Frequently Asked Questions
Common questions about finances in Japan — answered in plain English.
Tax 税金 — 8 questions
Do I need to file a tax return in Japan?
Most full-time employees (正社員) do NOT need to file 確定申告 — your employer handles it via 年末調整. You DO need to file if you are a freelancer, have multiple employers, earned side income over ¥200,000, or want to claim certain deductions like medical expenses or ふるさと納税. Read the Tax Filing Guide
When is the tax filing deadline?
The 確定申告 filing period runs from February 16 to March 15 each year (for income earned in the previous calendar year). If the deadline falls on a weekend, it shifts to the next business day. Filing late incurs penalties including 延滞税 (late payment tax) and 加算税 (additional tax). See the full tax calendar
Can I file taxes in English?
Unfortunately, no — the official 確定申告 forms and the e-Tax system are in Japanese only. However, FinBuddy's Tax Filing Guide walks you through every field in English, and our Tax Checker tool helps you determine what you need to file. Try the Tax Checker
What tax deductions can I claim?
Common deductions include 基礎控除 (basic deduction, ¥480,000), 社会保険料控除 (social insurance), 医療費控除 (medical expenses over ¥100,000), 生命保険料控除 (life insurance premiums), and 寄附金控除 (donations including ふるさと納税). Freelancers can also deduct business expenses. Full deductions list
How does ふるさと納税 work?
ふるさと納税 (Furusato Nozei) lets you "donate" to regional municipalities and receive local specialty gifts in return. The donation amount (minus ¥2,000) is deducted from your resident tax the following year. Salaried employees with 5 or fewer donations can use the ワンストップ特例 to skip filing 確定申告. Learn more about ふるさと納税
What is 年末調整?
年末調整 (nenmatsu chōsei) is the year-end tax adjustment your employer performs in November/December. It reconciles your income tax withholdings for the year and handles most standard deductions. If your employer completes this, you typically do not need to file 確定申告. Understand your payslip
Do I need to pay taxes on overseas income?
It depends on your tax residency status. If you have been in Japan for 5+ years (permanent resident for tax purposes), you are taxed on worldwide income. If under 5 years (non-permanent resident), foreign-sourced income is only taxed if remitted to Japan. Non-residents are taxed only on Japan-sourced income. Learn about tax residency
What happens to my taxes if I leave Japan mid-year?
You must file a 準確定申告 (quasi-final return) before departing or appoint a 納税管理人 (tax agent) to handle it after you leave. Your employer will perform a special 年末調整 at your departure date. Resident tax (住民税) for the current year may still be owed after you leave. Leaving Japan tax checklist
Investment 投資 — 6 questions
What is NISA and should I open one?
NISA (Nippon Individual Savings Account) is a tax-free investment account available to all Japanese residents. Under the new NISA (2024+), you get two slots: つみたて投資枠 (¥1.2M/year for index funds) and 成長投資枠 (¥2.4M/year for stocks, ETFs, etc.) with a lifetime cap of ¥18M. Investment gains are permanently tax-free. Read the NISA Guide
What's the difference between NISA and iDeCo?
Both offer tax benefits, but they work differently. NISA provides tax-free investment gains with flexible withdrawals. iDeCo is a private pension — contributions are tax-deductible (reducing your income tax now), gains are tax-free, but you cannot withdraw until age 60. Most people benefit from using both. Compare NISA vs iDeCo
Which broker is best for foreigners?
SBI Securities and Rakuten Securities are the most popular online brokers in Japan, both offering low fees and wide fund selections. SBI has slightly better international fund options, while Rakuten integrates well with Rakuten Points. Both accept foreign residents with a residence card and マイナンバー. See broker comparison
Can I invest in US stocks from Japan?
Yes. Most major Japanese brokers (SBI, Rakuten, Monex) offer US stock trading. You can also buy US stocks within your NISA 成長投資枠 for tax-free gains. Be aware of the W-8BEN form for US dividend withholding tax (10% withheld at source by the US, reduced from 30% via the US-Japan tax treaty). Learn about investing from Japan
What happens to my NISA if I leave Japan?
When you lose Japanese residency, your NISA account is frozen — you cannot make new investments or reinvest dividends. Existing holdings remain but may be moved to a taxable account. If you return within 5 years, you can reopen your NISA. Rules vary by broker, so check before departing. NISA and leaving Japan
Are crypto gains taxed in Japan?
Yes — cryptocurrency gains are classified as 雑所得 (miscellaneous income) and taxed at your marginal income tax rate, which can be up to 55% (income tax + resident tax). This applies when you sell crypto for yen, trade one crypto for another, or use crypto to purchase goods. You must report gains via 確定申告. Crypto tax filing basics
Property 不動産 — 4 questions
Can foreigners buy property in Japan?
Yes — there are no legal restrictions on foreigners buying property in Japan, regardless of visa status or residency. You can buy land and buildings with full ownership rights. However, getting a mortgage as a non-resident or without permanent residency can be more difficult. Read the property buying guide
Can I get a mortgage without permanent residency?
It is possible but more limited. Some banks (notably SMBC Prestia, Shinsei Bank, and certain regional banks) offer mortgages to foreigners without PR, typically requiring a Japanese spouse, longer residency in Japan, or a higher down payment. フラット35 (Flat 35) is also an option regardless of PR status. Mortgage options for foreigners
Is it better to buy or rent in Japan?
It depends on how long you plan to stay and where you live. In Tokyo, buying often makes sense after 7-10 years due to high upfront costs (6-8% of purchase price). In other cities, the breakeven point can be shorter. Use our Buy vs Rent calculator to model your specific situation. Try the Buy vs Rent calculator
What is 住宅ローン控除?
住宅ローン控除 (Housing Loan Tax Deduction) is a tax credit that reduces your income tax based on your outstanding mortgage balance — typically 0.7% of the remaining balance for up to 13 years on new homes. To claim it, you must file 確定申告 in the first year; after that, 年末調整 handles it automatically. Housing loan deduction details
Pension 年金 — 4 questions
Can I get my pension money back when I leave Japan?
Yes — if you contributed to the Japanese pension system for at least 6 months and leave Japan permanently, you can claim the 脱退一時金 (Lump-Sum Withdrawal Payment). You must apply within 2 years of departure. The refund is partial, covering up to 5 years of contributions (recently expanded from 3 years). Pension refund guide
How much pension refund will I get?
The refund amount depends on your contribution period and the type of pension you paid. For 厚生年金, it is based on your average salary and months of contribution. For 国民年金, it is a fixed amount per month contributed. Use our calculator for an estimate — but note that a 20.42% income tax is withheld from the refund. Calculate your pension refund
What are totalization agreements?
Japan has 社会保障協定 (Social Security Agreements) with about 23 countries (including the US, UK, Germany, Australia, and Korea). These agreements prevent double pension contributions and allow you to combine contribution periods from both countries when qualifying for pension benefits. Check your country's agreement
Should I pay 国民年金 voluntarily?
If you plan to stay in Japan long-term (10+ years total contributions), paying 国民年金 earns you a retirement pension. If you are leaving soon, you can still claim the 脱退一時金 refund for contributions made. Students and low-income earners can apply for exemptions (免除) that still count toward qualification periods. Understand your pension options
Insurance 保険 — 4 questions
What health insurance do I need?
All residents of Japan must have health insurance. If you are employed, your company enrolls you in 社会保険 (employer-based insurance). If you are self-employed, a freelancer, or between jobs, you must enroll in 国民健康保険 (National Health Insurance) at your local city hall. Both cover 70% of medical costs. Health insurance explained
Do I need life insurance in Japan?
Life insurance (生命保険) is not legally required, but it is worth considering if you have dependents in Japan. Premiums are partially tax-deductible (up to ¥40,000 per category under 生命保険料控除). Many employers offer group life insurance at discounted rates — check before buying an individual policy. Compare insurance options
What is 高額療養費制度?
高額療養費制度 (High-Cost Medical Expense System) caps your monthly out-of-pocket medical expenses. The threshold varies by income — for example, around ¥80,000/month for typical earners. Once you exceed it, health insurance covers the rest. You can apply for a 限度額適用認定証 in advance to avoid paying upfront. How the system works
Do I need earthquake insurance?
Earthquake insurance (地震保険) is not mandatory but strongly recommended — standard fire insurance does NOT cover earthquake damage. It is government-backed, relatively affordable, and premiums are partially tax-deductible. Coverage is limited to 50% of your fire insurance sum, with caps of ¥50M for buildings and ¥10M for contents. Insurance recommendations
Banking 銀行 — 4 questions
Which bank is best for foreigners?
SMBC Prestia (formerly Citibank Japan) offers English-language support and is popular with foreigners. Shinsei Bank has no ATM fees and an English-capable app. For everyday banking, most people use a major bank (MUFG, SMBC, Mizuho) alongside a digital bank like Sony Bank or Rakuten Bank. Browse banking guides
How do I send money abroad cheaply?
Wise (formerly TransferWise) is the most popular option for international remittances from Japan, offering mid-market exchange rates and low fees. Revolut and Sony Bank DEBIT are also good options. Traditional bank wire transfers (海外送金) typically charge ¥3,000-6,000 in fees plus poor exchange rates. Remittance guide
Can foreigners get credit cards in Japan?
Yes, but approval can be difficult without a credit history in Japan. Rakuten Card and EPOS Card are known for higher approval rates for foreigners. Having a full-time job and a Japanese bank account significantly improves your chances. Expect to wait 6-12 months after arriving before applying. Credit card tips
What is マイナンバー?
マイナンバー (My Number) is Japan's 12-digit taxpayer identification number, assigned to all residents including foreigners. You receive it when you register your address at city hall. It is required for tax filing, opening brokerage accounts, employment paperwork, and various government procedures. Never share it unnecessarily. See the glossary
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