Leaving Japan? Your Complete Financial Exit Checklist

The 3-month exit countdown 退出タイムライン

Leaving Japan is not as simple as booking a flight and packing your bags. There is a surprising amount of financial paperwork to complete before you go — and some of it has strict deadlines. Trying to handle everything from overseas after you leave is exponentially harder, so give yourself at least 3 months.

Below is a practical countdown timeline. Adjust the dates based on your actual departure date, but the sequence is what matters most.

Tax obligations when leaving Japan 出国時の税金

Taxes are the most complicated part of leaving Japan. You have obligations for both income tax (所得税) and resident tax (住民税), and they follow completely different rules. Failing to handle them properly can result in penalties, interest charges, or even problems if you want to return to Japan in the future.

Appointing a 納税管理人 (tax representative)

If you leave Japan before filing your final 確定申告, you must appoint a 納税管理人 — a tax representative who handles your tax matters from Japan on your behalf. This person receives tax notices, files returns, pays taxes, and receives refunds for you. They can be anyone who is a resident of Japan: a friend, a former colleague, your employer, or a professional 税理士 (tax accountant).

How to register:

1. Obtain the 納税管理人の届出書 form from your local tax office (税務署) or download it from the NTA website.
2. Fill in your details, your 納税管理人's details, and the date you are leaving Japan.
3. Submit the form to your jurisdictional tax office before you leave Japan. There is no fee.
4. For 住民税 purposes, you also need to register a 納税管理人 separately at your ward/city office (区役所/市役所), as 住民税 is administered by local government.

Filing your final year 確定申告

You have two options for your final income tax return:

• ● Option A: File before you leave. If you know your total income for the year, you can file an early 確定申告 at any time before departure. Your employer should provide a 源泉徴収票 upon termination. This is the cleanest approach.
• ● Option B: 納税管理人 files after you leave. If you are leaving mid-year and cannot finalize your income figures yet, your 納税管理人 files the return during the normal filing period (February 16 – March 15 of the following year). Send them all necessary documents before you leave.

If you were a salaried employee and your employer performed a final 年末調整 (year-end adjustment) or a mid-year settlement when you resigned, you may not need to file 確定申告 at all. Check with your employer whether they handled the final tax reconciliation.

住民税 (resident tax) — the surprise bill

住民税 catches many departing foreigners off guard because of how it works: it is based on your income from the previous year, but it is billed and collected in the current year (June through May). This one-year lag means you can owe 住民税 even after you have left Japan.

The January 1 rule:

住民税 is assessed based on where you are registered as a resident on January 1 of each year. If you are living in Japan on January 1, 2026, you owe 住民税 for the 2025 tax year — and that bill arrives in June 2026. Even if you leave Japan in February 2026, you still owe the full year's 住民税.

If you were an employee, your employer may deduct remaining 住民税 from your final paycheck in a lump sum (一括徴収). Ask your HR department about this — it is the easiest way to settle the balance. If you are self-employed or your employer cannot do this, you will need to pay via your 納税管理人 or at the ward office before departure.

Pension refund (脱退一時金) だったいいちじきん

If you paid into the Japanese pension system (国民年金 or 厚生年金) and are leaving Japan permanently, you may be eligible for a 脱退一時金 (lump-sum withdrawal payment). This is a partial refund of the pension premiums you paid during your time in Japan. It is not a full refund — think of it as returning a portion of your contributions since you will not be collecting a Japanese pension.

Eligibility requirements

To qualify for 脱退一時金, you must meet all of the following conditions:

• ● You are not a Japanese national
• ● You have paid pension premiums for at least 6 months
• ● You do not have an address registered in Japan (i.e., you have already submitted 転出届 and left)
• ● You have never received a Japanese pension (including disability pension)
• ● You apply within 2 years of losing your address in Japan (i.e., within 2 years of leaving)

How much will you get?

The refund amount depends on which pension system you were enrolled in and how long you contributed:

国民年金 (National Pension) — for self-employed, freelancers, and students:

The refund is calculated based on a fixed table that increases with the number of months contributed. For example, with 36 months of contributions at the current premium rate of approximately ¥16,980/month, you would receive roughly ¥300,000-¥500,000 (the exact amount depends on the year's reference amount set by the pension service).

厚生年金 (Employees' Pension) — for company employees:

The calculation is more complex because contributions are based on your salary (標準報酬月額). Higher earners get a larger refund. The formula is: average standard monthly remuneration x a coefficient based on months contributed. For a typical salaried employee earning ¥350,000/month who contributed for 3-5 years, the refund can range from ¥500,000 to over ¥1,000,000.

Tax withholding on the refund — and how to get it back

Here is the part many people miss: when you receive the 脱退一時金, 20.42% is automatically withheld as income tax (20% income tax + 0.42% reconstruction surtax). This withholding is taken before the money reaches your bank account.

However, you can reclaim most or all of this tax by filing a tax return. This is where your 納税管理人 becomes essential:

1. Before leaving Japan, register a 納税管理人 at your tax office.
2. After you receive the 脱退一時金 (typically 3-6 months after applying), your 納税管理人 files a 確定申告 on your behalf as a non-resident.
3. Since the 脱退一時金 is often your only Japan-source income for that year, you typically qualify for the basic deduction (基礎控除), which means the effective tax on the refund is zero or very low.
4. The over-withheld tax is refunded to your 納税管理人's designated bank account, who then forwards it to you.

How to apply

1. Leave Japan and submit 転出届 — You cannot apply while you still have an address in Japan.
2. Obtain the application form — Download the 脱退一時金裁定請求書 from the Japan Pension Service (日本年金機構) website. It is available in English.
3. Gather documents: passport copy, proof you have left Japan (proof of deregistration or a stamp from immigration), bank account details (your overseas bank), and your pension book (年金手帳) or basic pension number (基礎年金番号).
4. Mail the application to the Japan Pension Service from overseas.
5. Wait 3-6 months — Processing times vary. The payment is deposited into your overseas bank account (minus the 20.42% withholding).

Deadline: You must apply within 2 years of leaving Japan. Do not procrastinate on this — set a calendar reminder.

NISA and investment accounts NISA・証券口座

If you have a NISA account (新NISA), a 特定口座 (specified account), or any other brokerage account in Japan, you need to take action before leaving. The rules differ significantly depending on the account type.

NISA account: freeze or close

NISA accounts are only available to Japanese tax residents. When you leave Japan, you lose your tax residency and therefore your NISA eligibility. You have two options:

• ●
  Option 1: Freeze the account (継続適用届出書). You can submit a 海外転出届 (overseas transfer notification) to your brokerage and keep your NISA holdings in a special "frozen" state. You cannot make new purchases, but your existing investments remain in the account and continue to grow tax-free — for up to 5 years from the year you leave. If you return to Japan within 5 years, you can re-activate the account. If you do not return within 5 years, the holdings are automatically moved to a taxable account (特定口座 or 一般口座).
• ●
  Option 2: Sell everything and close the account. If you do not plan to return to Japan, or if you need the cash, you can sell all holdings before leaving and close the NISA account. Gains realized while you are still a tax resident are tax-free under NISA rules.

特定口座 and 一般口座 (taxable brokerage accounts)

Non-NISA brokerage accounts face similar restrictions. Most Japanese brokerages do not allow non-residents to maintain accounts. When you notify them of your overseas move, they will typically require you to either:

• ● Sell all holdings and close the account, or
• ● Transfer holdings to a 一般口座 (general account) with limited functionality — no new purchases, sell-only mode

If you sell stocks/investments while still a tax resident, any gains in a 特定口座 (源泉徴収あり) are automatically taxed at 20.315% — no filing needed. If you have a 一般口座 or 特定口座 (源泉徴収なし), you will need to report gains in your final 確定申告.

iDeCo (個人型確定拠出年金)

iDeCo is a defined-contribution pension, not a regular investment account. When you leave Japan, you cannot withdraw the funds early — they are locked until age 60, regardless of your residency status. You will stop making contributions, and the account enters a dormant state. The funds continue to be invested according to your existing allocation.

When you eventually reach age 60, you can claim the iDeCo payout. As a non-resident, this will be treated as Japan-source retirement income (退職所得) and taxed accordingly. Your 納税管理人 can handle the tax filing at that time. Note that management fees (typically ¥170-600/month) continue to be deducted from your iDeCo balance even while dormant.

Insurance cancellation 保険の解約

You will need to cancel or adjust several types of insurance when leaving Japan. Here is what to handle:

Health insurance (健康保険)

• ●
  国民健康保険 (NHI): If you are on National Health Insurance, it is automatically cancelled when you submit your 転出届 at the ward office. Return your insurance card at the same time. If you have overpaid premiums (e.g., you paid a full year but are leaving mid-year), you will receive a refund — make sure to provide a bank account for this.
• ●
  社会保険 (company health insurance): If you are covered through your employer, coverage ends on your last day of employment. Your employer handles the cancellation. Make sure you understand the exact end date — you do not want a gap in coverage before your departure.

Other insurance to cancel

• ● Rental insurance (火災保険/家財保険): Cancel when you terminate your lease. Some policies offer partial refunds for unused periods.
• ● Life insurance (生命保険): You can either cancel and receive the surrender value (解約返戻金) or keep the policy active from overseas if the insurer allows it. Some Japanese life insurance policies have favorable terms worth maintaining.
• ● Car insurance (自動車保険): Cancel when you sell or export your car. Ask about a 中断証明書 (suspension certificate) — it preserves your no-claims discount for up to 10 years, useful if you return to Japan and buy a car again.
• ● Bicycle insurance (自転車保険): Cancel — it is mandatory in many prefectures but only for residents.

Bank accounts 銀行口座

The question everyone asks: "Should I close my Japanese bank accounts?" The answer is nuanced. Most Japanese banks technically require account holders to be residents, but enforcement varies widely. Here is the practical guidance:

Keep at least one account

We strongly recommend keeping at least one Japanese bank account open after you leave, for the following reasons:

• ● Pension refund deposit: The 脱退一時金 can be deposited into a Japanese bank account. While overseas bank transfers are also possible, having a Japanese account simplifies the process and avoids international wire fees.
• ● Tax refunds: If your 納税管理人 files a tax return and you are owed a refund, the NTA deposits it into a Japanese bank account.
• ● 住民税 payments: Remaining 住民税 installments can be auto-debited from a Japanese bank account.
• ● Future visits: If you plan to visit Japan again, having a Japanese bank account with a debit card is incredibly convenient for ATM withdrawals and cashless payments.

Accounts to close

Close any accounts you do not need. Dormant accounts with no activity for 10+ years can be seized by the government under the 休眠預金等活用法 (Dormant Deposits Act). To close an account, visit the branch in person with your ID, bank card, and passbook (通帳). Some banks allow closure by mail. Withdraw or transfer all remaining funds first.

Credit cards: Most Japanese credit cards require a Japanese address and bank account for billing. Cancel cards you no longer need. Some cards (especially from banks like Sony or SMBC) can be maintained from overseas if you keep the linked bank account open — check with each issuer.

Sending money home 海外送金

Before or after leaving Japan, you will likely want to transfer your savings to your home country bank account. There are several ways to do this, and the cost difference between methods can be significant — especially for large amounts.

Transfer methods compared

Cost example: Sending ¥3,000,000 home via a typical bank wire with a 2% exchange rate markup costs you approximately ¥60,000 in hidden fees + ¥5,000 wire fee = ¥65,000 total. The same transfer via Wise costs approximately ¥15,000-30,000. On large transfers, the savings from using Wise or a similar service can be substantial.

Reporting requirements for large transfers

Do not try to avoid the ¥1M reporting threshold by splitting your transfer into smaller amounts. This is called "structuring" and can trigger anti-money laundering (AML) flags, making your life significantly harder. Large transfers of legitimate savings are completely legal and normal — just transfer the full amount and answer any questions honestly.

Tip: If you are transferring very large sums (¥10M+), consider making the transfer before you leave Japan. Some banks and transfer services require Japanese residency verification for large outgoing transfers, and processing from overseas can be more difficult.

Frequently asked questions よくある質問