Investing is no good if you get deported
A few immigration-related thoughts. Just to be clear, I’m talking about the Japanese immigration authorities, not global immigration issues. Those are well beyond the scope of this site.
I believe anyone who is here in Japan for the long-term should aim to get permanent resident status or naturalize.
You can get permanent residence after ten years here, or three if you are married to a Japanese citizen. You can naturalize after five years.
There are no negatives to permanent residence. It is better than any other visa, for the following reasons:
- It is permanent, and you won’t lose it due to job loss, divorce, etc.
- Makes it easier to get loans, etc.
- (intangible, but important) Gives you more standing in society
Naturalizing is a big step because Japan requires you to give up other nationalities to become a Japanese citizen.
Since 2012 foreign residents have not needed to buy re-entry permits to leave Japan. This is a huge improvement on the previous system, where we were forced to pay the 3,000 yen (single entry) or 6,000 yen (multiple entry) fee to leave Japan.
However, for permanent residents it may make sense to buy one anyway.
I went into the local immigration office the other day. It was pretty empty, possibly because of all the changes making it less necessary for foreign residents to visit there.
I got a new passport recently, and remembered that I should maybe get my permanent resident sticker moved into my new passport. I also decided to get a re-entry permit, just in case.
Right now if you leave Japan for less than a year you can come back with your valid visa or re-entry permit.
However, if you are away for longer, on the 366th day you lose your permanent residence automatically. This is huge.
I decided paying 6,000 yen every four years or so is worth it to insure against the very low chance of me being away for more than a year. After all, we don’t know what is going to happen with natural disasters, family illnesses, accidents, etc.
Losing my PR would count as a catastrophic result for me, so weighed against that 6,000 yen is trivial. I just have to remember to go in and get a new stamp every four years or so.
At the immigration office I was informed that they no longer put PR stamps in passports, so I didn’t need to get that done.
Hmmm. This is good and bad. Good in that it’s one less trip to the immigration office. Bad in that nosey airline employees occasionally demand to see visas when returning to Japan, and having that sticker in the passport was a handy way to show them. Now I’ll have to dig out my zairyu card and explain things.
I did, however, get the re-entry permit. It cost 6,000 yen (which I had to pop out to the nearby post office to pay, as they use the stamp system, presumably to reduce the chance of corruption) and involved me filling out some ancient form that doesn’t make sense any more (asks for alien registration card number, as well as my ‘home’ address abroad and my travel dates, which of course don’t exist yet).
After about fifteen minutes and a successful defense of my refusal to fill in the more stupid bits of the form I had my shiny new multiple-entry 5-year re-entry permit and was on my way.
How about you? Do you have a re-entry permit? Do you disagree with my assessment of PR? Anyone else thinking of naturalizing? I got all the paperwork together years ago but haven’t pulled the trigger yet.
After living here and married for nearly 9 years, I’ve finally got all the stuff together for PR. Just need to organize and choose a day to go. Up until now it didn’t really affect me, as I was able to get a mortgage due to working at a large company, and they pay for my re-entry permissions and stuff. Motivation to do it now is to join some social lending and other financial sites that require PR.
I’m curious as to why you are considering naturalizing? The only benefits seem to be participating in elections, with lots of potential downsides
My main reason for naturalizing is that I live here and want to have the full rights and responsibilities of a citizen.
It won’t make much difference day to day, but I hate being treated a certain way because I am foreign. Tiny things, like the city office demanding I write my date of birth as 1977 instead of S52, or people insisting I write my full name in katakana instead of my common use name in kanji. I also want to come in on a Japanese passport, and use the APEC business visa waiver program (only for Japanese citizens, not residents). I also want to vote, and maybe participate in politics at some point.
I can handle discrimination at the personal level, but it bothers me at the institutional one.
On the other hand, having EU citizenship was huge for me (but looks like I’ll be losing that). The ‘insurance policy’ aspect of having British citizenship and Japanese permanent residency still appeals. This is the only reason I have a drawer full of documents rather than a Japanese passport…
Ideally I could have both, but I think that will never happen due to political considerations surrounding Chinese or Korean potential dual citizens.
I do not have a re-entry permit, but you raise some good points about not knowing what can happen.
I know several people with Japanese spouses who don’t want to go through the hassle of getting PR, but I’m in agreement with you: PR is the way to go. At the very least, it saves the hassle and cost of paying to renew a visa every so many years, and it could potentially allow you to remain in Japan if you suffer a divorce or the death of your spouse.
I just wish Japan would allow people who naturalize to retain their previous citizenship. If they recognized dual citizenship like this, I’d be on my way to the Immigration Bureau right now. For me personally, I want that degree of permanence here in Japan, but I also can’t imagine giving up my current citizenship.
Yeah, the paperwork for PR is less onerous than the paperwork to renew a spouse visa, so the argument that getting PR was a hassle always sounded dumb to me 😉
There are ways around the citizenship thing, but they are very grey indeed.
I totally agree. I have been a PR for over 15 years now and would love to naturalize but I would have to give up my other 3 citizenship. Simply not worth it. So, keep my PR even if I lose my job and make sure I return once in 365 days with my multiple re-entry permit as well as being able to keep my other citizenship. I doubt they will ever recognize dual citz – oh well.
Just a minor correction about the naturalization.
You are expected to give up the other nationality, if it is plausible, but there are several countries that prevent giving up ones nationality. Thus, in some cases naturalization in Japan results in being a dual-national, legally.
I understand now that once you have been given your certificate of citizenship from Japan that you must produce a document showing you have renounced citizenship of your other country(ies).
What nationalities are plausible? If that was the case then wouldn’t Japan state one is not possible to obtain the right of naturalization. Some EU countries also state (due to WWII) that if you take Japanese citizenship by naturalization you will lose that EU citizenship. There is a form that you sign and it also states this if you actively enroll yourself in the military. Many citizenship laws are very out of date with few changes to clauses over the decades.
Interesting. Which countries can get away with this feat? 😉
I know the US makes it unpleasant to give up US citizenship, but it’s possible.
Several American countries for example: http://www.turning-japanese.info/2013/10/do-some-naturalized-japanese-become.html?m=1
Mexico is one of them.
Japan has no other option that allow dual citizenship in those cases.
Nice! I’m jealous.
There is also a (very grey, if not black) work around for UK citizens. You can give up your UK citizenship once and then ask for it back. You have to pay a hefty fee, but the process if pretty automatic. The second time you do this you need special permission from the government.
Another advantage to the permanent residency visa, unless you already have a spouse visa, is that it allows you to do any kind of work. Other working visas limit you to one area, and for example teaching at schools, universities or eikaiwa require three different visas.
Also I don’t think permanent residency is really an issue when you are getting a mortgage. Most people working in banks don’t even know what a permanent resident visa is. (Some don’t even seem to know what a visa card is!) The bank just wants to see that you have been getting a salary from the same employer for a number of years, and will likely be able to pay the loan back.
In my experience PR is very necessary when trying to get a loan from many banks. I remember one time going around seven or eight trying to get a small personal loan (500,000 yen).
The second question (the first was ‘can I help you?’) was ‘do you have eijyuuken’. No, and they regretfully (or relievedly) showed me the door.
Now I can imagine certain job situations trumping this (like working for a national university or a well-known Japanese company), but for many people, at least here in Miyagi, PR is essential to secure credit.
I have the same experience as Ben. I did get a mortgage without PR but only one bank was willing to do that and even they made it a condition that I apply for PR as soon as I was eligible. Their initial rate of interest wasn’t great, but, again, they said I could renegotiate it when I had PR. They stuck to that and lowered it. But every bank I dealt with knew all about PR and visas. It wasn’t absolutely necessary to have PR but it certainly would have made everything much easier and would have allowed me a greater choice of lenders.
I also had a friend who recently bought a house in Tottori that was told he needed PR to purchase. It was apparently pretty quick for him–seemed like he got it within a month of applying!
PR was basically required for me to get a mortgage with the financial institution associated with my house maker, here in Tokyo. This was the only reason I ever felt the urge to get PR, although having it now there is that little less hassle with renewing a work visa.
If one is married to a Japanese it would be a good insurance policy, if one is set on Japan though. I might head overseas if I did get divorced.
Knowing the fact that permanent residency status can be revoked if we stay outside of Japan for more than a year is scary!
Imagine all that time and effort spent on getting it, only to be miffed by an overly harsh rule that bureaucrats thought up.
Think I shall also go apply for the re-entry permit as soon as possible, even whilst on the skilled worker visa.
Useful stuff, thanks! I’m going to be eligible for PR from May next year (which means that I can put my application in from November this year). To check: if you have PR and a reentry permit, how long can you be out of Japan without your PR being cancelled?
I believe it’s the duration of the re-entry permit. Please confirm with immigration before betting your PR on it though 😉
Like RetireJapan, I also bought a re-entry permit after switching to residence card from alien card for the exact same reason. That was in 2012 I think. The duration of my residence card (7 yrs) is longer than the re-entry permit (5 yrs?) that I got so I called the immigration office. Basically, I was told that even if the residence card is still valid I wouldn’t be able to re-enter with an expired re-entry permit. So I think you should check both and the shorter duration between the two applies. Confirm with the immigration office just to be sure though.
I’ve been here for over 13 years and would love to apply for PR. However, I’m single and my understanding is that you need a sponsor or guarantor. What do people in my position usually do?
The best thing would be to talk to your local immigration office, as they will ultimately make the decision.
Dress up nice, take a Japanese friend if your Japanese isn’t up to scratch, ask they to run you through the process.
Alternatively call or have someone call on your behalf.
The really important thing is to keep records of who you spoke to and when. Often different officers will tell you different things, but they tend not to contradict each other. If you have the name of the person who said x, you have a good chance of x happening.
Good luck and I’d love to hear about your experience -guest post? 😉
I’m not planning on being here permanently and am on a spousal visa, but I was still thinking of picking up PR before leaving to basically leave the door open in the future, just in case the dreaded “what ifs”. That being said, only having it for a year without the re-entry permit would make my plan a total waste! We’ll definitely visit more than once every 4 years, but maybe not every year. Thanks for that tidbit.
I can think of one possible drawback to getting PR before being here a total of 5 years: it automatically renders you a permanent tax resident. Not a big deal if you work for a regular employer in an office, but if you’re working remotely/freelance then PR would eliminate your ability to exploit the tax loophole of not being taxed on work completed outside Japanese borders up until 5 years of residency. I have a friend who still spends half his time in Bali on “working vacations” to reduce his Japanese tax burden.
I hadn’t seen that (PR makes you pr for tax purposes). Are you sure about that?
Even so, it’s pretty rare to get PR in less than five years. I guess if you moved here already married and were hyper-efficient, you could get it in three…
Worth thinking about for people in that situation.
I read that on a tax form a few years back, but anyone contemplating going down that route should definitely re-confirm before trying it.
I agree it’s a rare case: it’d apply to those who married a Japanese citizen back home and moved to Japan, bringing their job with them though.
How many people actually know of a case in which someone got PR after 3 years? I’ve heard the criteria as you stated them myself, but all the people I know personally that have PR waited at least 7-8 years, even those who are married.
I think it used to be 5 years when I got PR. I got married after four years in Japan, then one of the part-time information staff in the immigration office told me I could get PR after three years of spouse visas.
I got all my paperwork together and went to apply, only to be told by the officer that it wasn’t possible. Being the stroppy type, I demanded to speak to the person in charge who confirmed my story and apologized for messing me around.
Finally got PR a couple of years later, after nine years in Japan (just one year before I’d have been able to get it anyway).
Hi all. Thanks RetireJapan for your very informative posts. I came to your site looking for an English article explaining the “iDeCo” that I could share to my foreign friends. Anyway, I came to Japan as a student (for 8 yrs), so it took 5 more years before I became eligible for PR (because I needed to submit proof of tax payment for 5 yrs), plus close to a year for approval. That’s a total of almost 14 yrs! I envy people who come straight to work as they only need 5 yrs. Now I’ve been living in Japan for almost 22 yrs, have my own family, and no plans of going “home” that I have been contemplating (for years now), that maybe it’s time to finally naturalize. The only thing that is stopping me really, is the fact that I have to give up my current nationality…as there seem to be no hope for dual citizenship in Japan.
Permanent residence visas have a catch. You can be charged inheritance tax for assets from outside of Japan. So if you have relatives who leave their estate to you in American, you will be hit with the tax here.
Hi Steve
I have to point out here that becoming a Permanent Resident (status of residence, like a visa) is not the same as becoming permanently resident for tax purposes.
Japan confusingly refers to both using similar English. PR is like a visa and does not change your taxes. Being permanently resident for tax purposes normally kicks in after 5 years and has all kinds of tax and legal effects, like paying tax on worldwide income (including inheritances).
So anyone who has been here for five years is probably already permanently resident for tax purposes, whatever kind of visa they have 😉
I think the issue of Inheritance tax is even more onerous than Steve suggests. Take a look at this Japan Times article from 23rd July 2017. If I understand it, and the accompanying Ministry of Finance table, correctly then someone on a Spouse Visa is liable for worldwide inheritance tax from their very first day in Japan. Those on work visas don’t seem liable until after 10 years of residence. In the article an expert suggests transferring from a spousal visa (Type1) to a work visa (Type 2) if possible. Please take a look:
https://www.japantimes.co.jp/community/2017/07/23/how-tos/gift-inheritance-tax-reforms-leave-japans-foreign-residents-liable/#.WZ2MfbpFzIU
Hi Phillip
That is a terribly-written article, eh? Clear as mud.
I believe it is referring to the changes in tax law for people AFTER they leave Japan.
Think that would be worth a blog post soon. Thanks for the inspiration!
Any PR or more eligable status will be taxed for any assets you ave in foreign country worth more than ¥50,000,000.
Hi Jay
I don’t think that is correct. The situation is a bit confusing, but there are three issues:
1. People with PR or spouse visa are subject to inheritance tax on any inheritances worldwide from day one (for people with working visas, this kicks in after ten years), and for up to five years after leaving (which seems unenforceable).
2. People who are permanently resident for tax purposes (live here for more than five years) have to pay tax on all income worldwide
3. PRfTP also have to declare all overseas assets if they have more than 50m yen’s worth (not pay tax but declare their existence). Failure to comply has can be met with fines and prison time.
I’m glad I’m going through the old posts, I was unaware of the requirement to get a reentry permit for stays of over a year outside of Japan. Although I plan to live here permanently, it’s possible I might require an extended stay back home to take care of family.
It seems that new laws have been introduced since this article was written. I applied for PR last week under the Highly Skilled Professional category. The requirement was only a one year of stay in Japan.
Hi AG
The highly skilled PR route was available when we wrote this, but I think only a handful of people had applied for it at that point.
I myself would barely qualify now (I added up my points -that’s not to say they would actually give it to me).
I’d be interested in seeing the number of people getting it now that the system is a bit more established…
I got a the PR in the Highly skilled category, ( I am here under less than 5 years), however, I am planing to leave Japan, so will take the multiple entry as suggested, ( very useful info BTW).
One question is that I will be getting retirements benefits from my company, I heard there are different tax rates, based on whether you are continue to live hear or you have left. Any ideas
Hi Kiran
Not sure, to be honest. I’m about 27 years away from having to think about that 🙂
Might be worth talking to HR about the specifics of your company scheme.
Hello Sir,
I am a PR and planning to leave Japan for 2 years, how about social insurance when i return back to Japan after 2 years?
I am having indian passport currently
Ashish
Hi Ashish
You would have to check with your ward or city office. One thing is that I would definitely not recommend getting the pension refund, as that will cancel out any payments you made over 3 years.
Also you will need a good reason to be out of the country for two years and keep your PR. Good luck!