Income tax and resident tax are the bills everyone talks about. Inheritance and gift tax is the quiet one that can matter far more — because in Japan it can reach money and property sitting in your home country. Whether it does comes down to two things: your residence-status "table" and your years of address in Japan. Mio doesn't guess with six-figure sums; Mio reads the rule and points you to a professional. Here's the map.
Unlike some countries that tax the estate, Japan levies inheritance tax on the heir/recipient, and gift tax on the person who receives a gift. So the question "am I exposed?" is about your situation — your address, your residence status, your years in Japan — as much as the deceased's or donor's. The two taxes are deliberately linked: gift tax exists partly to stop people giving assets away to dodge inheritance tax.
Japan's residence statuses split into two appendices of the Immigration Act:
• Table 1 (Appendix 1) — activity-based statuses: most work visas, Engineer/Specialist, Intra-company Transferee, Student, and similar. These are the classic "I'm here for a job" statuses.
• Table 2 (Appendix 2) — status-based: Permanent Resident, Spouse or Child of a Japanese national, Spouse or Child of a Permanent Resident, and Long-Term Resident.
The second dial is time: how many years you have had a jūshо̄ (address / centre of living) in Japan during the 15 years before the inheritance or gift. The dividing line in the rules is 10 years.
A foreign national who holds a Table 1 status and whose period of address in Japan is 10 years or less within the past 15 years is, broadly, a "temporary resident foreigner" (ichiji kyojūsha). For such a person, Japan's official materials describe a carve-out: when they inherit or receive a gift, overseas assets are generally excluded from the Japanese tax — provided the giver/deceased is also outside Japan or a foreigner without the relevant Japan history. In plain terms: a work-visa holder who inherits a house back home from an overseas relative is typically not taxed by Japan on that overseas house. Japan-located assets, however, are always in scope, whatever your status.
Important nuance: this exception depends on both sides. If the person who died or gave the gift had strong Japan ties (for example, an address in Japan within the relevant window), the overseas-asset relief can fall away even for a Table 1 holder. The rules pair the recipient's status with the giver's status.
You generally lose the overseas-asset shield — meaning both Japan and foreign assets can be taxed — in situations such as:
• You hold a Table 2 status (PR, spouse/child of a Japanese national, spouse/child of a PR, long-term resident). These statuses do not get the temporary-resident exception.
• You are a foreigner on Table 1 but have had an address in Japan for more than 10 of the last 15 years.
• You are a Japanese national living in Japan (worldwide by default), or a Japanese national abroad who had a Japan address within the look-back window.
• The giver or deceased had qualifying Japan ties that pull overseas assets back into scope.
| Your situation | Overseas assets taxed by Japan? |
|---|---|
| Table 1 work visa, ≤10 of last 15 yrs, giver also abroad/foreign | Generally NO — Japan assets only |
| Table 1 work visa, but 10+ of last 15 yrs in Japan | Generally YES — worldwide |
| Table 2: Permanent Resident | Generally YES — worldwide |
| Table 2: Spouse/Child of Japanese national or of a PR | Generally YES — worldwide |
| Table 2: Long-Term Resident | Generally YES — worldwide |
| Any status, asset is located in Japan | YES — Japan-located assets always in scope |
| Giver/deceased had qualifying Japan ties | Can be YES even for Table 1 — pairing rule |
Directional guidance only. "Generally" means the common case; individual facts, timing, and tax treaties change outcomes. This is not tax advice.
Two reasons. First, Japan's inheritance tax is progressive and can be steep at higher values, so having overseas assets pulled into scope is not a rounding error. Second, the 10-year clock keeps running: a Table 1 holder who stays long enough can cross from "Japan assets only" into "worldwide" without noticing. If you expect a large inheritance or gift from abroad, the timing of your years in Japan — and of the transfer — can genuinely matter. Don't restructure anything on your own read of a blog; this is exactly where a licensed professional earns their fee.
Know your table: check whether your current residence status is Table 1 (activity/work) or Table 2 (PR, spouse, long-term). Count your years: tally your address time in Japan over the last 15 years. Map the giver too: the deceased's or donor's status and Japan ties are half the answer. Before any money moves — a large gift, an inheritance, or a plan to naturalise or switch to PR — talk to a licensed tax accountant (zeirishi) who handles cross-border cases, and confirm any relevant tax treaty.
Related reading: Japan's resident-tax timing shock → and, if you're heading home, the leaving-Japan pension refund →.
Mio