Moving to Japan from the US

US Tax Obligations After You Move

The US taxes citizens and green card holders on worldwide income regardless of where they live. Moving to Japan does not change this. You will file both a US federal return (Form 1040) and a Japanese tax return (kakutei shinkoku) every year you remain a US person.

The US-Japan Tax Treaty

The treaty prevents double taxation on most income types. You'll use Foreign Tax Credits (Form 1116) or the Foreign Earned Income Exclusion (Form 2555) to offset Japanese taxes against your US liability. Japan's national income tax is progressive up to 45% on income above JPY 40 million, plus a 10% inhabitant tax (juuminzei) on most income. For middle and upper incomes, Japanese taxes generally exceed US rates, so Foreign Tax Credits eliminate your additional US liability. But you must still file both returns.

Japanese Tax Residency Categories

Japan classifies tax residents into three categories based on how long you've been in Japan. "Non-permanent residents" (those who have lived in Japan for 5 years or fewer within the past 10 years) are taxed only on Japanese-source income and foreign-source income remitted to Japan. "Permanent residents" (in Japan for more than 5 years of the past 10) are taxed on worldwide income. This distinction matters for Americans with significant US investment income: during your first five years, unrepatriated US investment gains may not be taxable by Japan. Plan your first five years carefully with a cross-border tax advisor.

FBAR and FATCA Reporting

If your combined balances in Japanese bank accounts exceed $10,000 at any point during the year, you must file FinCEN Form 114 (FBAR). FATCA requires Form 8938 if your foreign financial assets exceed $200,000 (single filers abroad) at year-end. Japanese financial institutions report US persons' accounts to the IRS under FATCA's intergovernmental agreement. Penalties for missing FBAR filings start at $10,000 per account per year.

Japanese Pension (Nenkin)

All residents between 20 and 59 are required to contribute to the Japanese pension system. Employees contribute to kosei nenkin (employees' pension), while self-employed and others pay into kokumin nenkin (national pension). The US-Japan Social Security totalization agreement prevents double contributions: if your US employer sends you to Japan on assignment, you may continue paying into US Social Security only. If you're hired locally, you'll pay into the Japanese system. Work credits from both countries can be combined to meet eligibility requirements for benefits from either system.

State Tax Returns

File a final part-year resident return for your departure year. Document your departure and sever ties to your state of residence.

Residence Card and Registration

Zairyu Card (Residence Card)

When you arrive at a major Japanese airport (Narita, Haneda, Kansai, Chubu) on a work or long-stay visa, you'll receive a zairyu card (residence card) at immigration. This credit-card-sized ID contains your name, photo, visa type, and period of stay. It has an IC chip with your fingerprint data. You must carry this card at all times. Police can ask to see it, and failure to produce it can result in a fine of up to JPY 200,000. The card is also your proof of address once you complete your municipal registration.

Municipal Registration (Juuminhyo)

Within 14 days of moving into your address, register at your local ward office (kuyakusho in cities, yakuba in towns). Bring your zairyu card and passport. The ward office records your address on the back of your zairyu card and enters you into the resident register (juuminhyo). This registration is essential for opening a bank account, enrolling in health insurance, getting a phone contract, and receiving official correspondence. If you move to a different address, you must transfer your registration within 14 days.

My Number (Individual Number)

After registering your address, you'll be assigned a My Number (12-digit individual identification number). A notification card arrives by mail in 2-3 weeks. You can later apply for a My Number Card (physical ID card with photo) at the ward office. The My Number is used for tax filing, social insurance, and some banking procedures. It's not as universally required as the US Social Security Number, but you'll need it for employment and tax purposes.

SOFA Status (Military)

If you're affiliated with the US military in Japan under the Status of Forces Agreement (SOFA), your situation is fundamentally different. SOFA personnel are exempt from Japanese immigration requirements (no zairyu card), exempt from Japanese taxes on US military pay, and exempt from Japanese pension and health insurance contributions (covered by military benefits). However, SOFA status ends when your military assignment ends. If you want to stay in Japan after separation, you must transition to a standard visa and comply with all civilian requirements. The transition window is typically 30-90 days. Plan ahead, because changing from SOFA to civilian status involves establishing an entirely new legal identity within the Japanese system.

Healthcare: National Health Insurance

Japan's healthcare system is universal. All residents are required to enroll in either employer-provided health insurance (shakai hoken) or National Health Insurance (kokumin kenko hoken, NHI). There is no option to go uninsured.

Employer-Provided Insurance (Shakai Hoken)

If you're employed full-time by a Japanese company, you'll be automatically enrolled in shakai hoken. Premiums are approximately 10% of your salary, split between you and your employer. Coverage includes medical, dental, and prescription drugs with a 30% copay (you pay 30%, insurance pays 70%). Dependents (non-working spouse, children) are covered at no additional premium. The coverage is comprehensive: there are no networks, no pre-authorizations, and no annual caps on covered services.

National Health Insurance (NHI)

If you're self-employed, freelancing, or between jobs, you enroll in NHI at your ward office. Premiums are calculated based on your previous year's income and municipality of residence, ranging from JPY 15,000-80,000/month. Coverage is identical to shakai hoken: 30% copay for all services. NHI does not cover dependents for free; each family member has their own premium.

What's Covered

Japanese health insurance covers doctor visits, hospital stays, surgery, prescription drugs, dental care (basic), mental health, maternity, and rehabilitation. Cosmetic procedures, advanced dental work (crowns, implants), and some cutting-edge treatments are not covered. The 30% copay applies to almost everything. There's a monthly out-of-pocket cap (kougaku ryouyouhi) that limits your total copay based on income: for most working-age residents, the cap is JPY 80,000-170,000/month. Above that, insurance covers 100%.

Quality of Care

Japanese healthcare is high-quality, technologically advanced, and accessible. Wait times for specialist appointments are short (days to weeks, not months). Japan has more MRI and CT machines per capita than any other country. Hospital stays are longer than in the US (the culture favors conservative recovery). Doctors may not speak English, especially outside major cities. In Tokyo and Osaka, international clinics with English-speaking staff exist but charge higher fees (often not covered by NHI). For NHI-covered care, you go to any clinic or hospital. There are no network restrictions.

Prescription Drugs

Prescriptions are dispensed at pharmacies (yakkyoku), which are separate from clinics and hospitals. You receive a prescription from your doctor and take it to any pharmacy. The 30% copay applies. Drug prices in Japan are government-regulated and generally lower than US prices. Most common medications are available, but some US-specific brands may have different names or equivalents. Bring a translated list of your current medications when you establish care with a Japanese doctor.

US Medicare

US Medicare does not cover care in Japan. If you're enrolled, maintain Part A for potential return. Consider whether Part B premiums are worth maintaining based on your long-term plans. Japanese healthcare costs are low enough that most Americans find the system more than adequate.

Visa Pathways for Americans

Work Visa (Shuro Visa)

The most common pathway for Americans moving to Japan. You need a job offer from a Japanese company (or a Japanese branch of a foreign company). Your employer submits a Certificate of Eligibility (COE) application to the regional immigration bureau. Processing takes 1-3 months. With the COE, you apply for a work visa at a Japanese consulate in the US. There are multiple work visa categories: Engineer/Specialist in Humanities/International Services (the most common for office workers), Intra-company Transferee, Instructor, and others. Each has specific qualification requirements (typically a bachelor's degree or 10 years of experience in the field).

Highly Skilled Professional Visa

Japan's points-based system for high-earning or highly qualified professionals. Points are awarded for academic background, work experience, annual salary, age, and other factors. Scoring 70+ points earns you the HSP visa with benefits including a faster path to permanent residency (3 years instead of 10), the ability to bring parents to Japan, and permission for your spouse to work. Scoring 80+ points qualifies you for permanent residency after just 1 year. Americans with a master's degree, 5+ years of experience, and a salary above JPY 10 million typically score well.

Spouse of Japanese National

If your spouse is Japanese, you qualify for a spouse visa with unrestricted work permission. The application requires your marriage certificate (translated and apostilled), your spouse's family register (koseki tohon), and proof of your relationship's authenticity. Processing takes 1-3 months. This visa is renewed every 1-3 years.

Student Visa

For enrollment in a Japanese language school, university, or vocational school. Allows part-time work (up to 28 hours/week with permission). Many Americans use language school enrollment as a stepping stone: study Japanese for 1-2 years, then transition to a work visa. Language schools cost JPY 700,000-1,000,000/year in tuition.

Startup Visa

Available in designated National Strategic Special Zones (including Tokyo, Osaka, Fukuoka, and others). Allows entrepreneurs to enter Japan for 6-12 months to establish a business. After establishing the company and meeting capital/employment requirements, you transition to a Business Manager visa. The Business Manager visa requires a registered office in Japan, capital investment of at least JPY 5 million (approximately $33,000), and a viable business plan.

Permanent Residency

Standard path requires 10 consecutive years of residence in Japan, with at least 5 years on a work visa. The Highly Skilled Professional route shortens this to 1-3 years. Permanent residency has no expiration (but the re-entry permit does). Japan does not allow dual citizenship for adults who acquired Japanese citizenship by naturalization. Permanent residency gives you the right to live and work without restrictions while keeping your US passport.

Housing and Daily Life

Finding an Apartment

Japanese apartment hunting is unlike anything in the US. Real estate agents (fudousan) handle nearly all rental transactions. You visit an agency, describe what you want, and they show you listings. Many agencies are hesitant to work with foreigners due to language barriers and landlord preferences. Agencies that specialize in foreign tenants include GaijinPot Apartments, Real Estate Japan, and Sakura House (furnished). In Tokyo, expect to pay JPY 80,000-150,000/month (approximately $530-1,000) for a 1K or 1LDK apartment (one room plus kitchen) in a central ward.

Move-in Costs

Japanese rental move-in costs are notoriously high. You'll typically pay: first month's rent, one month's security deposit (shikikin), one month's "key money" (reikin, a non-refundable gift to the landlord), one month's agency fee, fire insurance (JPY 15,000-20,000/year), and a guarantor company fee (50-100% of one month's rent). Total move-in costs: 4-6 months' rent upfront. Key money is declining in competitive markets but is still common. A guarantor company (hoshounin kaisha) replaces the traditional Japanese guarantor (a Japanese person who co-signs your lease). Almost all foreigners use a guarantor company.

Apartment Size

Japanese apartments are small by American standards. A 25-square-meter (270 sq ft) 1K apartment is standard for a single person. A family apartment (2LDK or 3LDK) might be 60-80 square meters (650-860 sq ft). You will downsize. Most apartments come without furniture, and some don't include light fixtures, curtain rods, or even a stove (gas ranges are often tenant-provided). Measure everything before buying furniture. Japanese furniture stores (Nitori, IKEA Japan, Muji) sell space-efficient items designed for these dimensions.

Language Barrier

This is the single biggest daily challenge for Americans in Japan. English proficiency among the general public is low despite mandatory English education in schools. Signs, menus, government forms, utility bills, and most correspondence are in Japanese. Many ward offices and hospitals have limited or no English support. Google Translate with camera mode helps for reading kanji on signs and documents. For spoken Japanese, you'll need to invest seriously in language learning. Budget for Japanese classes (JPY 5,000-15,000/month for group lessons) and expect 18-24 months to reach conversational proficiency. Basic survival Japanese (greetings, numbers, directions, ordering food) can be learned in 2-3 months.

Banking

Open a bank account at your local branch of a major bank (MUFG, SMBC, Mizuho) or Japan Post Bank (Yuucho Ginko). Japan Post Bank has the most ATMs nationwide and the simplest account opening process for foreigners. You need your zairyu card, My Number notification, and your inkan or signature (some banks accept signatures, others require an inkan, a personal seal). Online banking is available but most Japanese banks have limited English interfaces. FATCA applies: your Japanese accounts will be reported to the IRS.

Cash Society

Japan is still heavily cash-based despite the growth of electronic payments. Many small restaurants, shops, and clinics are cash-only. ATMs at convenience stores (7-Eleven, Lawson, FamilyMart) accept international cards and are available 24/7. Always carry JPY 10,000-20,000 in cash. Contactless payments (Suica, Pasmo, PayPay) are increasingly accepted for transit and chain stores, but cash remains king at independent establishments.

Cultural Adjustment

Social Norms

Japan's social norms are highly codified and often invisible to newcomers. Silence on public transit. Removing shoes before entering homes (and many businesses). Not eating while walking. Separating trash into 5-10 categories. Bowing as greeting. Pouring drinks for others, never for yourself. These aren't optional etiquette tips. They're the baseline expectation. Violating them won't get you arrested, but it marks you as someone who hasn't bothered to learn. Most Japanese people are gracious about foreigner mistakes, but making an effort to follow the norms earns significant goodwill.

Work Culture

If you're working at a Japanese company (as opposed to a foreign company in Japan), the work culture is substantially different from the US. Hierarchy matters. Decisions are made by consensus (nemawashi), which means things move slowly. After-work drinking with colleagues (nomikai) is semi-mandatory. Overtime is common. The "lifetime employment" model is weakening but still influences expectations about job-hopping (viewed negatively). International companies operating in Japan tend to have a hybrid culture. If you have a choice, clarify the company culture during interviews.

Isolation

Japan can be isolating for Americans. The language barrier limits social connections. Japanese friendships develop slowly and through repeated, structured interaction (work, hobbies, children's school). The gaijin (foreigner) experience includes both genuine warmth and a persistent sense of being an outsider. Joining a community (sports team, hobby group, volunteer organization, language exchange) is the most effective way to build a social network. Tokyo, Osaka, and other major cities have active English-speaking communities, but relying solely on the expat bubble limits your experience.

Natural Disasters

Japan experiences earthquakes regularly. Most are minor. Major earthquakes (magnitude 7+) occur every few years. Prepare an emergency kit (water, food, flashlight, first-aid, copy of important documents) and know your nearest evacuation point (hinanjo). Your ward office provides disaster preparedness information. Buildings are constructed to earthquake-resistant standards (among the strictest in the world), so structural collapse is rare in modern buildings. Typhoons affect Japan from June through October, particularly in the south and along the Pacific coast. Flooding and landslides are the main typhoon risks.

Four Seasons Culture

Japan has a deep cultural relationship with its four seasons. Food menus change seasonally. Department stores redecorate monthly. Conversations about "it's gotten cold, hasn't it?" are social lubricant, not small talk. Cherry blossom season (late March-early April) is genuinely as beautiful and culturally significant as advertised. Understanding and appreciating seasonal changes will help you connect with Japanese culture and people.

Healthcare Culture

Japanese patients tend to be more deferential to doctors than Americans are. Asking many questions or seeking second opinions is less common. Doctors may prescribe more medications than you're used to (Japanese medicine favors symptom-specific prescriptions). If you prefer the American approach of asking questions and being an active participant in your care, communicate that clearly. International clinics in major cities are accustomed to this style.