Japan: Effective March 31, 2024, the Digital Nomad Visa is introduced.

Digital Nomad Visa – With effect from March 31, 2024, the Immigration Control and Refugee Recognition Act (ICRR) was changed to create a new visa category known as the “Digital Nomad Visa,” the details of which have been made more apparent 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.

Generally speaking, a foreign citizen who wants to work in Japan has to apply for a work visa at the Japanese Embassy in their home country after obtaining a Certificate of Eligibility (COE) from a Japan Immigration office. In contrast, as far as actions based on an employment contract with a corporation or other organization established in compliance with the rules and regulations of a foreign nation are concerned, the Digital Nomad Visa does not call for a COE. That is, an applicant for a Digital Nomad Visa does not need to wait to receive a COE; instead, they can apply directly at the Japanese Embassy in their nation of residence.

On its website, the Immigration Services Agency has summarized the requirements for the Digital Nomad Visa as follows:

A Digital Nomad Visa is not available to anyone who is currently employed in Japan under a contract with a Japanese company.

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 applicant may apply for a new Digital Nomad Visa six months after the expiration of the current one, as the six-month stay duration is non-renewable.

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.).

During their stay in Japan, the applicant must have insurance coverage for at least JPY 10 million against illness, accident, or death. The availability of this coverage is contingent upon the submission of supporting documentation, such as a copy of the terms and conditions provided by the insurer.

1. A comparison with transient visits

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.

• Activities that are allowed during a brief visit

Traveling, sight-seeing, passing through, amateur competition and contest participation, visiting friends, acquaintances, and/or relatives, taking part in seminars and sessions hosted by companies or educational institutions, giving lectures and speeches without charging for them, giving business trips and attending conferences and/or business-related events, negotiating business matters, signing contracts, offering after-sales support, advertising, and market research, etc.

• Things that holders of Digital Nomad Visas are allowed to do

Apart from the permitted activities for a brief visit, work from home and/or remote work involving the use of ICT to provide services for payment or sell goods, etc. are allowed (not services that cannot be rendered or sold without entering Japan).

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. Relatives and more remarks

2.1 Activities that rely

Dependents (spouses and/or children) of individuals holding Digital Nomad Visas and who are citizens of one of the designated countries are allowed to carry out regular activities in Japan, provided that each individual is also insured for at least JPY 10 million against illness, accident, or death while in Japan.

2.2 Other notes

Holders of a digital nomad visa are free to depart and return to Japan during the allotted six months by following standard re-entry procedures. As previously stated, Digital Nomad Visas cannot be renewed; however, a prior holder may reapply for a new one six months after the expiration of their current one.

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.

Businesses who desire to use this new visa category should keep a careful eye on any developments that may be relevant. 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).