Japan: Launch of Digital Nomad Visa effective 31 March 2024

In brief

The Immigration Control and Refugee Recognition Act (ICRR) was amended effective on 31 March 2024 to introduce a new visa category so-called Digital Nomad Visa, the guidelines for which became clearer in recent months. The Digital Nomad Visa essentially allows foreign nationals to stay in Japan up to six months (within a one-year period) and remotely work for foreign companies subject to certain conditions.


Contents

In principle, a foreign national who wishes to work in Japan is required to obtain a Certificate of Eligibility (COE) at a Japan Immigration office before applying for a work visa at the Embassy of Japan in the national's home country. By contrast, the Digital Nomad Visa does not require a COE as it relates to activities based on an employment contract with a corporation or other organization established in accordance with the laws and regulations of a foreign country. In other words, a Digital Nomad Visa applicant can simply apply at the Embassy of Japan in his/her home country without first obtaining a COE.

The Immigration Services Agency has provided the following summary of the qualification criteria for the Digital Nomad Visa on its website:

  • A person who is currently employed in Japan under an employment agreement with a Japanese entity is ineligible for a Digital Nomad Visa.
  • The applicant may stay in Japan for no more than six months during any twelve-month period beginning or ending on any day between 1 January and 31 December of the year in which the applicant entered Japan. The six-month period is calculated on the basis of consecutive months, not cumulative months.
  • The six-month stay period is non-renewable, and the applicant can apply for another Digital Nomad Visa after six months have passed from the expiry date of the previous Digital Nomad Visa.
  • The applicant is a national of one of the specified countries1 that Japan has concluded a tax treaty2 or a foreign country designated in Article 2 of the Enforcement Order of the Law Concerning Exemptions from Income Tax, etc. on the Basis of Reciprocity for the Income of Foreign Residents, etc. (Cabinet Order No. 227 of 1962).
  • The applicant's annual income is at least JPY 10 million at the time of the application and subject to the production of documentary evidence (e.g., a certificate of income tax, bank records, etc.).
  • The applicant must carry at least JPY 10 million in insurance coverage for death, injury or illness during the applicant's stay in Japan and the existence of such coverage is subject to the production of documentary evidence (e.g., a copy of the terms and conditions issued by the insurer, etc.)

1. Comparison with short-term stays

Those in Japan under the short-term status that can be enjoyed by nationals of certain countries3 are permitted to engage in the activities shown in the left column of the following table. Digital Nomad visa holders are permitted to engage in remote work in addition to these.

Activities permitted during a short-term stay Activities permitted for Digital Nomad Visa holders
Sightseeing, passing through, amateur participation in competitions and contests, visiting friends, acquaintances and/or relatives, participation in seminars and sessions held by educational institutions or companies, provision of lectures and speeches without remuneration, business trips including participation in conferences and/or business-related events, business-related negotiations, contract signing, provision of after-sales service, advertising and market research, etc. In addition to the activities permitted during a short-term stay, remote work and/or activities related to providing services for remuneration or sales of goods, etc. using information and communications technology (excluding those that cannot be provided or sold without entering Japan) are permitted.


Where an individual who enters Japan for a short-term stay or with a Digital Nomad Visa is employed by a local Japanese company, the applicant cannot apply for a change of status within Japan and needs to follow the prescribed procedure for obtaining the relevant work visa.

2. Dependents and other notes

2.1 Dependent activities

Dependents (spouses and/or children) of Digital Nomad Visa holders who are nationals of a specified country4 are permitted to engage in daily activities in Japan as long as each person is also covered by at least JPY 10 million in insurance for death, injury or illness while in Japan.

2.2 Other notes

Digital Nomad Visa holders are able to leave and re-enter Japan within the permitted six-month period via the normal re-entry procedures. While Digital Nomad Visas cannot be extended, as mentioned above, a previous holder can apply for a new one six months after the expiration date of their most recent Digital Nomad Visa.

Skipping the COE process is expected to greatly expedite the processing of Digital Nomad Visas when compared with the time required to obtain a regular work visa. As such, a company in another country can use this visa to enable its employees to enter Japan more quickly and smoothly and work remotely for the company in the home country while familiarizing themselves with daily life in Japan. This visa would also allow the spouse of an employee seconded to an entity in Japan under a regular work visa to work remotely for a company in the spouse's home country for some time after entering Japan.

As this visa category is new, businesses wishing to utilize it should closely monitor related developments. Please note that there may be tax implications for holders of this visa both in Japan and in their home countries which should be carefully considered.


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

2 A tax treaty as provided under Article 2, item 1, of the Law Concerning Special Provisions for the Income Tax Law, the Corporation Tax Law and the Local Tax Law Incidental to the Implementation of Tax Treaties, etc. (Law No. 46 of 1969).

3 https://www.mofa.go.jp/j_info/visit/visa/short/novisa.html

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

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