Japan is set to launch a significant update to its immigration policies with the introduction of a new visa category, the Digital Nomad Visa, which becomes effective on 31 March 2024. The revised Immigration Control and Refugee Recognition Act (ICRR) paves the way for foreign nationals to live and work remotely in Japan for up to six months within a one-year period. The visa allows individuals to work for foreign companies without the need for a Certificate of Eligibility (COE)—a requirement for most work visas in Japan.
Streamlined Application Process
Unlike traditional work visas, the Digital Nomad Visa does not require applicants to obtain a COE, streamlining the process significantly. Foreign nationals can directly apply at the Embassy of Japan in their home country, eliminating the lengthy pre-application process associated with securing the COE. This unique visa category targets those working under employment contracts with organizations based outside Japan, offering greater flexibility for remote workers.
Ineligible for the visa are foreign nationals currently working under employment agreements with Japanese entities. The visa’s six-month stay is non-renewable within the same year, though individuals can reapply after six months have passed since the expiration of their last Digital Nomad Visa.
Criteria for Qualification
Japan’s Immigration Services Agency has outlined specific requirements for those applying for the new visa. These include:
Income: Applicants must demonstrate an annual income of at least JPY 10 million (approximately USD 68,000) and provide documentation to verify this, such as a certificate of income or tax returns.
Insurance: Applicants are also required to have insurance coverage of at least JPY 10 million for death, injury, or illness during their stay in Japan. Documentation proving this coverage must be submitted as part of the visa application process.
Tax Treaty Countries: The applicant must be a national of one of the countries with which Japan has a tax treaty or a reciprocal tax agreement, ensuring favorable tax conditions for visa holders.
Short-Term Stay vs. Digital Nomad Visa
Those entering Japan under the short-term stay status—available to nationals of specific countries—can engage in activities like tourism, business meetings, or family visits. Digital Nomad Visa holders, however, are granted permission to work remotely for their foreign employers while also participating in business-related activities, such as attending conferences or signing contracts. Unlike short-term stay visitors, Digital Nomad Visa holders can engage in remote work and business services using information and communication technology (ICT), provided these activities don’t necessitate physical presence in Japan.
However, individuals who secure employment with a Japanese company while on a short-term or Digital Nomad Visa cannot switch to a regular work visa without following the formal process.
Guidelines for Dependents
The new visa category also extends to dependents, allowing spouses and children of Digital Nomad Visa holders to accompany them in Japan. Dependents must also meet the insurance requirement, ensuring coverage of JPY 10 million for death, injury, or illness during their stay. This provision enables families to stay together while a parent or partner works remotely in Japan.
While dependents are allowed to engage in daily activities, they cannot work unless they apply for a separate visa permitting employment within Japan.
Re-Entry and Renewal Restrictions
Holders of the Digital Nomad Visa can leave and re-enter Japan during the six-month period under normal re-entry procedures. However, the visa itself is non-renewable. Once it expires, applicants must wait six months before applying for a new one, preventing consecutive long-term stays in Japan under this visa category.
The decision to bypass the COE requirement is expected to speed up the visa application process, making it easier for companies to deploy employees to Japan for remote work while allowing them to immerse themselves in Japanese culture. This visa is also expected to benefit spouses of workers on regular work visas in Japan, enabling them to work remotely for companies in their home countries.
Impact on the Global Workforce and Businesses
As the global workforce increasingly embraces remote work, Japan’s Digital Nomad Visa provides an attractive option for professionals seeking to balance work and travel. By simplifying the application process and allowing foreign nationals to work remotely without a COE, the visa makes Japan an accessible destination for digital nomads.
However, businesses and individuals should be aware of potential tax implications. Since the visa allows for income earned from foreign entities, both Japan and the visa holder’s home country may impose tax obligations. These should be evaluated carefully before applying.
Countries Eligible for the Visa
To qualify for the Digital Nomad Visa, applicants must be citizens of specific countries. These include Australia, the United States, Canada, the United Kingdom, and most European Union nations. Additionally, nationals from countries like Brazil, Mexico, Israel, and Singapore are eligible. Japan has established a reciprocal tax agreement with these countries to ensure favorable tax conditions for visa holders.
This new visa category offers flexibility for remote workers from around the world, aligning with Japan’s broader goals of enhancing its appeal to foreign professionals while maintaining stringent immigration controls.
Japan’s Digital Nomad Visa is a groundbreaking move that opens the door for remote workers eager to experience life in Japan while staying connected to their foreign employers. With a streamlined application process, attractive benefits, and strict guidelines, it’s poised to become a key tool in attracting digital talent. As businesses adapt to a post-pandemic world, this visa offers new opportunities for companies and individuals alike, though careful attention to tax and insurance requirements will be necessary to navigate the regulatory landscape.