of contributions — see Leaving Japan for the current rules.
Totalization Agreements
Japan has social security agreements with around two dozen countries, including the USA, UK, and Germany. These help coordinate pension eligibility and can prevent double coverage, but the covered programs and rules differ by country — worth checking before you arrive.
iDeCo, Japan DC Pension & Furusato Nozei
Corporate DC (企業型確定拠出年金)
Many larger employers, especially foreign-affiliated companies, offer a corporate defined-contribution plan as part of the benefits package. Contributions and investment choices are typically managed through the employer's plan administrator. See Leaving Japan for what happens to the balance when you leave.
iDeCo (個人型確定拠出年金)
A voluntary, individually-held defined-contribution pension. Eligibility and contribution limits depend on your employment status and whether you're also enrolled in a corporate DC plan. Contributions are tax-deductible, which is the main draw, but funds are generally locked until age 60 — worth weighing carefully given the average length of a Japan assignment.
Furusato Nozei (ふるさと納税)
A "hometown tax" program that lets residents redirect a portion of their local inhabitant tax to a municipality of their choice, in exchange for a thank-you gift (often local food or goods) worth roughly 30% of the donation. The net cost after the associated tax deduction is typically a flat ¥2,000, up to an income-dependent limit. Requires being a Japan tax resident and filing correctly — either via one-stop exception filing (for those who don't otherwise need to file a return) or through the annual tax return.
Yasuhiro's note
Furusato Nozei is one of the more painless tax-planning moves available to residents, but the contribution limit depends on your income and family situation for that specific year — calculate it (or have your accountant calculate it) before donating, since over-contributing simply becomes a non-deductible gift.
Driving License
International Driving Permit
An IDP issued under the Geneva Convention is generally valid for up to 1 year from your entry into Japan, carried alongside your original license. Validity depends on the issuing country and your Japan residency status.
Converting to a Japanese License
Whether you need a knowledge test, practical test, or both depends on the country/region that issued your original license, not just nationality. Some jurisdictions qualify for simplified conversion; others require full written and practical testing. Confirm current requirements with your local driving license center before assuming either path.
Practical Note
Allow 1–3 months for conversion where practical testing is required. Most central Tokyo executives don't own cars — parking runs ¥40K–¥80K/month in premium areas.
Taxis & Ride-Hailing
Uber in Japan
Uber operates in Tokyo, but unlike in most countries it dispatches licensed taxis rather than private drivers — Japan's regulations don't permit the private-driver model Uber runs elsewhere. Fares are metered taxi rates plus a small booking convenience, not the peer-to-peer pricing you may expect.
Grab
Grab does not operate in Japan. If you've used it elsewhere in Asia, the closest equivalents here are GO, Uber, DiDi, and S.RIDE — all of which dispatch licensed taxis, not private cars.
GO
The largest domestic taxi-hailing app, with the deepest coverage across Tokyo and the rest of Japan. Japanese-only in places, but usable with a translation app or the basic English toggle.
Hailing on the Street
Still entirely normal in central Tokyo — taxis are plentiful, metered, and reliable, if pricier than ride-hailing apps in other countries. A red light in the windshield display means available.
Car Ownership, Car-Sharing & Rental Cars
Why Most Executives Skip It
Central Tokyo's train network covers almost everywhere you'd need to go, and parking is both scarce and expensive (¥40K–¥80K/month in premium areas). Most relocating executives find they simply don't need a car day-to-day.
Ownership Costs
Beyond the purchase price, budget for a proof-of-parking certificate (車庫証明, required before registration), mandatory biennial inspection (車検, often ¥100K–¥200K depending on the car), weight tax, and mandatory + voluntary insurance — on top of monthly parking. It adds up quickly relative to the actual usage most residents get out of it.
Car-Sharing
Times Car Share and similar services place cars in parking lots throughout the city, bookable by the hour via app — a popular middle ground for residents who want occasional access without ownership costs.
Rental Cars
Standard international rental chains (Toyota Rent a Car, Nippon Rent-A-Car, Times Car Rental) operate throughout Tokyo, useful for weekend trips outside the city. An International Driving Permit or a converted Japanese license is required — see above.
Phase 03
Departure
Closing things out cleanly when your assignment ends — tax representation, and what happens to your pension and retirement accounts.
Leaving Japan: Tax, Pension & DC
Tax Administrator (納税管理人)
If you leave Japan while you still have Japanese tax filing obligations — particularly Japan-source income continuing after departure, such as rental income — you may need to appoint a tax administrator before you leave. Doing so lets your return stay on the normal Feb–Mar schedule instead of needing to be settled before departure.
Pension Lump-Sum (脱退一時金)
Available to foreign nationals who leave Japan before becoming eligible for an old-age pension (generally 10 years of combined coverage). Currently capped at 60 months (5 years) of contributions. Must generally be claimed within 2 years of no longer having a registered address in Japan. A flat 20.42% withholding tax applies to Employees' Pension Insurance lump-sum payments (a tax administrator can file for a partial refund); National Pension lump-sum payments are not subject to withholding. Applied for by mail after departure.
Corporate DC / iDeCo Lump-Sum
Stricter than the public pension. Generally requires: under 60, no ongoing DC/iDeCo enrollment, application within 6 months of losing eligibility, and — the key threshold — total contribution period of 5 years or less, or balance of ¥250,000 or less. Longer-tenure contributors above that balance typically can't withdraw as a lump sum.
Reform in progress — effective date not yet set
A June 2025 pension reform law will eventually raise the 60-month cap to 96 months (8 years) and restrict claims for anyone leaving with a valid re-entry permit. As of this writing, the government has not yet fixed the effective date (the law allows up to 4 years from promulgation). Some sources incorrectly cite April 2026 — only the current 5-year rule is in effect for now. Confirm the current rule at the time you apply.
Common Questions from Relocating Executives
FAQ
Do foreign executives pay Japanese tax on income earned outside Japan?
It depends on your residency classification. Most relocating executives are initially non-permanent residents, meaning certain foreign-source income may only be taxed to the extent it's paid into or remitted to Japan. See Tax for the full picture — the rules depend on income type and timing, so individual review is recommended.
Does the length of my stay determine my Japanese tax residency status?
There is no single 5- or 10-year rule — different systems use different clocks. Tax residency depends on whether Japan is your domicile, or a residence maintained for a year or more, not a simple day-count from arrival: you may be a tax resident from the day you arrive if your move establishes Japan as your domicile. Separately, "non-permanent resident" status (5 years or less within the past 10), immigration's Permanent Residence (generally 10 years), and the pension system's 10-year eligibility period are three distinct concepts on their own timelines. Being a tax resident from day one and a non-permanent resident for years afterward isn't a contradiction. See Tax for details.
Do I need a guarantor to rent an apartment in Tokyo as a foreigner?
Nearly all foreign tenants use a guarantor company (保証会社) instead of a personal Japanese guarantor. See Tenant Screening for required documents and typical timelines.
Can I get a refund of my pension contributions when I leave Japan?
If you leave Japan before becoming eligible for an old-age pension (generally 10 years of combined coverage), you can generally apply for a Lump-sum Withdrawal Payment within 2 years of departure. See Leaving Japan for current caps and an important note on pending reform.
Do I need a tax representative before leaving Japan?
If you leave Japan while you still have Japanese tax filing obligations — particularly ongoing Japan-source income such as rental income — you may need to appoint a tax administrator (納税管理人) before leaving. See Leaving Japan for details.
Is employer-provided housing taxable income in Japan?
It can be, depending on how the lease and any employee rent contribution are structured. See Tax and our Renting in Japan guide for how corporate leases are typically arranged.
How long does tenant screening take for expats in Tokyo?
Guarantor company results typically come back in 1–3 business days once your documents are complete. See Tenant Screening for a realistic end-to-end timeline.
How do I open a bank account in Japan as a foreigner?
You'll generally need your Residence Card, My Number Card, and passport, and applying in person at a branch is usually faster than online for a first account. See Banking for expat-friendly banks and what to bring.
Can I use my foreign credit card in Japan?
Yes, at most hotels, department stores, and central Tokyo restaurants, though smaller shops can still be cash-only. Suica or PASMO — Japan's transit IC cards — double as a near-universal tap-to-pay option and can be loaded straight into Apple Pay or Google Pay. See Payments & Digital Wallets.
Is Uber available in Tokyo? Does Grab work in Japan?
Uber operates in Tokyo but dispatches licensed taxis rather than private drivers, due to Japanese regulation. Grab does not operate in Japan at all — GO is the largest domestic equivalent. See Taxis & Ride-Hailing.
Do I need a car in Tokyo?
Most residents don't — the train network covers nearly everywhere, and parking runs ¥40K–¥80K/month in premium areas. Car-sharing services like Times Car Share cover occasional need without ownership costs. See Car Ownership, Car-Sharing & Rental Cars.
What is furusato nozei ("hometown tax")?
A program letting Japan tax residents redirect part of their local tax to a municipality of choice in exchange for a gift worth roughly 30% of the donation, at a net cost of about ¥2,000 up to an income-based limit. See iDeCo, Japan DC Pension & Furusato Nozei.
Official Sources
Disclaimer: This guide provides general information only and does not constitute legal, tax, or financial advice. Immigration rules, tax laws, and administrative procedures change frequently. TokyoExpat does not provide immigration or tax advice directly — where a situation calls for specialist guidance, we coordinate with qualified immigration lawyers, certified tax accountants (税理士), and other licensed professionals. Always confirm details with the relevant government body or a licensed professional before acting.
Content last reviewed against primary sources: August 2026.
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