Longer-term residents may get an “Unwanted Gift from Japan”

After the 1st April 2017, foreign nationals who have lived in Japan for more than 10 years out of the last 15, will continue to be subject to Japanese inheritance and gift tax on all their global assets. But this will no longer be the case for short-term residents: their position will improve.

Longer-term residents will also be subject to a new rule: if they leave Japan after this date they will be liable to pay these taxes for up to five years after they leave.

Foreign nationals whose visa status is a permanent resident, spouse of a permanent resident, or a spouse of a Japanese national, will be subject to these taxes irrespective of their length of residency.

This could have a major impact on families like Jane Smith. Our manga tells how following the death of her husband John, she had to sell the family home in the UK to raise the funds to pay the inheritance tax bill even though they had left Japan two years before. Have a look here to see the full story:

Manga - Unwanted Gifts from Japan: the negative impact of the April 2017 changes: English or Japanese