r/JapanFinance

As the title says.

I've got a normal savings account for my child here in Japan. I also have a NISA. It hit me the other day....why not throw the same money I'm putting in their bank account into my NISA.

Then, compounding and growth and all.

Then when they get xx years old, I take out a chunk of it (some percentage that I'll figure out) and they have it themselves. I would assume that comparing the amount of ¥¥¥ they would have after 15 years in a normal savings account vs 15 years compounding within my NISA that the NISA money would be way more.

Somehow, after what I'm learning in this forum and, more precisely, in this country...there is a flaw in this logic somewhere. I know it, I just don't know what it is.

Thoughts? Thanks!

An ongoing project is to prepare for my survivors a small file or list that can be used as a guide for what to do, or what needs to be done, if I die. Yes, I've googled and read some of the innumerable lists available online, but I think that what follows are a few Japan-specific aspects.

A preview: what happens with future tax payments when someone dies--both local/residence tax, and national? Similarly, what happens with the regular health insurance payments when someone dies. These are the main questions.

***

I'm 74, and have been trying to ready things for my death--where everything is, what bills are being paid by auto-deduct that will have to be shifted over to some different account, bank/investment accounts and logins, codes/logins to my laptop and phone, and some online accounts/subscriptions, and so on. Another aspect is taxes and healthcare payments after death, and I'm hoping for some feedback here on these.

So if I die tonight or midway thru some future year, I assume some survivor will have to (1) pay my remaining residence taxes. And as a retiree, there are the remaining payments this calendar year, and I think the final one (of four) at the end of next January. Is it correct that all these would need to be paid? Or does death somehow stop the clock on those?

But also, even tho I will have made some money this year before my death (dividends and some gains), (2) is it correct to assume that, since I'll be gone and will not be resident here (or anywhere) come January 1st, 2027, that there won't be any residence tax due for 2026? Even tho (3) my wife would have to file a final, post-death national tax return for me, which may entail some taxes for the earlier, pre-death 2026 dividends/gains? Also, (4) what happens with dividend payments that occur between the time of my death and the disbursement/settlement of the estate? Are those lumped in with everything overall, or, since I've read that inheritance happens at the time of death, would my inheritors then be responsible?

To illustrate, one inheritor might get shares of SPY, another might get shares of QQQ. Would each inheritor be responsible for the dividends paid after my death by each of those ETFs?

Further, would (5) health insurance payments for the year cease on death (or shortly after), or, since they are calculated on the previous year's income, would my estate owe the remaining payments that had been calculated as due during 2026? Or do those cease upon death of the insured?

Finally, I'm kind of rambling around on this. So if you have other suggestions about what to add to a list of Japan-specific things to cover for this final bit of end-of-life type of paperwork, please offer ideas. (And I have added a note that my pension providers need to be contacted to stop those payments.)

I am American so asking in another thread about best investment strategies, one of the replies was to have my spouse invest.

After months of discussing finally, She’s willing to put away 100,000 yen a month. I have set up a Seicho NISA for myself invested in 2/3rds global etf and 1/3rd US ETF via IBKR. How can I do this for her? Recommended brokerages, and can I use/should I use the same VOO/VT strategy for her as a Japanese citizen? I never looked into tsumitate as I know that’s bad for Us Citizens, is that preferred for JP citizens?

Any and all advice welcome.

Hello folks..

Like the title, I already have Yuuchou account as my main bank account.
I usually buy stocks from Rakuten Sec, and to transfer the fund I use the Yuchou Direct via browser without any fee.

Lately, Rakuten Bank offers some point for opening an account there.
I was wondering what is the good side of it, since I already have Yuuchou as my main account.
I don't want. to open an account, transferring some funds but ending to not using it at all, and they only taking the monthly fee from the account.

Thank you!

Hello!

I recently did a direct bank transfer to an artist I'm commissioning in Japan. Their bank is Japan Post Bank and for whatever reason (probably thinking the transfer was suspicious because it was a large amount and the artist had never gotten a transfer before) they denied it. The money has yet to return to my account and it's currently been over 10 business days (granted, that's about what it took to send it). I'm nervous because of how much money it was and my bank says they can't contact the intermediary or Japan Post Bank? Apparently, they don't even know it's been denied because the denial notice would arrive at the same time the money does.

Anyway, does anyone know if I'm able to call anyone at Japan Post Bank as a non-Japanese speaker and see what's going on? The artist I'm working with says that the representations wont tell them any information because it's not their money.

Any help is appreciated! Thanks!

My wife (Japanese citizen) and I (US citizen, Japan PR) are both in our mid 40s. We have two kids around middle school age. We live in a small city on the West coast where the cost of living is pretty reasonable.

There's a high likelihood I'll be laid off this year. Even if I don't get laid off, I might quit. I have no intention to work again, though if an interesting opportunity came up I would consider it. My wife is also unemployed.

I have about $3M in US stocks - all pretty much invested in Broad Market ETFs (e.g. VTI). About $500K is in a US IRA account, with the rest being in a post-tax US brokerage account. I have about $70K in cash (after I pay a fairly substantial estimated tax payment that is due this year). And about ¥8M in a Japanese "defined contribution" retirement account.

Our house and cars are paid off.

I think I should be eligible to receive US Social Security - though the amount will probably be fairly small since I just barely hit the required number of years to be eligible. I should also be eligible for Japanese Nenkin - which I also understand will pretty minimal. I think my wife also qualifies for Nenkin via my employer, though I really do need to have her log in and verify they have been making payments on her behalf all these years.

At some point in the future (hopefully not any time soon although my parents are getting up there) I will likely inherit a few million dollars (pre-tax).

The picture on our living expenses is a bit hazy right now. In a given year I pretty much blow through my entire ¥20M (gross) salary. But a lot of that goes toward paying taxes incurred on vesting RSUs, and some large purchases in the way of cars, home improvements, real estate, travel, etc.

To be honest I don't really know what our monthly living expenses are, and I know I need to do some work here to get a clearer picture. I think that the amount that we actually *need* to live comfortably is more like ¥600K/mo. That being said, based on my my math I think I would be able to cover even ¥1M/mo with a 3% withdrawal rate if needed.

I know this is all a bit sloppy, and I have some work to do to get my financial house in order. FIRE has always been something that I've dreamed about in the back of my mind, but this year it's like a flip has switched, and now I rather suddenly feel like it's time.

What I'm looking for now is some advice on next steps/preparations. Recommendations for asset allocation. Any rude surprises that I might be in for? (I know resident taxes and health insurance are going to suck in the first couple years, for example) Any other thoughts, advice, or suggestions for further reading?

I am trying to figure out how to handle the following situation. I realize that I need professional advice outside of this subreddit, but as this is all new to me I need some guidance on what options I might have and who to reach out to.

The facts are as follows:

• I am a US citizen
• I am currently residing in Japan
• I have spent a little over 4.5 years out of the past 10 in Japan on a combination of Highly Skilled Professional and Student Visas
• I have a highly concentrated stock position from over 10 years ago with very low basis
• I need to diversify out of this position to sleep at night
• I would like to live in Japan in the future

My understanding from browsing this subreddit is that capital gains from stocks held in a foreign brokerage purchased before residing in Japan and sold while a Non-Permanent (Tax) Resident are only subjected to Japanese taxes based on the amount remitted into Japan.

When I exceed a cumulative Japanese residency of 5 years out of the past 10 years later in 2026 I will become a "resident other than a non-permanent resident”". This subjects me to Japanese taxes on worldwide income sources.

While the upper capital gains rates for Japan and the US are quite similar, because Japan calculates the gain based on the relative Japanese Yen valuation there is an additional roughly 1.5x factor on the tax rate due to the weakening of the yen.

I'm not wild about the additional scrutiny from the NTA after achieving Japanese tax residency, but if the tax rates are roughly equal for things like capital gains and dividends then redirecting taxes from the US to Japan while I'm living there makes sense to me.

Paying hundreds of thousands of additional taxes because the yen is currently weak makes staying in Japan less financially sound.

Having just spoken with a tax consulting firm, their advice was to leave before I surpassed five years as a Japanese resident and stay out of Japan for at least two years.

Given that I have been working towards a potential life in Japan this is not ideal. I want to find out if there is a path forward for the near-term where I could be treated as a US resident for tax purposes but also spend time in Japan.

Q1 Is it possible to leave Japan before becoming subject to taxation on worldwide income, take care of things back home, and then return shortly afterwards?

Q2 If residency in Japan needs to be avoided after a capital gains realization close to the five year threshold, what options are available?

From my understanding so far, the key is where my jusho (住所) or domicile is considered to be by the NTA. If my residency is in the US then I am not a Japanese tax resident and the situation is simplified. I have found some information through posts and the JapanFinance wiki on how the location of residency is determined but not in enough detail that I feel certain that I would have the same understanding as the Japanese authorities. Here I definitely need professional expertise.

If I need keep my residency out of Japan following the sale to simplify tax issues, my hope is that something like the Designated Activities Visa might allow me to spend time in Japan while staying a US resident. I would be giving up the right to work in Japan, access to Japan's healthcare, and be unable to keep a Japanese bank account. In exchange I keep some ties with Japan and potentially set up a situation where I become a resident in the future.

Q3 Are there flaws in my thinking? Are there other things I should be considering? Do you have recommendations on professionals to reach out?
Any help would be appreciated!

TL;DR:
Financially disincentivized to being a Japanese resident near-term.
Need to figure out length of departure from Japan as a Non-permanent Resident to comply with tax treatment of foreign sourced capital gains.
Looking to keep ties to Japan going forward.
Need advice on who to talk to and questions to ask to avoid making mistakes in timing and visitation.

References:

Treatment of capital gains as a non-permanent resident:
https://www.reddit.com/r/JapanFinance/comments/1oojuca/tax_treatment_of_us_stocks_for_nonpermanent/
Capital gains is based on yen valuation:
https://www.reddit.com/r/JapanFinance/comments/1m7y785/taxes_on_capital_gains_on_listed_securities/
Factors taken into account for determining residency:
https://www.reddit.com/r/JapanFinance/comments/p8dce2/jusho_for_a_permanent_resident_temporarily/
Clarification on how current tax residency affects scope of taxation:
https://www.reddit.com/r/JapanFinance/comments/1px6ha9/japan_tax_residency_clarification/
Hypothetical on visiting Japan on a Designated Activities Visa without establishing Japan residency:
https://www.reddit.com/r/JapanFinance/comments/1po4d6q/hypothetical_tax_implications_of_coming_to_japan/

Hi everyone,

I’m posting here to try to get peoples perspective on a tricky tax matter I’m facing, if anyone has been through something similar or knows about this I’d really appreciate to hear your thoughts. 

I’m a non-Japanese permanent resident living and working full time here, lived in Japan for over 10 years but did a small stint in the UK where I worked at a US-incorporated company at their London office. Recently news came to light that the company will be acquired in a cash deal. The good news for me is I have vested RSUs from my time working there which needed a liquidity event to pay out. Now that is confirmed to happen (early next year) and I’m being asked to submit details to get the payout. 

It’s not going to be a life-changing amount of money for me, but a nice pay out for the work I did there and enough that I don't want to risk losing it through overpaying tax.

The confusing part is since the company is US-based, and I earned it while living in the UK, but now live and work in Japan - who should I pay tax to and what amount? The 3 countries being involved here is the part that’s making me wonder how complicated a three-country case like this is. Am I massively overestimating the complexity of this, or is this the kind of thing I should seek advice from an international tax accountant for?

The main thing I want to know is if that are any traps I should be aware of where the foreign tax credit I get in Japan wouldn’t fully cancel out the double taxation. My worst nightmare is a situation where I’d end up paying the tax twice and not be able to get it back. 

Thank you.

Using IBKR/other US based brokerages and investing in US+Global funds explicitly, what is my next best investment strategy?

For long term, Roth IRA is taxed in Japan but not in US, so should I start maxing that out again as well?

For short term (within 10 years) I want to have money for my children’s education. If I just invest in individual stocks outside of just the risk that would also incur both us capital gains and Japan tax, so should be avoided, right?

If it’s not a tax advantaged retirement account, maybe just use a high yield savings at this point? Non-stock market based options like Real estate/renting across in the US, I understand this can also be written off as an expense in Japan, but what makes the most sense?

Kind regards

Edit: it seems like an IRA option might not make sense actually. Thanks for the advice. In that case, assuming I maxed out ¥2.4 million a year into my NISA, should I just be looking at stocks then and be prepared to just pay capital gains tax, etc.?

I have maxed out this year NISA and i have some money left to invest more.

My wife is on dependent status and does a part time job. She earns around 1M annually. She has her NISA account opened.

I can channel some money to her account to buy some stocks under NISA.

Will there be any tax implications for her if we don’t sell. Any issues visa renewal wise?

I don’t plan to sell anything for next 15~20 years.

I'm from Australia, and with how expensive housing has become here, it feels like I'll never be able to get into the property market.
I've been looking into buying an akiya in Japan near a tourist area, renovating it over time, using it as a holiday home occasionally, and renting it out on Airbnb when I'm not there. My main goal is to turn it into a long-term investment rather than just a holiday house.

Has anyone here done something similar?

Is it actually a worthwhile investment, or are there hidden costs and challenges I should know about?

I'd really appreciate any advice or experiences.

Reading the comments on this subreddit has got me thinking.
I dont have stocks invested, Im not a 20M finance/tech bro and I dont have rich parents. It seems many people here have some sort of luxury salary and I want to know how I can get something myself.

(I know the odds are stacked against me)

As background I am working as an Assistant language teacher early 30s, im working towards the goal of N2 (in 2 years), I am not a US citizen who studied at Harvard and I have a degree in graphic design.

If you were in my shoes and willing to pivot to something else in the coming years, what would you do?

Japanese wife (49) and US me (55) are considering FIREing in Miyazaki, Kyushu in the near future. Dual income working in Tokyo now but looking to quit full-time work and just enjoy life where my wife is from. I have PR btw.

We have no kids. We own a small mansion in Yokohama but have closed the sale on it and will move to a rental. We'd look to buy a mansion down in Kyushu on a mortgage -- and it looks like 25-30M is completely fine for size/location/age based on listings.

Quick overview of finances

Assets:

- 150M in US stocks (admittedly weighted to semis but plan to spread more to ETFs) and her 新NISA (1-2 yrs from max). And yes, I do realize withdrawing from the stocks will incur 20% Japanese tax. EDIT: A weakness here besides the lack of diversification is that these stocks were mostly from when the rate was 110usd/jpy so the value grows the weaker the yen gets but conversely, a stronger yen will decrease total value (in jpy).

- 20M in cash

Expenses:

- About 400k/month, but I suspect it'll be slightly less in Kyushu

- Will take on a mortgage but that's factored in the item above. No other debts.

Income:

- We'd do part-time work with a combined income of 3M (haven't looked too hard into this but maybe 20-30 hrs/week but would stop if assets appreciate considerably)

I saw the thread below from 2-3 years ago positing some numbers required -- leanFIRE (66M), FIRE (100M), fatFIRE (300M) with the caveat that those are general numbers and ymmv.

https://www.reddit.com/r/JapanFinance/comments/1gfkjg5/defining_leanfire_fire_chubbyfire_fatfire_amounts/

I'm using a 3% safe withdraw rate in my headmath. It seems like we should be in the clear. Of course, a market downturn could sour those plans. Pension will start at 65 but that'll be about 2M combined. All in all, this FIRE plan feels secure but I see such a large range of numbers that people state for themselves and sure, I mean, everyone has different expenses and needs. I want to make sure I'm not overlooking something.

If any of you would like to share your insights, we'd really appreciate it!!

I have been stuck on a loop trying to register at IBKR NISA for the second part of the document asking for my number and a selfie picture (almost 1 month of back and forth doing their smarphone thing)

(The part where they ask me to do the 3 angle thing and selfie seems to be a problem)

Is there like a trick for it? Or is there a better platform where i can do it more seamlessly?

Hi all, I'm looking for a tax advisor (individual or firm) who can handle both US and Japan filings for someone with income in both countries with capital gains, employment income, etc. Ideally one point of contact who either does both sides in-house. Please let me know if you have any recommendations - thanks!

Hello Reddit friends!

I have been living in Japan for almost 5 years and I decided to hire a tax accountant here to make my life easier when it comes to taxes. I'm American, and dealing with taxes in both Japan and the US can be a challenge, so I decided to talk to a firm that could help me with my Japanese taxes.

It turns out I need to re-submit my 2025 taxes since I missed something, and the tax accountant is helping me with that. However, they asked me to share my e-Tax ID and password, and honestly, the password part made me uncomfortable.

Is it normal for tax accountants to ask for ID and password — specifically the password — to submit taxes on their client's behalf? I know e-Tax has an official 代理送信 / 税理士への情報連携 (proxy submission / accountant data-sharing) mechanism that's supposed to let a 税理士 file on your behalf without needing your actual login password — so I'm curious why they'd need my password directly instead of using that route.

Thank you for reading.

Seriously considering a preferred USA stock that is treated as a return of capital rather than a dividend until the initial value is recovered; only stumbling block would be the Japanese tax office opinion on those dividends.

Anyone with experience of this?

I haven't been the best at keeping track of my account amounts, especially as I've been dealing with a lot of personal problems. But after I started keeping track, I realized small amounts simply disappear from my account. A bit over 600 yen this time.

I'm currently abroad and will be contacting them, but I thought I'd post to ask if anyone else's had this issue as well as to warn others to keep a close eye on their accounts.

Edit: a couple words

How would you invest ¥10M in Japan? assume NISA is maxed out.