Immigration
Japan | Introducing Japan’s new visa scheme for international remote workers
Summary
The Japanese government has announced the introduction of a Digital Nomad Visa, targeting international remote workers. This new system will allow foreign nationals who meet certain criteria to stay in Japan for up to six months. Specifically, applicants must have an annual income of at least 10 million yen and be enrolled in appropriate insurance, among other requirements. Additionally, this visa is only available to nationals of countries that have tax treaties with Japan and are visa-exempt. The primary aim of this initiative is to attract remote workers with high-level expertise to Japan, thereby boosting domestic consumption.
Many details, including application procedures, are yet to be announced, with further information to be provided once decisions are made. The public comment period begins on 3 February 2024 with the system slated to start at the end of March 2024. This would be a period where comments and opinions on the draft framework will be gathered by the government from the public and may bring changes to the final release.
The Detail
The draft framework of the system announced as of the date of issue of this alert is as follows.
| Conditions | Details |
| Nationality/Region of Applicants[1] | Argentina, Australia, Austria, Belgium, Brazil, Brunei, Bulgaria, Canada, Chile, Croatia, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hong Kong, Hungary, Iceland, Indonesia, Ireland, Israel, Italy, Latvia, Lithuania, Luxembourg, Malaysia, Mexico, Netherlands, New Zealand, Norway, Poland, Portugal, Qatar, Republic of Korea, Romania, Serbia, Singapore, Slovakia, Slovenia, Spain, Sweden, Switzerland, Thailand, Turkey, United Arab Emirates, United Kingdom, United States, Uruguay |
| Permissible Duration of Stay | Up to six months |
| Eligible Activities |
|
| Status of Residence | Designated Activities (does not qualify for “medium to long-term resident”) |
| Family Accompaniment Eligibility and Requirements | Permissible
|
| Minimum Annual Income | At least 10 million JPY |
| Other Requirements | Must have insurance coverage for death, injury, or illness occurring during their stay in Japan |
| Application Process and Review Period | Not released as of now |
| Possibility to Change from Short-Term Stay | Not released as of now |
[1] These are nationals of countries that have tax treaties with Japan AND are from visa-exempted regions. Please note that this list is currently being verified and may be subject to changes in the final release.
What this means
In response to the spread of COVID-19 and the resulting widespread adoption of remote work, there has been an increased demand for a residency status that allows for remote work beyond the current maximum 90 days permitted under short-term stay visas. In addition to addressing this demand, the Japanese government hopes that this will have a spill over effect in boosting domestic consumption by creating an environment where highly skilled remote workers can stay in Japan for longer periods.
However, it is important to note that under the draft framework, the residency status granted under this new system will not classify individuals as medium to long-term residents within the Basic Resident Register system. Consequently, the extent of rights as residents that will be recognized for remote workers and their families under this new regime will be a crucial point of observation moving forward.
Individuals interested in taking up the Digital Nomad Visa should be aware of any exposure to individual tax and social security. Similarly, foreign employers will need to be mindful of the permanent establishment exposure that could be triggered by their employees working in Japan under the Digital Nomad visa
How we can help
Our team can provide comprehensive support on the Digital Nomad Visa in terms of assisting you in understanding the program in greater detail, performing eligibility assessments and applications of the visa once the conditions and detailed application processes are released. In addition, we can advise the potential individual and corporate tax implication to manage any tax risks upfront for employees and individuals who wish to apply for the Digital Nomad Visa.
In the meantime, our team is closely monitoring the implementation of this program and we will provide you with more updates once the details are released.
Contact us
For a deeper discussion on the above, please reach out to your Vialto Partners point of contact, or alternatively:
Noriyuki Tominaga
Japan Immigration Partner
Jia Ee
Japan Immigration Director
Wakana Tachikawa
Japan Immigration Senior Manager
Saeko Ichimi
Japan Immigration Senior Associate
Further information on Vialto Partners can be found here: www.vialtopartners.com
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Vialto Partners (“Vialto”) refers to wholly owned subsidiaries of CD&R Galaxy UK OpCo Limited as well as the other members of the Vialto Partners global network. The information contained in this document is for general guidance on matters of interest only. Vialto is not responsible for any errors or omissions, or for the results obtained from the use of this information. All information is provided “as is”, with no guarantee of completeness, accuracy, timeliness or of the results obtained from the use of this information, and without warranty of any kind, express or implied, including, but not limited to warranties of performance, merchantability and fitness for a particular purpose. In no event will Vialto, its related entities, or the agents or employees thereof be liable to you or anyone else for any decision made or action taken in reliance on the information in this document or for any consequential, special or similar damages, even if advised of the possibility of such damages.
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Further information on Vialto Partners can be found here: www.vialtopartners.com
Vialto Partners (“Vialto”) refers to wholly owned subsidiaries of CD&R Galaxy UK OpCo Limited as well as the other members of the Vialto Partners global network. The information contained in this document is for general guidance on matters of interest only. Vialto is not responsible for any errors or omissions, or for the results obtained from the use of this information. All information is provided “as is”, with no guarantee of completeness, accuracy, timeliness or of the results obtained from the use of this information, and without warranty of any kind, express or implied, including, but not limited to warranties of performance, merchantability and fitness for a particular purpose. In no event will Vialto, its related entities, or the agents or employees thereof be liable to you or anyone else for any decision made or action taken in reliance on the information in this document or for any consequential, special or similar damages, even if advised of the possibility of such damages.
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