Leaving Japan: Tax and Resident Registration Checklist Before and After Departure [2026] | Employees, Company Owners, Sole Proprietors

October 20, 2026

Taiga Sato

When you leave Japan, your tax and resident registration procedures all turn on one question: when do you become a non-resident of Japan? If you leave Japan intending to live abroad for one year or longer, you generally become a non-resident for Japanese income tax purposes from the day you depart, and from then on Japan taxes only income that arises in Japan (Japan-source income). Local inhabitant tax, on the other hand, is levied by the municipality where you have your address on January 1, so even if you leave partway through the year, you owe that fiscal year's inhabitant tax in full. On top of that, several procedures fall due at the moment you leave: the tax return for your year of departure, notifying a tax agent, NISA and iDeCo procedures, and the exit tax for people holding securities worth JPY 100 million or more. Based on information published by the National Tax Agency, the Ministry of Internal Affairs and Communications, municipalities and other official sources, this article covers the following points for employees, company owners and sole proprietors who are leaving Japan, whether they are Japanese nationals or foreign residents who were tax residents of Japan.

*Amounts and rules are as of September 30, 2026. This article is an English version of our Japanese guide, adapted for foreign residents of Japan and international investors.

A timeline of the procedures before and after departure (checklist)
The moving-out notice for resident registration, and what changes when you file it
Income tax and inhabitant tax for the year of departure, and the tax agent
How your Japanese income (rent, dividends, director's fees, pensions) is taxed after you become a non-resident
Exit tax, NISA, iDeCo, the statement of overseas assets and inheritance tax
Running a Japanese company from abroad, and closing or continuing a sole proprietorship

*This article is a general explanation based on information published as of September 30, 2026 (National Tax Agency, Ministry of Internal Affairs and Communications, Digital Agency, Japan Agency for Local Authority Information Systems, Ministry of Justice, Financial Services Agency, National Pension Fund Association, National Police Agency, municipalities and others). Whether you are a resident or non-resident, and how much tax you owe, depends on your individual circumstances. Please confirm filing and payment decisions with the tax office or a licensed tax accountant.

Contents

Summary: what to do before departure, in chronological order
Moving-out notice: required for stays of one year or more, and what it changes
Income tax: you become a non-resident from the day you leave
Inhabitant tax: set by your address on January 1, and not reduced if you leave mid-year
Japanese income after becoming a non-resident: what ends with withholding and what needs a return
Asset procedures: exit tax, NISA, iDeCo, statement of overseas assets, inheritance tax
Company owners: running a Japanese company from abroad
Sole proprietors: close the business or keep it running in Japan
FAQ
Summary: fix the date you become a non-resident and work backwards

Summary: what to do before departure, in chronological order

Many of the procedures for leaving Japan have deadlines on the day of departure or the day before. Taking an employee as an example, the main procedures in chronological order are as follows.

Main procedures before and after leaving Japan (as of September 30, 2026)
When	Procedure	Where / with whom
Up to 6 months before departure	Finalize your visa and housing in the destination country. If you hold securities worth JPY 100 million or more (including shares in your own company): value the shares, estimate the exit tax, and prepare for a tax deferral and the collateral it requires	—
1–2 months before departure	Choose a tax agent (if you will need to file or pay tax in Japan after leaving). Check how NISA, iDeCo, bank and brokerage accounts treat non-residents	Family member, tax accountant, etc. / financial institutions
From 14 days before the planned departure date (in most municipalities)	Moving-out notice for resident registration (in principle, before departure)	Municipal office
By the day before departure	For Japanese nationals: procedure to keep using your My Number Card (if you will use it abroad). NISA "notification of continued application" or "notification of departure"	Municipal office / financial institution
By the day of departure	"Notification of appointment/dismissal of a tax agent for income tax and consumption tax" (mandatory if you want an exit tax deferral)	Tax office
By the day of departure	Tax agent notification for inhabitant tax (if inhabitant tax remains payable)	Municipal office
By the day of departure	Employees leaving Japan while still employed (employment income of JPY 20 million or less) receive year-end adjustment from their employer. If you do not appoint a tax agent, file your return (quasi-final return) and pay the tax before departure	Employer / tax office
After departure	If you were enrolled in National Health Insurance and the National Pension, you lose that coverage (Japanese nationals can join the National Pension voluntarily). For iDeCo, unless you enroll voluntarily, you become an "investment instructor" (no new contributions)	Municipal office, pension office / financial institution
By March 15 of the following year	If you appointed a tax agent, file the return for your year of departure (including any exit tax) through the agent. Sole proprietors who must file a consumption tax return have until March 31	Tax office

Pension procedures for people who are already receiving a Japanese pension, or who move abroad before receiving it (notifications to the Japan Pension Service, the annual proof-of-life report and voluntary enrollment), are explained in detail in Can you move abroad on a pension? Procedures before and after you start receiving it.

Moving-out notice: required for stays of one year or more, and what it changes

If you will live abroad for one year or longer, you need to file a moving-out notice (notice of moving abroad) for your resident registration. Most municipalities accept the notice from 14 days before the planned departure date (in principle, you file it before you leave). For overseas business trips or study of less than one year, the general rule is to keep your resident registration and not file the notice.

What changes when you file the moving-out notice (based on guidance from Shinagawa, Meguro, Shibuya and other wards)
Item	After moving out
Registered seal (inkan)	Cancelled as of the planned moving-out date. When you later need a substitute for a seal certificate (for example, to sell real estate or for company registrations), Japanese nationals obtain a signature certificate from a Japanese embassy or consulate (equivalent to JPY 1,700 per copy; you must appear in person)
National Health Insurance	Coverage ends the day after the planned moving-out date. You cannot join National Health Insurance during temporary visits to Japan
National Pension	Enrollment is no longer mandatory. Japanese nationals aged 20 to under 65 can enroll voluntarily
My Number Card	For Japanese nationals: since May 27, 2024, you can keep using the card after moving abroad if you complete the continued-use procedure (by the day before the planned departure date). The domestic electronic certificate expires and a new electronic certificate for use abroad is issued
Inhabitant tax	If you have no address in Japan on January 1 of the following year, you are not taxed from the following fiscal year
Official certificates	You can no longer obtain a copy of your resident record (you can obtain a copy of the removed record). For Japanese nationals, proof of an overseas address is a certificate of residence issued by a Japanese embassy or consulate (conditions include having lived locally for three months or more)

Some people think that keeping their resident registration while living abroad lets them keep National Health Insurance and makes things easier, but a moving-out notice is required if you will live abroad for one year or longer. If you keep your registration, National Health Insurance premiums, National Pension contributions and inhabitant tax also continue. In addition, resident or non-resident status for tax purposes is determined by the facts of your life, not by your resident registration, so keeping or removing your registration does not by itself decide your tax treatment (see the next section).

Income tax: you become a non-resident from the day you leave

Resident or non-resident

Under the Income Tax Act, a "resident" is a person who has a domicile in Japan, or who has had a residence in Japan continuously for one year or more up to the present; everyone else is a "non-resident". A person who takes up an occupation that normally requires living abroad continuously for one year or more is presumed not to have a domicile in Japan. In its published Q&A, the National Tax Agency explains that a person who leaves Japan for an overseas assignment planned from the outset to last one year or more is treated as a non-resident from the time of departure.

The common saying that "you are a non-resident if you spend more than half the year (183 days) abroad" is not the test used for Japanese income tax. The National Tax Agency states clearly that you may be a resident of Japan even if you stayed abroad for 183 days or more. The determination is made comprehensively based on where the center of your life is (where your family lives, your occupation, where your assets are, and so on).

The tax return for the year of departure and the tax agent

Income from January 1 of the year of departure up to the day you leave is reported and taxed as a resident. There are two ways to do this.

How to file for the year of departure (National Tax Agency)
Method	Filing and payment deadline	Suitable for
Leave without appointing a tax agent	Complete the return (quasi-final return) and payment by the time you leave	People who have all their income and deduction documents before departure
Appoint a tax agent	Submit the "notification of appointment/dismissal of a tax agent for income tax and consumption tax" by the day of departure. The return is filed through the tax agent by the normal deadline (March 15 of the following year)	People who will still have income in Japan after leaving, such as rental income, and must file every year

The tax agent can be an individual or a company. You can ask a family member or engage a licensed tax accountant. People who will keep renting out property in Japan after leaving, or who take an exit tax deferral, will have filings and notifications in Japan every year, so in practice it makes sense to appoint a tax agent. Director's fees from a Japanese company paid to a non-resident are taxed by withholding (20.42%) and that alone does not create a filing obligation.

If an employee leaves Japan while still employed, for a planned stay of one year or more, and their employment income for that year is JPY 20 million or less, they receive year-end adjustment from their employer by the day of departure. People who resign before leaving usually do not receive year-end adjustment, so the tax withheld (often resulting in a refund) is settled by filing a return before departure or through a tax agent. Deductions such as the life insurance premium deduction apply to amounts paid up to the day of departure. People who would have to file anyway, such as those with non-employment income over JPY 200,000 or employment income over JPY 20 million, file using one of the two methods in the table above.

Inhabitant tax: set by your address on January 1, and not reduced if you leave mid-year

Inhabitant tax is levied by the municipality where you have your address on January 1 of that year, based on your income for the previous year. Therefore, leaving Japan partway through the year does not change that fiscal year's inhabitant tax. Conversely, if you file the moving-out notice by December 31 and have no address in Japan on January 1 of the following year, you are not charged inhabitant tax for the following fiscal year.

Treatment of inhabitant tax (based on guidance from Chuo and Shinagawa wards)
Case	Inhabitant tax
A year in which you have an address in Japan on January 1	Taxed in full based on the previous year's income. The amount due after departure is paid through your tax agent
An employee who resigns and leaves mid-year	The rest of the fiscal year's tax is deducted in a lump sum from the final salary, or you switch to paying it yourself (ordinary collection)
A year in which you have no address in Japan on January 1	Not taxed

If inhabitant tax remains payable, submit a tax agent notification to the municipality. This is separate from the income tax agent notification, so if you need both, file both. Whether you leave in December or January can make a difference of one full year of inhabitant tax.

Japanese income after becoming a non-resident: what ends with withholding and what needs a return

Japan taxes non-residents only on income that arises in Japan (Japan-source income). Most of it is subject to withholding at the time of payment, and depending on the type of income, a tax return may also be required.

Main types of Japan-source income for non-residents and withholding tax rates (National Tax Agency Tax Answer No. 2884 and others; laws as of April 1, 2026)
Income	Withholding rate	Notes
Rent from real estate in Japan	20.42%	Withheld by the tenant. However, no withholding applies when an individual rents the property as a home for themselves or their relatives. A non-resident's real estate income also requires a tax return
Interest on deposits	15.315%	Taxation ends with withholding
Dividends on listed shares	15.315%	Excluding major shareholders holding 3% or more of issued shares. Other dividends: 20.42%
Director's fees from a Japanese company	20.42%	Treated as Japan-source income even if you work abroad. However, no withholding is required if you work permanently abroad as an employee of that company
Public pensions	20.42%	Taxed on the pension amount minus JPY 50,000 per month (JPY 95,000 for those aged 65 or over) multiplied by the number of months. Some countries are exempt under a tax treaty

If you live in a country that has a tax treaty with Japan, the treaty may reduce or exempt the tax (you submit an "application form for income tax convention" via the payer). Withholding on rent paid to non-residents who let property in Japan, and ways to avoid it, are explained in Withholding tax when a non-resident rents out real estate in Japan.

In your destination country, once you become a tax resident there, its taxes will generally apply. Even after you become a non-resident of Japan, the scope of taxation in the destination country (worldwide income, domestic income only, or only amounts remitted) varies widely from country to country. The tax systems of destination countries are explained in our country articles (Thailand, Malaysia, Singapore, Portugal, Greece). Countries with no income tax or that do not tax foreign income are compared in Ranking of low-tax countries.

Asset procedures: exit tax, NISA, iDeCo, statement of overseas assets, inheritance tax

Exit tax (taxation on departure from Japan)

If, at the time of departure, you hold securities such as shares and investment trusts worth JPY 100 million or more in total, and you had a domicile or residence in Japan for more than five years within the ten years before departure, you are treated as having sold those assets at the time of departure, and income tax is charged on the unrealized gains. This covers not only listed shares but also unlisted shares in a company you run.

Key points of the exit tax (National Tax Agency Tax Answer No. 1478)
Item	Details
Covered assets	Securities, interests in silent partnership (tokumei kumiai) contracts, unsettled margin and derivative transactions, etc. JPY 100 million or more in total
Tax	15.315% (income tax and special reconstruction income tax) on the unrealized gain (the difference between the value at departure and the acquisition cost), as capital gains on shares
Residence period requirement	More than five years of domicile or residence in Japan within the ten years before departure
Tax deferral	If you notify a tax agent by the time of departure and provide collateral by the filing deadline, payment can be deferred for five years (up to ten years if you file for an extension). During the deferral you must submit a "notification of continued application" every year; if you do not, the deferral ends. Interest tax is charged according to the deferral period
If you return to Japan	If you return within five years of departure (ten years if the deferral was extended) and still hold the assets, the tax can be cancelled by filing a request for correction within four months of your return

NISA

NISA is a scheme for residents of Japan. How it is treated when you move abroad depends on the reason for departure.

NISA when moving abroad (based on guidance from the Financial Services Agency and the National Tax Agency)
Reason for departure	Procedure	Afterwards
Temporary departure for unavoidable reasons, such as a transfer order from your employer	Submit a "notification of continued application" to the financial institution by the day before departure	You can keep holding the investments tax-free (no new purchases while abroad). If you do not submit a notification of return by December 31 of the year in which five years have passed since submission, the account is treated as closed
Other cases (relocation, etc.)	Submit a "notification of departure" to the financial institution	The NISA account is closed, and the holdings are moved to a taxable account (specified account or general account)

Moving abroad of your own accord generally falls under the second row. When holdings move from NISA to a taxable account, their market value on the transfer date becomes the acquisition cost, so gains that accrued inside NISA are not taxed in Japan. The practical problem is that many brokerages do not allow non-residents to keep a taxable account (specified or general account). Before leaving, check with your financial institution whether you can keep the account, or whether you will need to sell or transfer the holdings. Few financial institutions support the continued-application route in the first row. Points to watch about the NISA scheme itself are explained in Is NISA really all-purpose?.

iDeCo

Since May 2022, residents abroad who are voluntarily enrolled in the National Pension can join iDeCo. If you do not enroll voluntarily, you can no longer make iDeCo contributions and become an "investment instructor" who only continues to direct the investments. Japanese nationals living abroad aged 20 to under 60 also cannot receive a lump-sum withdrawal payment.

Statement of overseas assets, statement of assets and liabilities, and inheritance tax

The statement of overseas assets must be submitted by June 30 of the following year by residents holding overseas assets of more than JPY 50 million as of December 31. The statement of assets and liabilities applies to people with income over JPY 20 million and assets of JPY 300 million or more (or securities of JPY 100 million or more), or to residents with assets of JPY 1 billion or more. If you were required to submit these at the end of the year before you move, the deadline for that year may fall after your departure depending on when you leave, so check with the tax office whether you need to submit through your tax agent.

Moving your domicile abroad does not easily take you out of the scope of Japanese inheritance tax. For Japanese nationals: if the deceased (a Japanese national) had a domicile in Japan at any time within ten years before death, Japanese inheritance tax generally applies including to assets outside Japan, even if the heirs live abroad. A similar ten-year rule applies to lifetime gifts. "If I live abroad, there is no inheritance tax" does not hold, at least for the first ten years after moving. Countries without inheritance tax, and the conditions under which overseas assets fall outside Japanese inheritance tax, are explained in detail in Countries with no inheritance tax and the ten-year rule.

Company owners: running a Japanese company from abroad

The representative director of a Japanese company can keep running the company after moving abroad. Since March 16, 2015, the Ministry of Justice has accepted applications for incorporation and other registrations even when none of the representative directors has an address in Japan.

Main issues when the owner of a Japanese company moves abroad
Issue	Details
Withholding on director's fees	Director's fees from a Japanese company are Japan-source income even if you work abroad. 20.42% is withheld on each payment (except where you work permanently abroad as an employee). If the destination country also taxes the fees, check how double taxation is relieved under the tax treaty and the destination country's tax system
Your company's shares and the exit tax	Unlisted shares in your own company are "securities" for exit tax purposes. If, combined with listed shares and other securities, they total JPY 100 million or more, the exit tax applies. The company's share value needs to be checked
Registration of the representative director's change of address	The representative director's address is a registered item, so register the change within two weeks of moving abroad
Substitute for a seal certificate	Your registered seal is cancelled when you move out of Japan. When a seal certificate is needed, for example for a registration application, use a signature certificate from a Japanese embassy or consulate (Japanese nationals) or a signature certification by a local notary
Social insurance	If you keep receiving director's fees from the Japanese company, whether your health insurance and Employees' Pension Insurance coverage continues depends on how you actually work. Check with the pension office
Head office and corporate governance	The head office stays in Japan. How shareholders' meetings and board meetings are held, and where the company is effectively managed, can affect corporate tax determinations in the destination country, so check with a professional there
Inheritance tax	If you die within ten years of moving (the same applies to gifts), Japanese inheritance and gift tax may apply to your worldwide assets, including your company's shares

The most important issue for company owners is to estimate the exit tax before moving and decide whether to use the tax deferral. If you leave while holding shares in your own company with large unrealized gains, you are taxed on a valuation gain that brings in no cash. To obtain the deferral, you must notify a tax agent by the time of departure. Issues for owners with substantial assets are also covered in The stricter minimum tax and the exit tax.

Sole proprietors: close the business or keep it running in Japan

When a sole proprietor moves abroad, the procedures differ depending on whether you close your Japanese business or keep running it from abroad.

Procedures for sole proprietors (National Tax Agency)
Choice	Main procedures	Deadline
Close the business	"Notification of commencement or closure of a sole proprietorship"	By the filing deadline for the year of closure
Close the business (blue return filers)	"Notification of withdrawal from blue return filing for income tax"	By the filing deadline for the year of withdrawal
Close the business (consumption tax payers)	"Notification of business closure"	Promptly after closing the business
Close the business (invoice-registered businesses)	Cancellation of registration as a qualified invoice issuer (submitting the consumption tax notification of business closure also ends the registration)	Together with the notification of business closure
Close the business (individual enterprise tax)	Notification of closure to the prefectural tax office	As set by each prefecture
Keep a business office in Japan and continue	Notify a tax agent and keep filing annual returns. Income attributable to an office or other permanent establishment in Japan is taxed in Japan even for non-residents. Foreign businesses that keep their invoice registration need a tax agent	By the day of departure (tax agent notification)
Close your base in Japan and work for Japanese clients from the destination country	Complete the closure procedures for the Japanese business. Fees for work performed in the destination country are generally not Japan-source income and are usually taxed in the destination country (fees that are royalties, for example, may be subject to Japanese withholding)	Same as the closure procedures above

If you continue working for Japanese clients from your destination country, whether the fees are taxed in Japan or in the destination country depends on where the work is performed, whether a business base remains in Japan, and the terms of the contract (services or royalties for copyright, etc.). Clients often ask whether they should still withhold tax after you become a non-resident, so confirm with a tax accountant before leaving and let your clients know, so that nothing is held up.

FAQ

If I remove my resident registration, will I stop paying Japanese tax?

Resident registration and resident status for tax purposes are separate. Income tax status is decided by where the center of your life is, and you may still be treated as a resident if the center of your life remains in Japan even after removing your registration. Also, even as a non-resident, you are taxed on Japan-source income such as rent, dividends, director's fees and pensions from Japan. Inhabitant tax is determined by your address on January 1, so you owe the full amount for the fiscal year in which you leave.

Do I become a non-resident if I spend 183 days or more abroad?

No. 183 days is not the test for Japanese income tax, and the National Tax Agency explains that you may be a resident even if you spent 183 days or more abroad. If you leave Japan to live abroad for a planned period of one year or more, you are in principle treated as a non-resident from the time of departure. Note that many destination countries do use 183 days as their own residence test.

When is the tax return for the year of departure due?

If you do not appoint a tax agent, you must complete the return and payment by the time you leave. If you notify a tax agent, the return is filed through the agent by the normal deadline (March 15 of the following year). Employees receive year-end adjustment from their employer by the day of departure.

Can I keep my NISA after moving abroad?

If the departure is temporary and for unavoidable reasons, such as a transfer order from your employer, you can submit a notification of continued application and keep the holdings tax-free for up to about five years (no new purchases). If you move of your own accord, you will in principle submit a notification of departure, and the NISA account is closed and moved to a taxable account.

What happens to my Japanese driver's license after I move abroad?

If you do not renew it during the renewal period, it expires. Before going abroad, you can renew it even before the renewal period (early renewal). You can also renew it during a temporary visit to Japan, using a base of life in Japan (such as your family home) as your address. To drive abroad, obtain an International Driving Permit based on your Japanese license.

Can I use my Japanese bank account after moving abroad?

How banks treat accounts held by non-residents varies; some restrict transactions or ask you to close the account. For accounts you use to receive pensions or rent or to pay insurance premiums, tell the bank before leaving that you will become a non-resident and confirm whether you can keep using them. The treatment at major banks and brokerages is listed in What happens to your Japanese bank account when you move abroad?.

Summary: fix the date you become a non-resident and work backwards

Tax and resident registration procedures for leaving Japan become manageable if you work backwards from three anchors: (1) file a moving-out notice if you will live abroad for one year or more, (2) you become a non-resident for income tax from the day you leave, and (3) inhabitant tax is set by your address on January 1. By the day of departure, complete year-end adjustment or your tax return, the tax agent notification and the NISA notification, and if you hold securities worth JPY 100 million or more (including shares in your own company), estimate the exit tax and decide on the deferral first. Even as a non-resident, Japanese tax applies to rent, dividends, director's fees and pensions from Japan, and for ten years after moving, inheritance tax may extend to assets outside Japan.

Our office handles consultations on moving abroad, permanent residence and citizenship. For moving abroad, we can help you choose a visa for your destination and organize the order of procedures before and after departure (we do not prepare tax returns or advise on tax amounts, as these are the domain of licensed tax accountants). We also handle English translations of documents such as family register (koseki) certificates required for visa applications in your destination, certification procedures such as apostilles and notarization (in Japanese), and obtaining family register certificates from abroad (in Japanese). We can assist in English and Japanese.

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References (primary sources)

The rules in this article are based on information published as of September 30, 2026 (including the National Tax Agency's "laws as of April 1, 2026").

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