Japan’s low birth rate and aging population are impacting the future of the country’s labor market. In a groundbreaking move, Japan has introduced a specific work visa for digital nomads, following the lead of countries like Spain, Portugal, Bali, and the United Arab Emirates.
A six-month visa for digital nomads. The new Designated Activities visa allows digital nomads and their families to experience Japanese culture while working remotely for up to six months. Previously, this wasn’t allowed under cultural visas and the 90-day visa-exempt tourist stay for U.S. citizens.
The Japanese government’s requirements aim to attract skilled digital nomads working remotely for companies in other countries.
Eligibility conditions. Japan has historically maintained a protectionist stance regarding work visas, but the recent initiative indicates that the Asian country is exploring new ways to boost its economy by attracting foreign professionals.
However, the Japanese government has established strict eligibility requirements for obtaining the visa:
- Applicants must be citizens of a country listed as having fiscal co-responsibility, which includes the U.S.
- A valid passport is required, with at least six months remaining before expiration.
- Documentation must be presented that accredits the professional activity planned during the stay in Japan.
- Applicants must demonstrate a minimum annual income of $62,000.
- Private medical insurance must be obtained for the entire duration of the stay.
- Proof of remote work experience before arriving in Japan is essential. This can include being the owner of a business, an employee, or a freelance professional.
Dodging the gentrification bullet. The Japanese immigration service has made it clear that the digital nomad visa will only be valid for six months without the option for an extension. This policy aims to prevent the worsening of tourist overcrowding that major cities in Japan are already experiencing.
By limiting the duration of stays to six months, Japan also seeks to avoid the gradual gentrification that some European cities have faced as they became popular destinations for digital nomads. This gentrification has led to challenges for local populations, particularly regarding rising housing costs.
Don’t get too comfortable. The Japanese government wants to make it clear to applicants for the Designated Activities visa that their stay in Japan is temporary. As a result, digital nomads won’t be able to open bank accounts with Japanese entities or rent long-term accommodations, at least not beyond the duration of their stay.
Since digital nomads don’t have a labor or economic connection to the country, they don’t acquire resident status. Consequently, according to advisory firm Get Golden Visa, they’re exempt from paying taxes on their income generated in Japan, although they’re still responsible for taxes on goods consumed.
Image | Ozgu Ozden
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