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 ^[1]. 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 ^[2]. You will use Foreign Tax Credits (Form 1116) or the Foreign Earned Income Exclusion (Form 2555) to offset Japanese taxes against your US liability ^[3]. Japan's national income tax is progressive, plus a local 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 have been in Japan ^[4]. "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) ^[5]. FATCA requires Form 8938 if your foreign financial assets exceed $200,000 (single filers abroad) at year-end ^[6]. Japanese financial institutions report US persons' accounts to the IRS under FATCA's intergovernmental agreement ^[6].

Japanese Pension (Nenkin).

All residents between 20 and 59 are required to contribute to the Japanese pension system ^[7]. 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 ^[8]. If your US employer sends you to Japan on assignment, you may continue paying into US Social Security only. If you are hired locally, you 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.

Visa Pathways for Americans

Americans can enter Japan for short stays of up to 90 days without a visa under the bilateral visa-exemption arrangement ^[1]. For any stay involving work or residence beyond the visa-free period, you need a visa issued by a Japanese embassy or consulate in the US before arrival ^[1].

Work Visa (Engineer/Specialist in Humanities/International Services).

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 ^[2]. With the COE, you apply for a work visa at a Japanese consulate in the US.

Highly Skilled Professional Visa.

Japan's points-based system for high-earning or highly qualified professionals ^[3]. Points are awarded for academic background, work experience, annual salary, age, and other factors. Scoring 70 or more points earns you the HSP visa with benefits including a faster path to permanent residency (3 years instead of 10) and permission for your spouse to work ^[3]. Scoring 80 or more points qualifies you for permanent residency after just 1 year ^[3].

Spouse of Japanese National.

If your spouse is Japanese, you qualify for a spouse-of-Japanese-national residence status. The application requires your marriage certificate (translated and apostilled), your spouse's family register (koseki tohon), and proof of your relationship.

Student Visa.

For enrollment in a Japanese language school, university, or vocational school. Allows part-time work (up to 28 hours per week with permission) ^[2]. Some Americans use language school enrollment as a stepping stone, then transition to a work visa.

Startup Visa.

Available in designated National Strategic Special Zones (including Tokyo, Osaka, and Fukuoka). Allows entrepreneurs to enter Japan to establish a business. After establishing the company and meeting capital and employment requirements, you transition to a Business Manager visa, which requires a registered office in Japan and capital investment of at least JPY 5 million.

Permanent Residency.

Standard path requires 10 consecutive years of residence in Japan, with at least 5 years on a work visa ^[3]. The Highly Skilled Professional route shortens this substantially ^[3]. Permanent residency has no expiration (but the re-entry permit does). Permanent residency gives you the right to live and work without restrictions while keeping your US passport.

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 are employed full-time by a Japanese company, you are 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 are 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. 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 Is 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. There is a monthly out-of-pocket cap (kougaku ryouyouhi) that limits your total copay based on income. Above that cap, 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). Hospital stays tend to be longer than in the US. 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 with 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.

Medicare does not cover care in Japan. If you are enrolled, maintain Part A for potential return. Japanese healthcare costs are low enough that most Americans find the system more than adequate.

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. In Tokyo, expect to pay JPY 80,000 to 150,000 per month for a 1K or 1LDK apartment (one room plus kitchen) in a central ward.

Move-in Costs.

Japanese rental move-in costs are high. You will 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, and a guarantor company fee (50 to 100% of one month's rent). Total move-in costs run 4 to 6 months' rent upfront. A guarantor company (hoshounin kaisha) replaces the traditional Japanese guarantor. 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 to 80 square meters (650 to 860 sq ft). Most apartments come without furniture, and some do not include light fixtures, curtain rods, or even a stove (gas ranges are often tenant-provided).

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. 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 to 20,000 in cash. Contactless payments (Suica, Pasmo, PayPay) are increasingly accepted for transit and chain stores, but cash remains dominant at independent establishments.

Language.

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. Budget for Japanese classes and expect 18 to 24 months to reach conversational proficiency. Basic survival Japanese (greetings, numbers, directions, ordering food) can be learned in 2 to 3 months.

Residence 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 receive a zairyu card (residence card) at immigration ^[1]. This credit-card-sized ID contains your name, photo, visa type, and period of stay. You must carry this card at all times.

Municipal Registration (Juuminhyo).

After 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. This registration is essential for opening a bank account, enrolling in health insurance, getting a phone contract, and receiving official correspondence.

My Number (Individual Number).

After registering your address, you are assigned a My Number (12-digit individual identification number). A notification card arrives by mail. 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.

SOFA Status (Military).

If you are affiliated with the US military in Japan under the Status of Forces Agreement (SOFA), your situation is fundamentally different ^[2]. 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. 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, which involves establishing an entirely new legal identity within the Japanese system.

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 multiple categories. Bowing as greeting. These are the baseline expectation, not optional etiquette tips. Most Japanese people are gracious about foreigner mistakes, but making an effort to follow the norms earns significant goodwill.

Work Culture.

If you are 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. 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). 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 occur every few years. Prepare an emergency kit (water, food, flashlight, first-aid, copy of important documents) and know your nearest evacuation point (hinanjo). Buildings are constructed to earthquake-resistant standards (among the strictest in the world). Typhoons affect Japan from June through October, particularly in the south and along the Pacific coast. Flooding and landslides are the main typhoon risks.

Shipping Household Goods.

A 20-foot container from the US West Coast to Japan takes 3 to 5 weeks by sea. Personal effects enter duty-free as household goods. Given the small apartment sizes, most Americans significantly downsize before moving. Furniture often does not fit Japanese spaces. Ship personal items and buy furniture locally.

Compare Japan

Visa guides for Japan