Japan

Tax residency in Japan is generally triggered by physical presence exceeding 183 days in a calendar year. Foreign income treatment: unknown. Controlled Foreign Corporation (CFC) rules are in force. Residents who own or control foreign entities may face attribution of that entity's undistributed profits under local anti-avoidance provisions.

National income tax 5–45% + 10% inhabitant (local) + 2.1% reconstruction surtax = up to ~55.9%. Non-permanent residents (<5 yrs): foreign-source income not taxed unless remitted to Japan. NISA accounts allow tax-free investment returns. Capital gains 20.315% flat.

The standard corporate income tax rate is 31%. Establishing a legal presence here involves a higher degree of administrative complexity, often requiring local legal assistance.

Account opening in Japan can be challenging for foreign nationals or non-resident businesses, and enhanced due diligence is common practice. Internet infrastructure is excellent, with widespread fibre broadband and reliable mobile connectivity across urban and suburban areas.

Japan is a member of the Financial Action Task Force (FATF) and meets its anti-money-laundering standards. EU tax blacklist status: not_listed. Structures involving this jurisdiction may attract additional scrutiny or reporting obligations under EU member state rules.

Based on our scoring model, Japan ranks highest for Founder / Entrepreneur and High Net Worth Individual. It offers a reasonable proposition for founder / entrepreneur (score: 44/100). It offers a reasonable proposition for high net worth individual (score: 41/100). It scores lower for founder / entrepreneur and high net worth individual and digital nomad and freelancer, who may find other jurisdictions more suitable for their specific requirements.