Living in Japan: who is a resident, what is taxed, what is passed down

In Japan, you are considered a resident as soon as you have a domicile or continuous residence for one year or more. A foreigner who has been a resident for five years or less within the last ten years is considered a "non-permanent resident": their foreign-source income paid abroad is only taxed if it is remitted to Japan. Income tax rates range from 5 % to 45 %. This page summarizes information from the Japanese National Tax Administration (NTA) and explains what it does not cover.

It only deals with Japan. French tax residency and departure formalities are covered in our pages on France.

Three residency statuses, three tax regimes

The NTA's income tax guide distinguishes three situations.

A temporary departure does not interrupt residency if certain ties remain, for example, a family member staying in the home. The NTA specifies the same definition of non-resident on its page dedicated to this status: no fixed address and no continuous residence of one year.

Your status in Japan is determined by Japanese law. If you are also a resident of France, the convention will determine your status (Article 4 § 2): our page on the France-Japan convention details the order of the criteria.

The income tax scale

The NTA publishes a table of basic tax, with the note "laws in force on April 1, 2026".

The tax is calculated by multiplying taxable income by the tax rate, then subtracting the deduction. This table shows the basic tax. The NTA also mentions a special reconstruction surcharge in its withholding rules, and the Franco-Japanese convention refers to local taxes on residents (Article 2). This page does not calculate either of these.

Non-residents: withholding tax and declaration

A non-resident is taxed only on their Japanese-source income. The NTA provides examples: profits from a permanent establishment, rents from buildings located in Japan, dividends from surpluses or profits and distributions received from Japanese companies, royalties, salaries for work performed in Japan, and pensions from insurance contracts.

For a non-resident without a permanent establishment, a withholding tax of 20.42 % applies to several categories of income, and 15.315 % to two of them. If a tax treaty applies, the rates may be reduced or the income exempted: the request must be submitted through the payer before the payment date. This page does not identify the categories subject to 15.315 %. The NTA page numbers them, and the France-Japan tax treaty itself caps certain rates.

Leaving Japan: the tax representative

A person who loses their domicile or residence in Japan, but retains reporting obligations, must appoint a tax representative residing in Japan. The NTA describes the notification to be filed with the appropriate tax office. If no notification is given before departure, the NTA indicates that a declaration must be filed before departure. This page of the NTA does not cover the taxation of unrealized capital gains upon departure.

Inheritance rights: where are the assets located?

The NTA establishes a general rule: an heir living abroad without a domicile in Japan is subject to Japanese inheritance tax only on assets located in Japan. It provides for exceptions, related to the nationality and domicile of both the heir and the deceased, which are interpreted on a case-by-case basis. The same document sets out rules for the location of assets: bank deposits are located at the branch that received them, and shares at the headquarters of the issuing company.

The NTA scale applies to the amount acquired by each heir, calculated according to their legal share:

The amount of the basic allowance has not been read: this page does not provide it. The France-Japan tax treaty does not address inheritances.

What this page does not cover

It does not address local taxes on residents, the reconstruction surcharge, the taxation of unrealized capital gains upon exit, social security contributions, or local savings (accounts, assurance-vie). No official document consulted confirms these points.

An income of 12 million yen: a numerical example (fictitious profile)

Situation. A French executive, a fictitious profile, has been working in Japan for three years. He has a Japanese residence, a taxable income of 12,000,000 yen (hypothetical) and foreign-source income paid into a French account.

Issue. He wants to know what status applies to him and how much basic tax he owes on his Japanese income.

Strategy. He counts his years of residence over the last ten, then reads the NTA scale.

Result. With three years of residency, below the five-year threshold, he is considered a non-permanent resident if he does not hold Japanese citizenship: his foreign-source income paid abroad is taxed only to the extent that it is remitted to Japan. On 12,000,000 yen, the tax bracket is 33 %: 12,000,000 x 33 % – 1,536,000 = 2,424,000 yen of basic tax, or 20.2 % of taxable income. At 18,000,000 yen, the bracket increases to 40 % and the basic tax is 4,404,000 yen, or 24.47 %.

This profile is fictitious. The calculation does not include the surcharge, local taxes, social security contributions, or the right to deduct.

What changes depending on your situation

• The number of years spent in Japan over the last ten years.
• Your nationality, which determines your non-permanent resident status.
• The place of payment and the source of your income.
• The assets you hold in Japan and elsewhere, for inheritance purposes.
• Your French tax residence, as long as you retain it.

No outcome is guaranteed, and Japanese law is validated with local advice.