Japan: Digital Nomad Visa to be launched on March 31, 2024

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The Immigration Control and Refugee Recognition Act (ICRR) was amended on March 31, 2024, introducing a new visa category, the so-called “Digital Nomad Visa,” the guidelines for which have become clearer in recent months. The Digital Nomad Visa essentially allows foreigners to stay in Japan for up to six months (out of a year) and work remotely for a foreign company under certain conditions.

In principle, foreigners who wish to work in Japan must first obtain a Certificate of Eligibility (COE) at the Immigration Bureau of Japan before applying for a work visa at the Japanese Embassy in their home country. In contrast, the Digital Nomad Visa does not require a COE because it involves activities carried out under an employment contract with a company or other organization in accordance with foreign laws and regulations. In other words, Digital Nomad Visa applicants only need to apply at the Japanese Embassy in their home country without first obtaining a COE.

The Immigration Services Agency provides the following summary of the eligibility criteria for the Digital Nomad Visa on its website:

• Those who are currently employed in Japan under an employment agreement with a Japanese entity are not eligible for a digital nomad visa.
• Applicants may stay in Japan for no more than six months within a twelve-month period beginning or ending on any day between January 1 and December 31 of the year in which they enter Japan. The six-month period is calculated on a continuous basis, not cumulatively.
• The six-month stay period is not renewable, and applicants can apply for another Digital Nomad Visa six months after the expiration of the previous one.
• The applicant is a national of one of the designated countries¹ Japan has concluded tax treaties² or a foreign country specified in Article 2 of the “Order for the Enforcement of the Law on Exemption from Income Tax, etc. Based on the Principle of Reciprocity of Income of Foreign Residents, etc.” (Cabinet Order No. 227 of 1962).
• Applicants must have an annual income of at least 10 million yen at the time of application and must provide documentary evidence (e.g., income tax certificates, bank records, etc.).
• Applicants must hold insurance of at least 10 million yen to cover death, injury or illness during their stay in Japan, and provide documentary evidence of the existence of such insurance (e.g., a copy of the terms and conditions issued by the insurance company, etc.).

People who hold a temporary residence permit that is available to nationals of certain countries³ The following table lists the activities that can be performed by a Digital Nomad visa holder:

If an individual enters Japan on a short-term residence or digital nomad visa and is employed by a local Japanese company, the applicant cannot apply for a change of status in Japan and must obtain a relevant work visa in accordance with prescribed procedures.

2.1 Dependent Activities

Dependents (spouse and/or children) of Digital Nomad Visa holders, if they are citizens of certain countries⁴ As long as each person has at least 10 million yen of insurance for death, injury or illness while in Japan, they can carry out their daily activities in Japan.

2.2 Other Notes

Digital Nomad Visa holders may leave and re-enter Japan through the normal re-entry process within the permitted six-month period. Although, as mentioned above, Digital Nomad Visas cannot be extended, previous holders may apply for a new visa six months after their most recent Digital Nomad Visa expires.

Skipping the COE process is expected to significantly speed up the processing of the Digital Nomad Visa compared to the time required to obtain a regular work visa. As a result, companies in other countries can use this visa to allow their employees to enter Japan more quickly and smoothly and work remotely for their home company while becoming familiar with daily life in Japan. The visa also allows spouses of employees seconded to Japanese entities under a regular work visa to work remotely for the spouse’s home company for a period of time after entering Japan.

As this visa category is still new, businesses looking to take advantage of it should monitor developments closely. Please note that this visa holder may face tax implications both in Japan and in their home country, which should be carefully considered.

1 Australia, Austria, Belgium, Brazil, Brunei, Bulgaria, Canada, Chile, Croatia, Czech Republic, Denmark, Estonia, Finland, France, Germany, Hong Kong, Hungary, Iceland, Indonesia, Ireland, Israel, Italy, Latvia, Lithuania, Luxembourg, Malaysia, Mexico, Netherlands, New Zealand, Norway, Poland, Portugal, Qatar, South Korea, Romania, Serbia, Singapore, Slovakia, Slovenia, Spain, Sweden, Switzerland, Taiwan, Thailand, Turkey, United Arab Emirates, United Kingdom, United States or Uruguay (Appendix 14).

2 Tax treaties as defined in Article 2, Paragraph 1 of the Act on Special Provisions for the Implementation of Tax Treaties, etc. under the Income Tax Act, the Corporate Tax Act, and the Local Tax Act (Act No. 46 of 1969).

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4 Andorra, Australia, Austria, Argentina, Bahamas, Barbados, Belgium, Brazil, Brunei, Bulgaria, Canada, Chile, Costa Rica, Croatia, Cyprus, Czech Republic, Denmark, Dominican Republic, El Salvador, Estonia, Finland, France, Germany, Greece, Guatemala, Hong Kong, Hungary, Iceland, Indonesia, Ireland, Israel, Italy, Latvia, Lithuania, Luxembourg, Malaysia, Mexico, Netherlands, New Zealand, North Macedonia, Norway, Poland, Portugal, Qatar, Republic of Korea, Romania, San Marino, Serbia, Singapore, Slovakia, Slovenia, Spain, Suriname, Sweden, Switzerland, Taiwan, Thailand, Tunisia, Turkey, United Arab Emirates, United Kingdom, United States or Uruguay (Appendix 15).