Non-Resident Tax Rules for Inheritance in Japan
Japan's inheritance tax law categorizes taxpayers into "unlimited" and "limited" based on their connection to Japan. This determines which assets are taxable. Understanding your category is crucial for foreign nationals.
Unlimited vs. Limited Tax Obligation
| Category | Taxable Assets | Who |
|---|---|---|
| Unlimited | All worldwide assets | Domiciled in Japan, or foreign national with 10+ years residence |
| Limited | Only assets in Japan | Not domiciled in Japan, or foreign national with <10 years, or table-1 visa holder |
The 10-Year Rule
Foreign nationals who have had a domicile (住所) in Japan for 10 or more years out of the last 15 years before the inheritance event are treated as unlimited taxpayers. This means their worldwide assets are subject to Japanese inheritance tax.
Important Exception
Foreign nationals with "table-1" visas (技術・人文知識・国際業務, 企業内転勤, etc.) are generally treated as limited taxpayers even if they have lived in Japan for more than 10 years. This rule was introduced to encourage foreign talent to work in Japan without facing worldwide taxation.
Practical Scenarios
Scenario 1: Short-term resident (3 years in Japan)
A foreign national on a work visa who has lived in Japan for 3 years → Limited taxpayer. Only Japan-located assets (e.g., Japanese bank accounts, real estate in Japan) are subject to inheritance tax.
Scenario 2: Long-term permanent resident (15 years)
A foreign national with permanent residency who has lived in Japan for 15 years → Unlimited taxpayer. All worldwide assets are subject to Japanese inheritance tax.
Scenario 3: Intra-company transferee (12 years)
A foreign national on an intra-company transfer visa (table-1) for 12 years → Limited taxpayer (table-1 visa exception applies).
FAQ
What is the 10-year rule for foreign nationals?
Foreign nationals who have had a domicile in Japan for 10 or more out of the last 15 years are treated as unlimited taxpayers, meaning all worldwide assets are subject to Japanese inheritance tax.
Are table-1 visa holders treated differently?
Yes. Foreign nationals with table-1 visas (work visa, student visa, etc.) are generally treated as limited taxpayers regardless of how long they have lived in Japan, meaning only Japan-located assets are taxed.
Related Guides
This guide provides general information only. It does not constitute tax advice or tax filing services. Please consult a licensed tax professional (税理士) for accurate calculations.