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Japan, an island country in East Asia, is celebrated for its unique blend of ancient traditions and modern innovation. Tokyo, its capital, represents the nation's economic and cultural hub, known for cutting-edge technology and high fashion. Culturally, Japan is famous for sushi, anime, manga, and martial arts, alongside traditional arts like tea ceremonies and bonsai. Economically, it's a leader in automotive, electronics, and robotics. The country faces demographic challenges with an aging population. Its natural beauty spans from Mount Fuji to the beaches of Okinawa. Japan is also known for its resilience against natural disasters through advanced preparedness.

last updated on Jan 05, 2025



Taxes

Individual tax rate: n/a

Japan has a progressive income tax system with rates ranging from 5% to 45%. There's also a resident tax of approximately 10% levied by local governments. The highest combined rate can reach around 55% for the highest earners (those making over ¥40 million annually). Tax residents in Japan are taxed on their worldwide income, while non-residents are only taxed on Japan-sourced income. For accurate information, visit Japan's National Tax Agency website.

Corporate tax rate: n/a

The effective corporate tax rate in Japan is approximately 30-35%, consisting of multiple components: national corporate tax, local corporate tax, business tax, and local corporate special tax. Small and medium-sized enterprises may qualify for reduced rates. The actual rate can vary by location since prefectures and municipalities can set certain local tax components. For current rates, check the Ministry of Finance Japan website.

Crypto friendly: Very friendly

Japan is one of the world's most progressive countries regarding cryptocurrency regulation. Cryptocurrencies are recognized as legal property under the Payment Services Act. All crypto exchanges must be registered with the Financial Services Agency (FSA). Japan has clear regulatory frameworks for cryptocurrency businesses and was one of the first countries to create comprehensive crypto regulations. For current regulations, visit Japan's Financial Services Agency website.

Bank account friendly: Moderate

Opening a bank account in Japan can be challenging for foreigners, especially without permanent residency. Most banks require a residence card (在留カード), Japanese phone number, and local address. Major banks like MUFG, SMBC, and Mizuho have English-speaking services in major cities. Online banks like Rakuten Bank and Sony Bank are becoming more foreigner-friendly. The process typically requires an in-person visit and various forms of identification. For banking information, visit the Japanese Bankers Association website.

Visas

Investor Visa: Hard

Issued to those making significant investments in Japan, such as establishing a business or investing in real estate. Requires a minimum investment amount, proof of financial stability, and a business plan. Can lead to permanent residency or citizenship with sustained investment.
  • Challenges: High, due to substantial financial commitment and the need to understand Japanese business regulations.
  • Source: Ministry of Foreign Affairs of Japan  

Digital Nomad Visa: Moderate to Hard

Aimed at remote workers with a high income level, allowing stays for up to 6 months without local employment. Requires proof of an annual income of about 10 million yen and health insurance coverage.
  • Challenges: Moderate to High, primarily because of the high income requirement and proving non-competitive work status.
  • Source: Posts found on X  

Marriage Visa: Moderate to Hard

Granted to foreigners married to Japanese citizens or permanent residents. Needs marriage certificate, proof of relationship, and sometimes financial stability. Can lead to permanent residency.
  • Challenges: Moderate, due to the need for authenticating the marriage and sometimes language barriers.
  • Source: Ministry of Foreign Affairs of Japan  

Visitor Visa: Easy to Moderate

For short-term stays for tourism, visiting friends, or short business trips. Typically valid for 90 days, no work allowed. Requirements include a valid passport and sometimes proof of onward travel.
  • Challenges: Low, as long as basic entry requirements are met, though many nationalities receive visa-free entry.
  • Source: Japan National Tourism Organization  

Student Visa: Easy to Moderate

Issued to those enrolled in Japanese schools or universities. Requires proof of admission, financial means to support study, and sometimes health checks. Allows limited part-time work.
  • Challenges: Low to Moderate, the primary hurdles being acceptance into a Japanese educational institution and financial proof.
  • Source: Ministry of Foreign Affairs of Japan  

Work Visa: Moderate to Hard

For those with job offers from Japanese companies in specialized roles. Requires employment contract, qualifications, and sometimes specific skills or degrees. Visa duration tied to employment.
  • Challenges: Moderate, due to the need for a specific job offer which aligns with visa categories.
  • Source: Ministry of Foreign Affairs of Japan

Economy and Business

Property Ownership: n/a

In Japan, foreigners can own land and property with the same rights as Japanese citizens. There are no legal restrictions based on nationality or residency status. The process involves navigating local real estate markets, understanding zoning laws, and dealing with registration. Freehold property gives full ownership, while leasehold provides building ownership on leased land.
  • Challenges: Easy to Moderate, mainly due to understanding the legal and bureaucratic processes.
  • Source: Japan Property Central  

Payment friendly: High

Japan is advanced in payment systems with widespread acceptance of cash, credit cards, and increasingly, mobile payments like PayPay and Suica. However, some rural areas or small businesses might still prefer cash. Foreign visitors might find the lack of English support in some payment systems challenging.
  • Challenges: Easy to Moderate, with the caveat of language barriers in certain contexts.
  • Source: Japan Guide  

Economy: Moderate

Japan boasts one of the world's largest economies, characterized by high-tech manufacturing, automotive, and electronics sectors. However, it faces challenges like an aging population, deflation, and slow growth. Foreign investment is welcomed but requires navigating cultural business practices and language barriers.
  • Challenges: Moderate to Hard, due to economic complexities and cultural integration.
  • Source: World Economic Forum  

Business friendly: Moderate

Japan has a reputation for being somewhat challenging for foreign businesses due to language barriers, unique business etiquette, and regulatory compliance. On the positive side, there's support for innovation, a skilled workforce, and high consumer quality expectations. Starting a business can involve more steps than in some Western countries.
  • Challenges: Moderate to Hard, primarily due to cultural and regulatory navigation.
  • Source: Doing Business - World Bank Group 

Affordability: Moderate

Living in Japan can range from affordable in rural areas to very expensive in cities like Tokyo. While food and public transportation are relatively cheap, housing, particularly in urban centers, can be costly. For foreigners, the cost of living can be high due to language learning, healthcare, and import taxes on goods.

  • Challenges: Moderate, due to the disparity between urban and rural costs and the need to understand local pricing.
  • Source: Numbeo  

Communications and Technology

Internet: High speed

Japan has one of the world's most advanced internet infrastructures, known for high speeds and reliability. Broadband services, including fiber-optic connections, are widely available, even in rural areas. Public Wi-Fi is increasingly common, with initiatives like "Japan Connected-free Wi-Fi" for tourists. However, some services can be predominantly in Japanese, posing a language barrier.
  • Source: Japan Ministry of Internal Affairs and Communications  


Communication: Moderate

Communication in Japan benefits from advanced technology but faces language challenges. English proficiency can be limited outside major urban areas, though younger generations and those in business settings often speak English. Translation apps and services are widely used. Text messaging, email, and social media platforms are popular, with LINE being the predominant messaging app.

  • Challenges: Moderate, due to the language barrier and cultural nuances in communication styles.
  • Source: Japan External Trade Organization (JETRO)  

Phone friendly: Moderate

Japan's mobile phone market is highly developed with extensive 4G and emerging 5G networks. SIM cards for visitors are available, but understanding which plans suit one's needs can be challenging due to language issues. Most phones work, but some foreign models might not be fully compatible with all local networks. Payment for services often requires local payment methods or credit cards.
  • Challenges: Easy to Moderate, with the main hurdle being the compatibility and setup of foreign phones along with language issues in service selection.
  • Source: NTT DOCOMO  

Social, Safety and Politics

Progressive: Moderate

Japan demonstrates progressiveness in areas like technology and consumer goods but is considered moderate to conservative in social issues like gender equality and rights for the LGBTQ+ community. Urban areas like Tokyo are more progressive than rural regions. Efforts are ongoing to increase diversity and inclusion, yet traditional values still hold strong influence.
  • Challenges: Moderate to Hard, due to cultural resistance to change and entrenched social norms.
  • Source: Japan Times  

Religions: Less than 5

Shinto and Buddhism are the predominant religions in Japan, often practiced in tandem. Shinto is more tied to national identity and daily life rituals, while Buddhism deals more with ceremonies like funerals. Christianity and other religions exist but with a small presence. Religious practices are generally tolerant and private.
  • Challenges: Easy, as Japan has a high level of religious freedom and tolerance.
  • Source: Encyclopaedia Britannica  

Safety: Very safe

Japan is renowned for its safety, with low crime rates, especially in terms of violent crime. This is attributed to strict gun laws, cultural norms, and efficient policing. However, there are concerns about natural disasters like earthquakes and typhoons.
  • Challenges: Easy to Moderate, mostly due to natural disaster preparedness rather than crime.
  • Source: World Bank  

Political Stability: Moderate

Japan enjoys political stability with a parliamentary government system where the Liberal Democratic Party has historically dominated. Despite this, there's a dynamic political scene with occasional scandals and shifts in public opinion, particularly around economic and social issues.
  • Challenges: Moderate, with stability generally assured but affected by political scandals or economic policy changes.
  • Source: BBC News  

Corruption: Low

Japan has a relatively low level of corruption compared to global standards, with strong legal frameworks and public integrity. However, there are occasional high-profile cases, especially in politics and construction sectors, which can shake public trust.
  • Challenges: Moderate to Hard, due to the cultural and systemic aspects that can hide corruption beneath a veneer of conformity.
  • Source: Transparency International  

Friendliness: Moderate

Japanese society values politeness and hospitality, often going out of their way to assist foreigners, though language barriers can pose challenges. Urban areas are more accustomed to foreigners, making interactions smoother. However, the deeply ingrained concept of 'uchi-soto' (inside-outside) can make social integration complex for outsiders.
  • Challenges: Moderate, mainly due to language and cultural nuances.
  • Source: Lonely Planet  

Education

Average education: High literacy

Japan's education system is highly regarded for its rigor and commitment to academic excellence, with compulsory education lasting for nine years, covering elementary and junior high school. High school attendance is nearly universal, with over 99% of students progressing, although it's not compulsory. The curriculum is standardized by the Ministry of Education, focusing on subjects like mathematics, science, and Japanese language. Japanese students consistently score well in international assessments like PISA. However, the system is often criticized for its exam-centric approach and the pressure it puts on students, which can lead to high stress levels and mental health issues. 

  • Challenges: Easy to Moderate, as the system itself is accessible but achieving high scores in this competitive environment can be challenging.
  • Source: Ministry of Education, Culture, Sports, Science and Technology (MEXT)  

International Schools: Moderate

International schools in Japan cater primarily to expatriate children, offering curricula from countries like the US, UK, or IB programs. These schools are often seen as an alternative to the Japanese education system, providing education in English or other languages. Enrollment generally requires payment of high tuition fees, which can be a significant barrier. Availability is another issue, with most schools concentrated in major cities like Tokyo and Osaka. Admission can also depend on the school's capacity and the applicant's previous academic performance. These schools are not part of the Japanese public education system, hence, they do not follow the national curriculum.

  • Challenges: Moderate to Hard, due to high costs, limited availability, and potentially competitive admissions.
  • Source: Japan Association for Promotion of International Education (JAPIE)  

Technological expertise: Highly developed

Japan is a global leader in technological innovation, particularly in areas like robotics, electronics, and automotive technology. The country's workforce is well-educated in STEM fields, with many top universities offering specialized programs in these areas. Companies like Sony, Toyota, and Panasonic are world-renowned for their technological expertise. However, integrating into Japan's tech industry can be challenging for foreigners due to language barriers, cultural differences in business practices, and the hierarchical nature of Japanese corporations. Also, the tech sector is highly competitive, requiring not only technical skills but also an understanding of local market demands and consumer preferences.

  • Challenges: Moderate to Hard, because of the need for both technical proficiency and cultural acclimatization.
  • Source: Japan Electronics and Information Technology Industries Association (JEITA)  

Health

Seasons: 4 seasons

Japan experiences four distinct seasons, each with its own charm and set of activities. Spring is renowned for cherry blossoms (sakura), drawing tourists from around the world for hanami (flower viewing). Summer brings high humidity and temperatures, with festivals like Tanabata and Obon. Autumn showcases stunning foliage, particularly in regions like Kyoto, with cooler, comfortable weather. Winter varies by region, offering skiing in Hokkaido while Tokyo and other cities might see milder conditions. Adapting to these seasons can be challenging due to extreme temperature shifts, especially if unprepared for summer humidity or winter cold in northern areas.

  • Challenges: Easy to Moderate, mainly due to the need to adapt clothing and activities according to seasonal changes.
  • Source: Japan Meteorological Agency  

Fitness: High

Japan promotes fitness through various cultural practices like daily exercise routines in schools (radio taiso), a strong emphasis on walking, and sports like judo, karate, and sumo. Urban areas have numerous gyms and fitness centers, though they can be costly and sometimes male-dominated. Outdoor activities are popular, with many parks and trails available for walking, hiking, and cycling. However, cultural attitudes towards body image can differ from Western norms, potentially impacting one's fitness journey. Also, the convenience of public transport might reduce walking, and the fast-paced lifestyle can limit time for exercise.

  • Challenges: Moderate, due to cultural differences, cost of facilities, and lifestyle adaptation.
  • Source: Japan Sports Agency  

Pollution: Moderate

Japan has made significant strides in managing pollution, particularly after the environmental catastrophes of the 20th century. Air quality in cities like Tokyo is generally good, thanks to strict regulations on emissions. However, industrial areas can still face issues with air and water pollution. Noise pollution in urban areas is notable, and waste management, while efficient in cities, still grapples with plastic waste. Rural areas often enjoy cleaner environments, but the legacy of past pollution incidents (like Minamata disease) remains a reminder. For foreigners, understanding and navigating Japan's stringent environmental laws can be challenging.

  • Challenges: Moderate to Hard, due to the complexities of urban pollution and environmental regulations.
  • Source: Ministry of the Environment, Japan  

Healthcare: High quality

Japan's healthcare system is universal, offering high-quality care at relatively low costs due to government subsidies. Access to doctors and hospitals is widespread, with an emphasis on preventive care. However, language can be a barrier for non-Japanese speakers, especially in less urban areas. Waiting times for non-emergency procedures can be long, and navigating the health insurance system might be complex for foreigners. Also, the cultural approach to healthcare, including a preference for conservative treatment, might differ from what some expatriates are accustomed to.

  • Challenges: Moderate, primarily because of language barriers and cultural differences in medical practices.
  • Source: Ministry of Health, Labour and Welfare  

Diversity

Food diversity: Highly diverse

Japan's food culture is celebrated globally for its diversity, rooted in a blend of tradition and innovation. While sushi and ramen are internationally known, there's a vast array of regional cuisines, from the beef of Kobe to the seafood of Hokkaido. The country has also embraced international cuisines, with cities like Tokyo offering an extensive range of global foods. Efforts towards food diversity have increased, particularly with the rise of halal, vegan, and vegetarian options to cater to tourists and residents with dietary restrictions. However, the challenge lies in the depth of cultural understanding and the adaptation of traditional Japanese cooking methods to accommodate diverse dietary needs. Urban areas are more accommodating, but rural areas might have fewer options.

  • Challenges: Easy to Moderate, due to the growing awareness and availability of diverse food options, though availability can vary significantly by location.
  • Source: Food Diversity, Inc.  

Ethnics diversity: Low

Japan is often described as ethnically homogeneous, with the vast majority of its population being of Japanese descent. However, there is an increasing presence of ethnic minorities, including Koreans, Chinese, Filipinos, and Brazilians of Japanese descent. Urban centers like Tokyo and Osaka have more ethnic diversity, particularly with international business and student communities. Challenges to increasing ethnic diversity include cultural assimilation pressures, language barriers, and legal frameworks that can complicate long-term residency for foreigners. Discrimination can still be an issue, and social integration might be difficult due to Japan's traditional societal structure. Efforts towards multiculturalism are growing, but progress is slow, with policies and societal attitudes still catching up to global standards.

  • Challenges: Moderate to Hard, due to cultural norms, legal immigration policies, and societal acceptance issues.
  • Source: Japan's Ministry of Justice