Asia-Pacific · JPY
Japan
Reviewed 2026-06-21
Top income tax
45%
Self-employed SS
Yes
VAT
10%
Capital gains
20.32%
Exit tax
Conditional
Nomad visa
Yes
48
/ 100
Tax efficiency31
Ease to enter78
Ease to exit35
Cost of living85
Internet45
English25
Japan taxes residents on worldwide income with steeply progressive national rates up to 45 percent, a 2.1 percent reconstruction surtax, and a flat 10 percent local inhabitant tax on top. The self-employed must enroll in National Health Insurance and the National Pension, and a departure tax can apply to long-term residents with large financial portfolios who leave the country. A six-month digital nomad route and startup or business manager visas exist for founders, though high living costs and limited English usage outside major cities are practical hurdles.
Personal income tax
Income tax structureProgressive
Top income tax rate45%
Entry income tax rate5%
Top rate threshold$258,000
Taxation basisWorldwide
Local/state income taxYes
Social security
Self-employed social securityYes
Employee SS rate14.69%
Employer SS rate15%
Indirect & other taxes
VAT standard rate10%
Capital gains rate20.32%
Long-hold CGT exemptionNo
Wealth taxNo
Inheritance/gift taxYes
Inheritance top rate55%
Property taxNo
Exit & residency
Exit taxConditional
Exit tax triggerPermanent residents holding financial assets of JPY 100 million or more (about USD 645,000) at departure are taxed on unrealized gains at 15.315 percent
Exit tax residency lookback10 years
EU/EEA deferralNo
Days to trigger residency183 days
Corporate
Corporate income tax rate23.2%
WHT on dividends20.42%
CFC rulesYes
Incentives & special regimes
Special expat regimeNo
Immigration & setup
Digital nomad visaYes
DNV monthly income requirement$5,375
Entrepreneur visaYes
Ease of setup3 / 5
Lifestyle
Cost of living index38
Internet speed199 Mbps
English proficiencyLow
Civil liberties93
Sources
- PwC Worldwide Tax Summaries — Japan Individual Taxes on personal income
- PwC Worldwide Tax Summaries — Japan Corporate Taxes on corporate income and Other taxes (CIT and consumption tax)
- PwC Worldwide Tax Summaries — Japan Individual Other taxes (social security, inheritance, wealth)
- Ministry of Foreign Affairs of Japan — Designated Activities (Digital Nomad) visa
- KPMG — Japan Introduction of Exit Tax (financial-asset threshold and residence test)
Informational only. Nothing here is tax, legal, or financial advice. Tax rules change often and vary by personal circumstance. Verify every figure against an official source and a qualified adviser before acting. Figures are re-expressed from public sources and cited per country.