Hey Japan Finance community,

Sorry if this has been discussed somewhere but wanted to ask a few questions about investing and retirement financial planning. I am a non-us citizen living and working in the US. We moved here from Japan where I am also a non-citizen, however, holding a permanent residency. Our future plans are still vague, but we may return to Japan in 5-10 years horizon (or later). What would be the best course of action to minimize tax burden in the and maximize investment growth in the future? Considerations :

1. Trad 401k vs Roth IRA
2. Trad IRA vs Roth IRA
3. Investing in etfs through a personal brokerage account in the US
4. Bonus question - if we decide to move back in 5-10 years, does it make sense to do an early withdrawal, swallow the penalty and then re invest in Japan through NISA?

I also wonder what the rules are for investing in Japan while leaving in the US (considering just putting money in, not selling). I hear some people continue to have NISA accounts while leaving abroad as well - what are the rules for that? I am also looking for a good cross border tax consultant that can help explain all of the rules.

Thanks!

Did anyone see this announcement? I think this is a huge opportunity for both Hakuhodo and World. If you think about it, online publishers and platforms are constantly battling ad fraud to prove to advertisers that their brand was seen by a real person and not a bot. What better way than to integrate World ID, which is a proof of personhood technology? It's brilliant, and I think a good "first mover" use case that will see other ad networks follow suit. What do you think?

(I didn’t see this topic covered before).

I have been out of Japan for a couple of years and still hold a PR visa. 43 y/o married with a Japanese housewife, working for a Japanese company (overseas branch), but currently have no income in Japan (it all goes through the European branch), and sold my house in Japan. Getting loans in the past has always been a breeze.

The question: Has anyone secured a loan quickly after returning to Japan, or would it require a year or two so one can provide tax payment proofs and prove of employment? Salary upon returning expected to be in the 18-25M range.

Alternatively: Any recommend banks for such cases assuming you make a good down payment to mitigate lender risk?

I am basically trying to avoid renting for a couple of years upon approval or having to pay for a place in cash, if it’s not required.

Hi All

Just wondering if anyone recently has managed to get a full loan for multiunit apartment building for investment? Just wondering how are other RE investors experience so far?

Hello everyone,

I would just like to know if there is a maximum transfer amount here in Japan whereas banks will not try to intervene or contact you as to what is the reason, purpose, etc.

I am asking this because I plan to withdraw some of my yen from Binance Japan then transfer it to my bank account here in Japan.

I am just worried that if the amount is somewhat big for them (but it's really not lol), it will be on hold or whatever policy will be triggered.

(Also because in Philippines, there is an amount whereas the banks will try to contact you if large amounts of money is transferred to your bank account.)

Thanks guys!

I’ve recently started a small business on a trial basis, providing proxy-buying services for customers. For now, my customer base consists of friends as I test the market and fine-tune operations before expanding. The process involves customers sending me a request for items they want to purchase, which I then buy on their behalf. These items are delivered to my address in Japan and afterwards shipped to them using an international courier service.

Currently, most of my customers are based in the Philippines. They pay me in Philippine Pesos (PHP) through my Philippine-issued bank account, and I withdraw the funds in Japan using my Philippine bank card. The exchange rate has no additional fees, but there is a withdrawal fee of 220 yen per transaction at 7/11 ATMs.

Since I am new to running a business, I have a couple of questions:

1. Is it advisable for my customers to continue paying me via my Philippine bank account, or should I explore other payment options? (for reference, Wise from PH to Japan is not possible as of this moment)

2. How should I properly manage my accounting records? (I am aware that if my earnings exceed 200,000 yen in a year, I need to declare taxes in Japan.)

3. I saw a article in Japanese that if you do exporting business and you have 1000万 of sales then you are eligible for consumptiom tax refund. Is this true? (1000万 is way too far to acheive from this moment but in the long run maybe I can achieve this)

If anyone has idea or opinions about this I would like to hear your suggestions. Thank you!

I'd love to hear from others on how they provide their receipts & invoices to their accountants especially for small business.

I have to categorize my receipts & input them in excel & have a digital copy of the receipt.
I do have Money forward with the accountant attached but I seem to still have to do the manual inputting in excel which I don't really like.

love to hear if others have a simpler approach with their accountants.

Hi everyone,

As the title says, considering to buy land and build our own house. Looking for an excel file to help me plan for the whole budget including indirect and mortgage related cost, taxes etc in English and or Japanese. To make sure we cover everything in our planning. Someone having such a file and willing to share (do not need numbers, just structure)

Thanks!

Hey everyone. Having recently changed jobs, I find myself in a better financial position than I ever have been salary-wise. This is great and I'm really happy about it, but coming from a poor background I'm concerned that I don't have the financial literacy necessary to make the best of my situation in the mid/long term. I've spent the last several years really grinding it out to get to where I am so I would like to be able to enjoy some of it while simultaneously investing, saving up for retirement, buying a home in the future, etc. Here's my general situation:

!Age: early 30s!<

!Nationality: US!<

!Location: Countryside!<

!Yearly pre-tax salary: around 16M!<

!RSU: 25k USD a year!<

My questions are:

1. What would be good, practical steps to achieving my goals? What might good budget prioritization look like?

2. What would you do in my situation?

3. What are some good resources to gaining the financial literacy necessary to navigate this?

I will likely consult with a financial advisor as well, but I'd really appreciate any input this community could give. Thanks in advance!

This post mentions:

Japan does have some competitors but their local software development capabilities are not very good which gives us an excellent opportunity to enter this market.

https://www.reddit.com/r/SaaS/comments/vwcj32/i_dont_speak_japanese_but_i_created_a_saas_in/

Is this true?

Is it a thing or possible or sometimes done whereby an old house is purchased (let’s say for ¥8 million yen), then renovated (have no idea how much it would be, but let’s say for my question’s sake ¥8 million yen??) for a total of ¥16 million yen….to get one loan from a bank to cover that whole deal?

Or even, for example, purchasing the home with cash and then taking out a loan for major renovation. Is that a thing Japanese banks would do?

As the flair says, real estate purchase journey. I’m just starting out with questions, so any thoughts or experience would be helpful.

I have tried the verification in paidy using MyNumber card to be able to use it for installation payments etc, but unfortunately, I got rejected..

Now I want to try Rakuten, do I still need to wait for 6 months?

Hello, helpful group members. I have been living in Japan for 10+ years, permanent resident for 5. I have a question about reporting dividends from brokerage accounts in the U.S. when I do my taxes in Japan.

1. I have a couple different brokerage accounts in the U.S. My understanding is that I need to report the dividends from taxable accounts (where random individual stocks, ETF, and mutual funds are held). However, is it true that I do not necessarily need to report the dividends received within a Roth account that I have? (I have seen posts that say this may be a gray area, and it may not be necessary to report the Roth dividends...).
2. I have seen some conflicting information (or, more likely, I just haven’t been able to understand the complexities!) regarding whether it is necessary to report dividend income under 200,000Yen for a year. Can someone explain this?

For reference (if this is relevant): I am in the 33% income tax bracket in Japan at the JPN company where I work.

I planned to request Corporate Certificate and Corporate Seal Certificate at the legal affairs bureau today to open a corporate bank account. But i was told that i need stamp card, which i didn't have. I heard that Judicial Scrivener supposed to do this, but mine didn't. Fortunately, this can get issued at the same place, unfortunately there is a problem and my Japanese isn't good enough to understand the issue.

I plan to hire an interpreter and comeback next week, but just wanted to know if anyone has the same problem or anyone can share me their experience doing this so i can understand what might be the issue.

Hello everyone,

I tried to search for this but I wasn't getting any hits. I bought my house this year and this will be the first year I pay taxes without my work doing it for me. I was told because I bought a house, I needed to do it myself for the first year. I was hoping there was some information about what I'm supposed to do written somewhere, in Japanese or English. Or, if someone that has gone through this could help walk me through the steps.

Thank you very much,

Does the payable pension insurance premium increase suddenly midyear? I’ve been paying into pension insurance as a foreign resident, and I know there’s usually an annual increase, but does this also happen in October? I noticed that my pension deduction has increased by 28% compared to previous months... Does anyone know how this works?

I`m looking for a professional indemnity insurance provider for a sole practitioner (not a registered business in Japan) for working within Japan and also covering overseas work.

Any suggestions welcome!

Hello everyone,

I hope you're doing well. I’m in a bit of a tough situation and could really use some advice.

I currently have an AEON credit card with a shopping limit (ショッピング[1回払い]) of ¥1,000,000 and a shopping revolving (リボ) limit of ¥100,000. I’ve spent ¥850,000, but due to some unexpected changes in my employment and health, I’m unable to pay off the full amount at once. I’m running out of time as the payment date is fast approaching.

Here’s my question: Can I contact the card center or bank and request to convert ¥850,000 of my balance to installments, even though my revolving limit is only ¥100,000? I’m not trying to avoid paying, but I just need a bit of extra time to get back on my feet.

I wanted to ask here first to see if anyone has been in a similar situation or has any advice. Any insights would be greatly appreciated. Thanks so much in advance!

i was talking to my wife about this and we were wondering what a smart course of action would be if someone was to suddenly catch a windfall with one of these huge lottery wins. it's pretty well known around the world that most people who win these huge sums go bankrupt really fast because of irresponsible lavish spending. so if you suddenly received a huge lump of cash, where would you put it?

we were thinking initially you'd want to secure a rainy-day fund, then look at maxing out a 新NISA (or two if married). after that would it just be a matter of allocating it to various ETFs, growth stocks and maybe real estate (internationally?)?

neither of us are very good with money so I thought it would be interesting to see what r/japanfinance thinks.

no we have not won 10億円 (but it would be nice!!)

Hi everyone,

I’m in a unique situation and hoping to get advice from those who’ve gone through similar circumstances. Here’s the background:

I was born with both US and Japanese citizenship and currently hold both passports. Right now, I’m living in Japan, and my mother has also held both citizenships without any issues, despite Japan’s single-citizenship policy. Recently, I found out I’m eligible for German citizenship by restitution, through my grandfather, who fled Germany during the Holocaust. This could be a great opportunity, opening up options for living, working, and traveling across Europe, and I’m interested in exploring life in Germany or other parts of Europe long-term.

However, I'd like to keep my Japanese citizenship. While I don’t see myself ever wanting to live in the US again, Japan feels like a long-term home base—though perhaps in intervals, as I’d like to spend some years abroad. That’s my dilemma. I love Japan, but the work culture here isn’t ideal (among other things), and I want the freedom to live elsewhere without needing to return to the US. I’m frustrated that I even have to worry about this in the first place due to Japan’s outdated stingy laws (which they seem to have quite a few of lol). But 仕方ない.

From what I’ve read, Japan doesn’t usually find out about additional citizenships unless you report them. Many Japanese dual citizens seem to keep quiet about any new citizenships they acquire. I’d plan to use my Japanese passport when entering and exiting Japan and, as I’ve been doing, only mention my US citizenship on any official Japanese documents.

I realize I’m in a fortunate position to even have this option, and that’s partly why I’m being so careful about it. I’d really appreciate hearing from those who have firsthand experience managing multiple citizenships, especially if you’ve kept Japanese citizenship while acquiring another. I know this is a complex situation, so I’m hoping for advice from those who have navigated similar paths rather than general opinions.

If you’ve held or applied for additional citizenships as a Japanese citizen, what was your experience with Japan’s awareness or lack of awareness? How do you practically manage multiple citizenships, especially when it comes to avoiding complications with passport use or travel?

We all know the JPY hasn’t been doing well this year, and it's getting closer (again) to its lowest point in many years. With my salary in JPY, I've been buying USD-denominated ETFs, which means that with a fixed amount, I'm getting fewer shares due to the exchange rate. This isn’t necessarily bad because, if I keep doing this, I'm essentially betting that the JPY will continue depreciating, allowing me to get more yen after I sell, thanks to FX and index appreciation. However, I’m uncertain about the JPY continuing to depreciate in the long run, and since I plan to hold the ETF for many more years:

1. Should I consider buying JPY-hedged ETFs instead of regular ones?
2. Can you think of any differences between buying a JPY-hedged S&P 500 ETF and a fund like eMAXIS US Equity S&P 500 that are already in JPY and following the Index?

Additional info: I haven’t decided if I’ll stay in Japan until retirement but I see myself here for many more years

Hi all. A large portion of my salary is in shares which vest over at a US brokerage, in USD. I've sold the majority (into USD) as I want to re-invest this into something a little more diversified. The cash remains in USD on the brokerage and I am looking for the best way to invest this, given that I want to invest in USD-based stock. I opened up an IBKR account and now realised they only accept JPY, so this doesn't seem worth it. I'd really rather not convert the USD to JPY to then buy something which requires it to be converted back again.

I have access to a Wise account (with large transfers) and also Sony bank if I need to. What would your suggestion be? We're talking 60-100k USD.

Thanks

EDIT: Since people like to make assumptions, I am not American. I do not have access to a US brokerage. The one provided through my company is restricted to just the shares I receive & vest from my company.

I did try to search, but it seems most posts here (or articles on the internet for that matter) focus on taxes if you are an employee in a Japanese company.

I'm trying to figure out how to pay taxes if I'm self employed and receive payments from overseas. That's basically it. I don't have any other income. I will be doing taxes in Japan for the first time.

I went to a local tax office, but they basically said "sorry, we have no idea, here's a brochure, go read it"... I was hoping they can at least give me a more specific guidance for how to proceed.

So, I'm hoping to get some advice here from those who are also self employed and do their taxes themselves.

Hello,

This is a bit of a niche question and a happy problem to have (no student debt). I have roughly $75-80k USD in a NJ 529 college savings account and rather than keep it sitting there for graduate school or my children, I’d rather move it into a Roth IRA.

What are the tax implications of doing this? Do I need to not use the FEIE this year since I am contributing to a Roth? But really I am just moving the money from one tax-free account to another.

I would appreciate some guidance on how to do this with minimal US tax penalties.

Thank you!

<edit> Too late to change the title from "poor" to "dumbass." I have not been earning this good salary for very long, which is a large part of my lack of assets at this point in time. I take responsibility for my poor decisions in the past and am trying to do better moving forward.

I've been in Japan for 20 years, living as a poor private school teacher. I'm 47 now, and am just starting to think critically about my life situation. I'll explain the situation first, and then ask questions below. If you get that far, thank you for reading.

• 47 year old US Citizen
• Full-time permanent Japanese employment contract, current pre-tax income of around 8,000,000/year, and I'm on a union scale so that will rise until 65, and if I'm able to I can continue working until I'm 70. Sigh.
• 20 years in Japan, but I missed out on my first chance a PR when I tried moving back to the US 8 years ago
• Low income and carelessness means that I've avoided savings and investment until about 2 years ago
• Single, never married, no prospects on the horizon.
• No family to speak of back in the USA, no expectation of substantial inheritance. Also no bank account in the US and no ability to undertake financial transactions in the USA. Citibank effectively forced me to close that account, and I have not found a way to open up an account in the US remotely ... at least not at my income/asset level.
• No assets or property to speak of, but also no student debt and no credit card debt.

I understand that as a US Citizen it's difficult/impossible to do much investing, which puts a big limit on what I can do. Am I wrong about this?

At my age, what sort of property should I be looking to buy? Would it make sense to max out my credit limit for a nice mansion in a good location (I've got my eye on a new construction in the Imaike area of Nagoya, near where I work) which I would enjoy living in? Or should I be more modest and aim for a place which I can pay off before retirement? Or, would a cheap vacation home make more sense, which I could pay off entirely while still renting an urban apartment for weekday living?

I've lived the vast majority of my adult life in Japan, and at this point am more connected to Japan than to the USA. How much financial sense does it make to go for Japanese citizenship and renounce my US citizenship?

Hi everyone,

I’ve been working remote for a few years with my Dutch employer while living in the Netherlands, but I’d like to experience life in Japan for a year, so I’ve obtained a Working Holiday Visa. The representative at the Japanese Embassy in the Netherlands mentioned that working remotely is allowed as long as it’s not full-time. Now that I have the visa, I still have a few questions:

How does taxation work if you stay in Japan for more than 183 days? Are there specific forms to file, or what’s the usual process for this?

In the Netherlands, if you plan to stay abroad for more than 8 months, you’re required to deregister from your local municipality. Do you need to do this immediately, or can you decide and act on it later? I’m uncertain about my plans to stay beyond 183 days, given the tax implications and any restrictions around it.

What are my employer’s obligations in this situation, especially since they don’t have a branch in Japan?

Thanks!

(I hope this is the right sub to ask for this)

My wife and I are considering moving to Japan in several years and primarily living off of selling crypto assets (long term holdings). I would likely self custody the assets and only transfer over to a local exchange to sell as needed.

I’m wondering what the taxes will be like for such assets?

A little about my wife and I:

• Current residence is in the US
• I’m a US and Canadian citizenship
• My wife is a US citizen (she was born/grew up in Japan but naturalized to being a US citizen and lost her Japanese citizenship in the process)
• My wife would be coming over under a descendant of Japanese parents visa and I would be going under a spousal visa
• We would pursue permanent residency as soon as possible (i can likely qualify under the fastest track of the highly skilled foreign profession visa if needed)

Thanks

Sorry if dumb question but I've bought some USD with JPY in my Sony bank forex account. Can I use a normal ATM in japan to cash out USD bills?

So 2 months ago I posted here asking on behalf of an ageing single parent about the best method of receiving her € pension to a Japanese bank account:

Opinion about best method to receive foreign remittance in Japan (Euros) : r/JapanFinance

So she opened a Sony Bank account and I gave the Dutch pension bank (not the state pension btw, its my late father's employer which happens to be a bank) my mum's SWIFT and account number etc and they confirmed in early October that the first payment will be made on 23rd October, might take a few days blah blah blah.

Roll on to November and still no sign of the money, no email from Sony to acknowledge a pending receiving process (urgh, horrible process to try and train a 70+ to do). I contacted the Dutch pension bank and after a week they confirmed the money was sent back to them and they don't know why??

She has received Euros in her account before as I did a test from my newly created Wise account to make sure it would go through OK before I informed the Dutch bank.

I asked my mum to call Sony but she says they don't answer the phone. (Also patience is not her strong suit, I doubt she is waiting to connect for 20+ mins like I would). I want to call them but I know they won't deal with me as I'm just a gaijin claiming to be her daughter calling from an international number with poor Japanese skills. They will think I'm a scammer for sure.

This whole situation is stressing me out immensely. In my country (UK) we can apply for Lasting Power of Attorney for ageing parents so the children can take over and help them with their financials. Is there an equivalent of this in Japan? I think I need it... Presumably a UK one is meaningless outside of the country.

Also any idea why Sony Bank would reject a payment to my mother? I've been thinking about it a lot and wondering why they didn't call my mum to discuss it first before sending it back.

I have a theory about maybe its a name issue. Perhaps Sony Bank did not acknowledge her gaijin surname added on to her Japanese name. e.g. if my mum was called Yuko Matsumoto Smith in her passport but in her account it just says Yuko Matsumoto, and the payment went to Yuko Matsumoto Smith, would it get rejected? I can't get my head around it, they know my mum's passport name from the application process.

I also don't know if its related to intermediary bank info was not considered by the Dutch Bank maybe. I've written to the Dutch Bank about the 2 points mentioned. I've asked mum to be a bit more patient waiting to connect to Sony Bank Customer Services as well.

Sorry, I'm ranting a bit. I'm overwhelmed at work today and my mum is sending me lots of stressed out texts.