Japan (JP)

Tipping is Not Done in Japan — and Can Cause Offence

Tipping is not part of Japanese culture in restaurants, hotels, taxis, or any service industry. Attempting to tip can embarrass or confuse staff — in some cases it may be seen as rude or condescending. Service charges are not expected.

⚡ Social awkwardness and embarrassment for the recipient; confusion; staff may refuse the tip or chase you to return it.

✅ Do not tip at restaurants, cafés, taxis, hair salons, or hotels. Service is included in the price and staff are paid living wages. Express appreciation verbally (ありがとうございました / Arigatou gozaimashita) instead.

Japan Does Not Allow Dual Citizenship — Renunciation is Required

Japan requires all naturalisation applicants to renounce ALL other nationalities before or at the time of acquiring Japanese citizenship. Japanese nationals who acquire a foreign nationality are technically required by Japanese law to choose one citizenship within 2 years.

⚡ If you naturalise as Japanese while retaining foreign nationality, Japan considers you solely Japanese — your foreign passport may not be recognised by Japan for official purposes. Children of mixed-nationality parents must formally choose one nationality by age 22.

✅ Understand dual citizenship implications fully before beginning naturalisation. Consult a Japanese immigration lawyer (弁護士) or certified administrative scrivener (行政書士). Many expats choose PR (永住権) instead — which provides near-identical rights without requiring citizenship renunciation.

Residence Tax (住民税) Bill Arrives Unexpectedly in Year 2

Residence Tax (住民税) is assessed on the previous year's Japan income. New arrivals pay no Residence Tax in their first year. In the second year (May/June), a large bill arrives covering the entire first year's Japan income. This surprises many expats who have not budgeted for it.

⚡ Unexpected bill of ¥100,000–500,000+ arriving in May/June of your second year in Japan. Late or non-payment results in penalties and potential wage garnishment.

✅ Budget approximately 8–10% of your first year's Japan income as a reserve for the second-year Residence Tax bill. Employees have monthly deductions after the first year — the gap is a one-time issue. Self-employed: pay quarterly installments on time.

Invoice System Registration Required for Freelancers (from Oct 2023)

Japan's Invoice System (インボイス制度 / Tekikaku Seikyusho) launched October 2023. Freelancers and sole proprietors not registered as Qualified Invoice Issuers (適格請求書発行事業者) cannot issue invoices that allow clients to claim consumption tax deductions — making them more expensive for business clients.

⚡ Without registration, clients cannot deduct consumption tax on your invoices — potentially reducing your competitiveness or requiring you to lower rates. Transitional relief: 80% deduction allowed through September 2026, then 50% through September 2029.

✅ If self-employed and working with business clients: register as a Qualified Invoice Issuer at the NTA (国税庁 — nta.go.jp). Consult a Zeirishi (税理士 / tax accountant) about whether registration and consumption tax filing is beneficial for your specific situation.

Exit Tax Applies to High-Net-Worth Departing Residents

Japan's Exit Tax (国外転出時課税) applies to residents with financial assets (stocks, bonds, derivatives) of ¥100M (approximately USD 700,000) or more who leave Japan permanently. Unrealised capital gains on these assets are taxed at departure as if they were realised.

⚡ Tax liability up to 20.315% on unrealised gains at departure — potentially millions of yen due immediately. Payment deferral options exist but require a Japanese guarantor or collateral.

✅ If your financial assets exceed ¥100M, consult a Japanese tax accountant (税理士) specialising in cross-border taxation at least 12 months before planned departure. Timing of asset sales before vs. after departure can significantly affect total tax liability.

Overwork Culture is Pervasive — Know Your Legal Rights

Japanese workplace culture has significant overwork pressure. Karoshi (過労死 / death from overwork) is a recognised legal category. Legal limits exist: regular overtime is capped at 45 hours/month; exceptional months maximum 100 hours; annual overtime maximum 720 hours. Despite the law, enforcement varies widely and social pressure to overwork remains strong.

⚡ Physical and mental health deterioration. Rights violation if monthly overtime regularly exceeds 100 hours without special employer–union agreement. Overtime beyond statutory minimums must be compensated at premium rates (25–50% premium).

✅ Track your actual working hours — by law you have this right. If regularly working 60+ hours/week, contact the Labour Standards Inspection Office (労働基準監督署 / Rodo Kijun Kantoku Sho). Overtime beyond 45 hours/month must be compensated — request payment or comp time in writing. Consider contacting an Arbeitskampf (労働組合) if employer is non-responsive.

There is No Statutory Sick Pay in Japan

Japan has no legal minimum for sick leave pay. Employment contracts may or may not include paid sick leave. If yours doesn't, you are unpaid from day 1 of illness. Long-term illness (4+ consecutive days): standard health insurance pays 60% of salary as 傷病手当金 (Shōbyō Teatekin / Sickness Allowance) starting from day 4.

⚡ Unpaid days for short-term illness if your contract has no sick leave. Many Japanese employees come in while sick to avoid pay loss — contributing to infection spread. Financial hardship for longer illnesses in contracts with no paid sick leave.

✅ Check your employment contract for sick leave provisions before signing. If seriously ill for 4+ consecutive days: apply for 傷病手当金 (Shōbyō Teatekin) from your health insurer — pays approximately 2/3 of your standard daily salary for up to 1 year and 6 months. Contact your employer's HR or the Japan Pension Service for the application.

Blue Form Tax Application Has a Strict 2-Month Deadline for Freelancers

Freelancers who miss the Blue Form (青色申告承認申請書) application deadline permanently lose the ¥650,000 special annual deduction for that fiscal year. The Blue Form must be submitted within 2 months of opening a business (or by March 15 for businesses started in January/February).

⚡ Missing the deadline = loss of the ¥650,000 青色申告特別控除 deduction. For a mid-range earner (¥5–8M income), this means paying ¥100,000–195,000 extra income tax for the entire year.

📅 Deadline: Within 2 months of starting business; or March 15 for businesses started in January/February

✅ Submit the 開業届 (Business Start Notification) and 青色申告承認申請書 (Blue Form Application) simultaneously on day 1 of business. Use freee (freee.co.jp) or Yayoi cloud accounting to generate both forms automatically — takes under 20 minutes. Submit via e-Tax or in person at the nearest 税務署 (Tax Office).

Maternity Allowance is Calculated on Salary 12 Months Before Leave Starts

Childcare Leave Allowance (育児休業給付金 / Ikuji Kyūgyō Kyūfukin) and Maternity Allowance are calculated based on your standard monthly remuneration from the 12 months before leave begins — not your current salary. A salary reduction in the months before leave permanently reduces your allowance amount during the full leave period.

⚡ A 20% salary reduction before leave results in a 20% lower allowance for the entire leave period (typically 6–12 months). Allowance = 67% (first 180 days) then 50% of the pre-leave calculation base.

✅ Avoid agreeing to salary reductions in the 12 months before planned leave. Maintain or increase your salary during this period if negotiating with your employer. Apply for Ikuji Kyūgyō Kyūfukin through your employer's HR within 2 months of starting leave — delays reduce retroactive payments.

Phone Calls on Trains are Socially Prohibited

Taking or making phone calls on trains, subways, and buses is considered highly antisocial and is announced as prohibited on all Japanese public transport. Priority seating areas (優先席 / Yūsen-seki) require phones to be switched to silent or airplane mode. Loud conversations of any kind on public transport are taboo.

⚡ Hostile stares (冷たい視線), public humiliation, possible confrontation from conductors or other passengers. Creates social reputation damage that follows you in repeated local commuting environments.

✅ Step off the train or onto the platform to take calls. Use headphones for music or video. Text or message rather than call in all public transport. Switch to silent mode on entry to any train or bus. At priority seats, place phone in your bag or pocket.

Move-Out Inspection: Tatami, Wall Damage Disputes Are Common

Japan's move-out process involves detailed inspection. Landlords can charge for repairs beyond normal wear and tear. Common disputes: tatami mat replacement (¥15,000–50,000 per mat), wall cleaning or repainting (cigarette smoke costs ¥30,000–100,000+), appliance repair. Japan's Ministry of Land guidelines limit landlord charges but disputes are common.

⚡ Unexpected deductions of ¥30,000–200,000+ from security deposit, or additional bills on top of deposit. Landlords sometimes charge for normal wear and tear — which the MLIT guidelines say they should not.

✅ Photograph and video every room thoroughly on move-in and move-out. Request a joint 立会い (tatchi-ai / walkthrough inspection) with the landlord or agent before handing back keys. Know the MLIT (国土交通省) guidelines on landlord charges — available free online. Do not agree to charges for normal deterioration. If overcharged, the National Consumer Affairs Center (消費者庁) mediates.

Vehicle Shakken (車検) is Mandatory Every 2 Years — Expensive to Miss

Japan's mandatory vehicle inspection (車検 / Shakken) is required every 2 years for used cars (3 years for new). Without a current Shakken, your car insurance is void and driving is illegal. Shakken costs ¥40,000–150,000+ including mandatory government fees (重量税, 自賠責保険) and workshop inspection charges.

⚡ Illegal to drive without current Shakken. Car insurance automatically invalid. Fine, licence revocation, and criminal liability in the event of an accident while driving without valid Shakken.

✅ Track your Shakken expiry date — shown on the windscreen sticker (upper right of windshield) and vehicle registration. Book at an authorised inspection station (指定自動車整備事業者) 1–2 months before expiry. If selling or leaving Japan, transfer or deregister (廃車 / Haisya) your vehicle before departure to cancel ongoing Shakken and insurance obligations.

Standard Home Insurance Does NOT Cover Earthquake Damage

Japanese standard home and renters insurance (火災保険 / Kasai Hoken / fire insurance) explicitly excludes earthquake, volcanic eruption, and tsunami damage. A separate 地震保険 (Jishin Hoken / Earthquake Insurance) rider — backed by the government — is required to cover quake damage.

⚡ In a major earthquake (which Japan experiences regularly), standard fire insurance pays nothing for structural damage, falling possessions, or fires caused by quake. Uninsured earthquake damage can total millions of yen for apartment contents alone.

✅ Add 地震保険 (earthquake insurance) as a rider to your fire/renters insurance when setting up housing in Japan. Earthquake insurance is government-backed and relatively affordable: ¥5,000–20,000/year for renters (木造 wooden structures in high-risk zones cost most, concrete apartments cost less). The premium is proportional to your fire insurance coverage — typically capped at 50% of the fire insurance value.

Foreign Nationals Often Need a Guarantee Company to Rent Property

Most Japanese landlords require either a Japanese personal guarantor (連帯保証人 / Rentai Hoshounin) or a rental guarantee company (保証会社 / Hoshōkaisha). Foreign nationals rarely have Japanese guarantors, making guarantee companies essential. Guarantee companies charge 50–100% of one month's rent upfront plus an annual renewal fee of 10,000–20,000/year.

⚡ Unable to sign a lease without guarantor arrangement — some landlords refuse foreign nationals even with a guarantee company. Initial guarantee fees add significantly to upfront costs. Annual renewal fees are an ongoing cost not visible in advertised rent.

✅ Use real estate agents experienced with foreign nationals (Sakura House, Ken Corporation, Able, Leopalace21 — some offer foreigner-friendly guarantees). UR Housing (公団住宅 / Toshi Saisei Kiko) requires NO guarantor, NO key money, and NO agent fees — the most accessible option for new arrivals. Check if your employer provides relocation assistance including guarantor services.

Non-Permanent Residents (Under 5 Years) Have Significant Tax Advantages

Non-permanent residents — those who have lived in Japan for less than 5 of the last 10 years — are generally not taxed on foreign-source income unless it is remitted to Japan. After 5 years, you become a tax-permanent resident and all worldwide income becomes taxable in Japan, even if you earned it overseas.

⚡ Unexpected Japan tax liability on overseas investments, rental income, pensions, or salary from foreign employers once you cross the 5-year residency threshold. This can amount to tens of thousands of dollars in surprise tax bills.

✅ Track your cumulative years of Japan residency from day 1. In the year you approach the 5-year threshold, consult a cross-border tax accountant (税理士 / Zeirishi) specialising in international taxation to review your overseas income situation before it becomes fully Japan-taxable. Timing of investments and income may need adjustment around this threshold.

Japan is rabies-free — pet import requires up to 180 days' mandatory quarantine

Japan is one of the few rabies-free countries and enforces strict pet import controls administered by the Animal Quarantine Service (MAFF, maff.go.jp/aqs). Dogs and cats from non-designated countries face mandatory quarantine of up to 180 days at a government Animal Quarantine Station at the owner's cost (approximately ¥2,500–¥5,000 per day). Even from designated countries (EU, UK, US, Canada, Australia, New Zealand, and a small number of others), the process requires: ISO microchip implanted before the rabies vaccination, two correctly-timed rabies vaccinations, a RNATT titre test (≥0.5 IU/mL) at a MAFF-approved laboratory, and a 180-day wait period after the blood draw before the animal can enter Japan. Errors in the required sequence restart the entire timeline.

⚡ Animals arriving with incomplete or out-of-sequence paperwork face the full 180-day quarantine regardless of vaccination history, at costs of ¥450,000–¥900,000. The sequence is strictly enforced: microchip → vaccination → titre test → 180-day wait. Any deviation invalidates the prior steps.

✅ Begin the import process at least 8–10 months before your planned move to Japan. Consult the MAFF Animal Quarantine Service (maff.go.jp/aqs) for the exact requirements for your country of origin. Implant the ISO microchip first, then vaccinate, then arrange the RNATT blood draw at a MAFF-approved laboratory. File a pre-arrival notification (事前届出) with the Animal Quarantine Station at your arrival airport (Narita, Haneda, Kansai) at least 40 days before landing. Budget ¥300,000–¥500,000 for the full process including tests, certificates, and airfreight even from a designated country.