We often receive questions from foreign nationals living in Japan about how their overseas pensions and property income are taxed here. Below is a brief overview of the key points.

1. Tax residency

If you come to Japan intending to stay for one year or more, you are generally treated as a tax resident from your date of arrival, regardless of your visa type.

2. Non-permanent residents and remittances

Foreign nationals who have lived in Japan for five years or less in the past ten years are “non-permanent residents.” Their overseas income is taxed in Japan only to the extent it is paid in or remitted to Japan. Note that transfers from savings may still be treated as remittances of that year’s overseas income.

3. Overseas pensions and property

Whether an overseas pension is taxable in Japan depends on the tax treaty between Japan and the paying country, and government service pensions are often treated differently from other pensions. Rental income and gains from overseas property may be taxed in both countries, with relief available through the foreign tax credit.

Filing obligations in Japan can arise without people realising it, so it is worth checking your position early.

This article is a general overview only. The actual treatment depends on individual circumstances and the applicable tax treaty.