Thank you Tobi! It was so great being back in Japan and getting to sit down with you. I learned a lot from the great comments here too. What does it even mean to "retire" in Japan? I realized it means different things to different people at different stages of their lives. The simplest definition "stop providing labor in exchange for money" is a bit hard to achieve all in one go in Japan (unless you have Japanese family). With my clients, I explore the possibilities beyond "I work 40+ hrs per week as a full-time employee" to see if there is a compromise that both satisfies immigration requirements and brings them a happy lifestyle. As for myself, I want to get out of the rat race and do things I enjoy. This project and your kind listeners have shown me I've made a big step in the right direction!
Before moving to Japan, really really make sure you do your due diligence on Tax planning. Japan Taxation is much more aggressive than the US. If you have substantial assets, additional reporting requirements and exit tax are important things to become knowledgeable about.
Japan is not a great place to be a resident if you are wealthy. When I explain this to my clients, some of them don't care! They love it, want to be there 100% of the year, and don't mind paying. For others, I try to work with them on ways they can enjoy less than 6 month stays in Japan as part of a more global strategy.
I would say, if you have USD 200K in cash, 100K US treasury bond, and 2000 USD monthly passive income, you would be able to set up an upper middle class life in Japan, as of 2024. Your full time job would be learning Japanese language and local cutoms and culture, and build local network. You will be free from financial worries.
Add a Japanese spouse to this and a good relationship between you two, and you’ve got a better argument. Living in Japan as a gaijin without a Japanese spouse can be fine until it’s not. And then it’s really really not fine when you’re older.
@@claudemontes-w5r Two reasons, for example. 1. I mentioned "upper middle class life". Calculating my numbers above, that would provide you like 2300 USD tax free. 2. I became very ill in Japan recently, and I thought, medical expenses, although reasonable and I am insured, cost a bit still. So some rainy money included. For your reference, without insurance, my chemotherapy would cost me USD 15000 per session and there will be six sessions needed. I am fully insured so I don't pay more than 500-550 USD per month but it would last for 3-4months easily.
Currently going through the process of getting a Business Manager Visa. The process is far more daunting than most countries, but the capital requirements are a lot less in a lot of cases. $35k is actually within reach for most middle class folks who have been saving diligently to make this their dream, as compared to Korea, which was $75k. Fantastic interview, and as someone who just recently moved to Japan, it was an interesting perspective.
When I started researching how Japan's business manager visa compared to other options, I was surprised by the low cost too! Part of it has to do with the exchange rate. For many years 5M JPY meant $50K+. I wonder how long this will last?
I need to talk to Japan Remotely. This man speaks exactly about the thing I want to do and have been prepping for for the past 8 months already. I fit exactly within the bounds of the perfect client for him. This is exciting to know as I’ve been stumbling into roadblock after roadblock. Thank you for making this video and sharing it. It’s invaluable for me and my family’s life. ❤
Very helpful interview. I retired early from the military and have been looking into relocating from the US to Japan to stretch my fixed monthly income. Currently enrolled in Japanese courses to solidify the potential. Thank you both for the information!
Retire here? No way, try living your whole life here. I've been in Japan for 25 years and I could never imagine anywhere else as home. It's such an amazing country! Safe and affordable housing! I make videos on my Akiya real estate journey here.
As someone who will be "retiring" in Japan, I cannot recommend to retire here unless you have good residual income or plan to work till death. As someone who comes from an IT background (in the USA), I had to go the teacher route. It's what will put food on my table since there is always teaching opportunities, especially in the countryside. As you get older, you can do remote teaching. I do not recommend anyone live in or near Tokyo. Too much competition, expensive living costs, and taxes/rules will never be in your favor. I'm lucky to have a house ready in the country side in Shikoku. Yes, there is nothing to do there but there is plenty of farm land for one to grow their own fruits, veggie, and rice. That is enough for me to live out my final years.
Residual income is key...especially with the exchange rate. A lot of my clients talk about "down-shifting" where they do something in Japan that's not too hard, doesn't make much money, but doesn't really matter because they have other sources of financing.
He's very honest and knowledgeable about real world situations. I think consulting and support services are areas that will become more and more necessary, since there are inherent limitations to initiatives led by governments and municipalities.
Thank you! I may be biased, but I agree! Here's a quick story: I recently met with an organization in charge of encouraging foreigners to start businesses in a certain region of Japan. I'm pretty bilingual in Japanese, but the communication style is just so indirect that it's still challenging. We talked for 60 minutes and only in the last 5 did one of the older Japanese gentlemen pipe up with some really interesting feedback. My goal is to help clients get to a clear understanding of what they want to do before starting to interact with counterparts in Japan so that communication is smoother and results are faster.
Very interesting interview, and masterfully conducted by the interviewer. My first time on this channel, but not the last. Only topic I found missing was the issue of inheritance taxes on worldwide income and assets as all retirees would become “permanent residents FOR THE PURPOSE OF TAXES” after 5 years, regardless of their specific visa type. Retiring in Japan and leaving an estate to kids or other beneficiaries abroad would be exposed to very aggressive inheritance taxes, even beneficiaries who have never set foot in Japan, and even if assets are abroad.
Outstanding interview! For all those over 50 (myself included) it behooves you to at least consider retirement in Japan. Conversely, retirement in USA will not be possible for great many people due to astronomical costs of everything, namely Healthcare. I'll be sure to reach out to Nick when I am ready.
I really like this gentleman and wish him the best in the US. He seems like such a stand up guy. My son in about the same age and it breaks my heart to see young people in the USA struggle and work so hard.
I've been following your page on instagram for a while, and finally found some time to watch this full episode with Nick. Really great interview! Japan Remotely offers a great service for those who are looking for sort of a package plan for their move to Japan. What a nice surprise that he mentioned our small business when discussing the Startup visa. So cool, haha! We subscribed to your channel, and are looking forward to watching future interviews :)
All of you who retire in Japan do contact me! Here since the late 1980s, as an academic, and married to a Japanese. Living in suburban Tokyo. There are many benefits to living here, for certain!
The title is misleading as it is not about retirement aged individuals looking to move to Japan. Mainly about individuals with school aged children, employment choices, businesses, etc. I would love to see what the rules/regulations are about retiring to Japan living off foreign pensions/passive investments.
I agree, it was more about work visas, and akiya and not about retirees moving to Japan. I would have been more interested THAT topic. I was surprised that the issue of language was not discussed more. Moving to Japan with little or no Japanese skills will make integrating into society very troublesome.
Same here! We took an early retirement and love to retire in Japan. But, unfortunately, this video does not mention that much about how to obtain a long term visa for retirees to Japan, the details of cost of healthcare……however, this is an interesting video. Thanks
To go to Japan to truly retire in Japan using only passive income is not feasible at this point in time in a single step. What some of my clients do is reinvest some of their funds into a small business that they enjoy doing. Others, perhaps those at the peak of their career, can consider getting a high paying job at a foreign company for a couple of years, obtain permanent residency, and then they can truly live on passive investments.
Thanks for sharing,.My ex husband originally from Yonago,but we went here in Tokyo,and now my son live in Tokyo.I am decided to live in US ,started to give everything ,but watching this made me think 2x.
My wife's aging parents live in a Tokyo suburb and require more and more of her assistance. She is back and forth between the US and Japan 2-3 times per year for 4-12 weeks at a time depending on the assistance they require. I retire in a few months so will be available to assist her. Happy to hear we meet much of the criteria to reside in Japan in this discussion. There is a strong chance we will find a place to purchase and slowly transition to full time residency in Japan at some point in our retirement. Minimizing our US based assets from Japan's estate taxes is an important consideration.
Moved here during covid escaping from nyc. None is this would of been possible without my JP wife. We had her dad check out a prop i saw online. 1hr train to tokyo and 10min drive to the beach. When buying an akiya you should be looking at the land as the priority. The kominca is like 80yrs+. I didnt expect much and would be just livable until we tore it down for a new one or renovated. Its 3acres and closest neighbor is 60+meters away. Put 30k into renovation/modernizing and this house beats any apt we ever lived in NYC paying $4k a month. One thing to consider is the amount of yardwork as living here into my 70-80s might not be something i want to do but, it does keep you active. I still work remote but, with my inaka lifestyle and cost of living rent/debt free i could retire anytime.
He can easily come back to Japan and retire because he can use a spousal visa since he is married to a Japanese national. If two Americans came to Japan, they would have to keep running a business even after retirement age since there isn't a retirement visa. If they sold their business, they would have to leave because their business wouldn't support their visa. Visas are about sponsors, business and start up, the company sponsors you, spousal visa, the spouse sponsors you, student visa, the school sponsors you. If you have neither, there is no one to sponsor you.
It’s 5 years for “permanent TAX residency”… this is Japan Tax Agency law, not immigration law. This is separate from permanent residency through Immigration and the Ministry of Justice. Permanent tax residency and corresponding obligations operates independent of visa category.
That's a good point. In order to truly retire you need permanent residency. If you have a business, it's possible to be eligible after 5 years or so (depending on how it goes). You need to honestly think about your age at the time you make this move and be confident that your health will hold up while your business is your ticket to staying in Japan.
Just came back from a two weeks trip in Japan, staying in a hotel converted from machiya in Kyoto. This episode is exatly what i am looking for and affirmed my assumption. thank you
With the right strategy a Costco chicken can last quite a few meals! It's crazy because just buying a raw chicken alone costs more than getting a perfectly cooked one. Other stores prices have gone up too. Safeway roast chicken is like over $10 now. Thank you $5 Costco chicken!
The title is a bit misleading. This guy is not retired....aka 65 years old and getting Japanese retire benefits from the Japanese government. As for me, I came to Japan in 1983 and started working. I never worked outside of Japan so all my years I provided all my retirement deducts at the very beginning. Now I am 65 years old and retired. I love my retirement. I have my own property and house. No loans. All my retirement money from the Japanese government lets me relax and chill out. Oh yeah, it helps if you become Japanese citizen which I did several years back. The only thing is I do not travel outside Japan...too dam expensive...but that is not an issue for me.
@@DanielK1213th For kokumin nenkin I get around 18man/month and 2 extra man from Kosei nenkin. So about 20 man/month. I also have my partner who still works and provides an extra 15 man. So my retirement is fine I feel.
@@senju2024yeah I think to live a decent but low key life in Japan you can survive on that, as long as your have paid roof over your head. It’s not an expensive country to live well in and enjoy the simple things it has to offer.
@@senju2024I once calculated that if you pay kokumin nenkin for 40 years at ~16,666 yen a month, it will only give you about 7-8 man a month. 18 man seems very high. A you sure that’s not kosei nenkin ? At any rate, with the combined income, it’s certainly enough. With just your income, not so easy. The massive problem everyone will be faced with however. My guess is that they will keep raising the age you need to pay the monthly installments from 60 to 65 then to 68😅
I strongly disagree. I know plenty of people who have moved here and started extremely successful businesses. IMHO Japan is a great place to start and run a business.
Funny that he name checked Tsukuba, as that is where we decided to live and plan to "retire" here. Though you wouldn't want to come here and then try and find a job, nor try and commute to Tokyo daily. But an absolutely fantastic place to be if you have real interest in Japan, learning Jpn language etc...
You actually can commute from there to Tokyo. I know some people who commute from Mito, which is a bit farther north. The express train only takes like an hour.
I had a colleague who commuted from Tsukuba to Kawasaki! That's 3 crossing 3 prefectures! haha Lots of interesting people there too since it's a university/research town.
@@JapanRemotely That is a serious commute. We love it in Tsukuba, and yeah all sorts of great weirdos to hang out with: rocket scientists, physicists, zen priests etc... our hangouts at local bars are always fun.
So what were to happen if you don’t notify the government before leaving Japan? If you return once a year to maintain your residence card, and have no taxable Japanese income, would anything negative happen?
Interesting interview. I am the exception maybe because I just jumped on a plane and have been here for 20 years. I have never looked back really. The kids things is an interesting debate. We had our daughter here so she is fully Japanese but definitely looks mixed. Plus as a black man in a mid-sized rural city I stick out. That said, she has been all good in the public schools. Not sure I would be coming to Japan though if our daughter were a teenager. That would be a huge burden for the kid. The big determinant really is language ability. If the kid and parent can speak, read and write Japanese that is a huge step! I like the repeated idea that living in Japan is a lifestyle choice not a monetary one. I know I will probably stay in Japan and live comfortably. My goal has never been to maximize my bank account. It has always been just to chill and live humbly.
Half Japanese who grew up in Japan but works now in Western Europe. This is the plan. 👍🏻 Get paid better, get vacations which is required by law, and travel to JP and live with relatives for cheaper accommodation. It's perfect.
Now with the digital nomad visa, it's also possible to stay 6 months per year without any tax complications. I often ask my clients "why is 180 days not enough time?" Often the answer is a logistical issue, two sets of households ends up costing more. Others just feel "at home" in Japan and don't want to go anywhere else!
Another great strategy! Lots of ways to think about it. I'd be concerned about getting sick while in the US, so I'd probably pick a couple more countries to spend a few months in per year too.
One topic I wished you would've covered is the government raising the possibility of the mega quake to 82% within the next 30 years. Most of these akiyas were built before the earthquake standards and would most likely collapse. I bought an akiya in tokushima and I'm pretty sure it's going to come crashing down. Buyers should take this into consideration before moving to Japan.
Maternity leave in Japan might be great at specific companies. Your wife was lucky. The education institution I used to work for tried to fire me as soon as I told them I got pregnant...they thought I didn't know my rights because I'm a foreigner...until I confronted them and I told them what they were doing was illegal. Afterwards they told me that everything was a misunderstanding 😢...This is a very male chauvinist society, unfortunately.
This is a great episode. Very informative. I am 47 and I'm hoping to retire at the age of 50. That gives me three years to research and save for an Akiya.
Up to 55% on inheritance tax. On worldwide assets. For all residents even if you hold a foreign passport. If don't own a lot, no biggie. But if you want to pass on a million USD to heirs when you kick the bucket Japan will take $550,000.00 as their cut.
55 % is the rate of the tranche above 4 Mio USD. If only 1 Mio and 2 kids the tax will be 161,000 USD (there are deductions to determine taxable amount and tranches with different rates).
@@Matmat123-b6u What is the best source you've found for info on inheritance taxes in Japan? My wife (Japanese ) and I (American) would like to live in Japan again but we're worried about a substantial chunk of our inheritance going to the Japanese government instead of our son.
@@kenjohnson6208 I worked in the wealth management industry in Japan so I know how it works. But you if you ask chat gpt it will do all the calculations for you. I do not know the amount of your estate but basically if you have one son up to 36 million JPY 230,000 USD no tax. Then it goes up quickly. Everything over 4 millions USD is a disaster because taxed at 55%. There are ways to reduce a bit the tax (for ex buying real estate) but it is limited.
@@kenjohnson6208 I'm no tax expert so best to consult with someone who is. Tho it will be hard to find an English speaking tax expert on Japan. A Japanese who can speak English may still come of too dry, and by the book to explain things well. As far as tax rates, a google search will bring up basics on what % is taxed on what inheritance amount.
@@kenjohnson6208there is actually an American accounting company that are in situations like us with japan specifically and set up business for this specifically. I just found it on TH-cam recently... i will try to find the link..
So.....have money to start with... come to Japan and buy dilapidated, unwanted old house ,live cheaply. Yeah, very inspiring.... this was an almost comical interview.
What's wrong with renovating an old house to make into a nice home that's super affordable and having low overheads? Better than living in the west where housing is not affordable and rents ever increasing
I think Japan doesn’t really need any more old people moving here, so why make it easy. If you have a genuine business idea and want to contribute to the country, then there are ways. If you just want a cheap lifestyle cos it’s too expensive in your own country, maybe look elsewhere. 😂
@@garyrobert1971 well first of all you don't know what you are talking about and making assumptions. You can work a job or make a business and still want to have a cheap affordable lifestyle. I don't know where you are from but where I am from housing is not affordable anymore. Two I'm not old so I don't know where you got your information that I'm going there to just retire.
@@garyrobert1971 Many countries have retirement visas usually for a limited time...2,3,4 years. Most require a physical. "Youngish" retirees enjoy a few years overseas and bring their money with them. It can help to boost a local economy. Japan should consider it.
Nope, to retire in Japan, you need at least $5K of monthly pension to be living there forever PLUS at least another $200K for emergency. Way too overpriced.
It all depends of how you want to live but less than 10% of Japanese earn more than 5000 USD per month so it is definitely possible to live with less as the other 90 % are not starving as long as I know.
I disagree that you would need that much. Remember that US dollars are worth far far more here. Also remember that a really nice apartment in a convenient location can be rented for $1k a month and you don’t need a car either. So given this, I believe $3K a month and your sum of $200K would be more than enough.
@@peterbedford2610 So, the largest % of men fall into an income bracket of 4 - 5m JPY per year. Currently that is more like $30k per year. One thing to understand is people can be very frugal here; I'd say it's actually culturally pretty frugal. I'd even say Japan sort of attracts some foreign people who are into frugality. It's not a place where you build wealth, IMO. Also, keep in mind that there are options here that you don't necessarily see in other countries. Like, you can get an absolutely tiny apartment, farther from a station, older, etc., for a cheap price.
Thank you Tobi! It was so great being back in Japan and getting to sit down with you. I learned a lot from the great comments here too. What does it even mean to "retire" in Japan? I realized it means different things to different people at different stages of their lives. The simplest definition "stop providing labor in exchange for money" is a bit hard to achieve all in one go in Japan (unless you have Japanese family). With my clients, I explore the possibilities beyond "I work 40+ hrs per week as a full-time employee" to see if there is a compromise that both satisfies immigration requirements and brings them a happy lifestyle. As for myself, I want to get out of the rat race and do things I enjoy. This project and your kind listeners have shown me I've made a big step in the right direction!
Before moving to Japan, really really make sure you do your due diligence on Tax planning. Japan Taxation is much more aggressive than the US. If you have substantial assets, additional reporting requirements and exit tax are important things to become knowledgeable about.
日本の税金が高額すぎて日本を去る人増えています。僕も海外へ逃げた
@@minami_chan210 どちらへ逃げましたか？自分は国籍がノルウェーで、黒海のジョージアへ逃げました。消費税が１％なので、簡単に稼げます。
Japan is not a great place to be a resident if you are wealthy. When I explain this to my clients, some of them don't care! They love it, want to be there 100% of the year, and don't mind paying. For others, I try to work with them on ways they can enjoy less than 6 month stays in Japan as part of a more global strategy.
@ What do you consider wealthy? $1million I the bank? $5 Million in the bank? More?
I would say, if you have USD 200K in cash, 100K US treasury bond, and 2000 USD monthly passive income, you would be able to set up an upper middle class life in Japan, as of 2024.
Your full time job would be learning Japanese language and local cutoms and culture, and build local network.
You will be free from financial worries.
Add a Japanese spouse to this and a good relationship between you two, and you’ve got a better argument. Living in Japan as a gaijin without a Japanese spouse can be fine until it’s not. And then it’s really really not fine when you’re older.
@@shizuokaBLUES Why not?
@@linda4787 Linda do you live in Japan now?
Why so much money? Can be done with much less,
@@claudemontes-w5r Two reasons, for example.
1. I mentioned "upper middle class life". Calculating my numbers above, that would provide you like 2300 USD tax free.
2. I became very ill in Japan recently, and I thought, medical expenses, although reasonable and I am insured, cost a bit still. So some rainy money included.
For your reference, without insurance, my chemotherapy would cost me USD 15000 per session and there will be six sessions needed.
I am fully insured so I don't pay more than 500-550 USD per month but it would last for 3-4months easily.
Currently going through the process of getting a Business Manager Visa. The process is far more daunting than most countries, but the capital requirements are a lot less in a lot of cases. $35k is actually within reach for most middle class folks who have been saving diligently to make this their dream, as compared to Korea, which was $75k.
Fantastic interview, and as someone who just recently moved to Japan, it was an interesting perspective.
When I started researching how Japan's business manager visa compared to other options, I was surprised by the low cost too! Part of it has to do with the exchange rate. For many years 5M JPY meant $50K+. I wonder how long this will last?
I need to talk to Japan Remotely. This man speaks exactly about the thing I want to do and have been prepping for for the past 8 months already.
I fit exactly within the bounds of the perfect client for him. This is exciting to know as I’ve been stumbling into roadblock after roadblock.
Thank you for making this video and sharing it. It’s invaluable for me and my family’s life. ❤
Very helpful interview. I retired early from the military and have been looking into relocating from the US to Japan to stretch my fixed monthly income. Currently enrolled in Japanese courses to solidify the potential. Thank you both for the information!
Great strategy! Language will help you expand your options and enjoy your experience more!
Retire here? No way, try living your whole life here. I've been in Japan for 25 years and I could never imagine anywhere else as home. It's such an amazing country! Safe and affordable housing! I make videos on my Akiya real estate journey here.
I like your channel my guy you do some great work. Keep it up! I hope to have a portfolio like you one day🙏
@@burritolips1572 Thanks man! It's a lot of work and patience, but not impossible :)
As someone who will be "retiring" in Japan, I cannot recommend to retire here unless you have good residual income or plan to work till death. As someone who comes from an IT background (in the USA), I had to go the teacher route. It's what will put food on my table since there is always teaching opportunities, especially in the countryside. As you get older, you can do remote teaching. I do not recommend anyone live in or near Tokyo. Too much competition, expensive living costs, and taxes/rules will never be in your favor. I'm lucky to have a house ready in the country side in Shikoku. Yes, there is nothing to do there but there is plenty of farm land for one to grow their own fruits, veggie, and rice. That is enough for me to live out my final years.
Residual income is key...especially with the exchange rate. A lot of my clients talk about "down-shifting" where they do something in Japan that's not too hard, doesn't make much money, but doesn't really matter because they have other sources of financing.
He's very honest and knowledgeable about real world situations. I think consulting and support services are areas that will become more and more necessary, since there are inherent limitations to initiatives led by governments and municipalities.
Thank you! I may be biased, but I agree! Here's a quick story: I recently met with an organization in charge of encouraging foreigners to start businesses in a certain region of Japan. I'm pretty bilingual in Japanese, but the communication style is just so indirect that it's still challenging. We talked for 60 minutes and only in the last 5 did one of the older Japanese gentlemen pipe up with some really interesting feedback. My goal is to help clients get to a clear understanding of what they want to do before starting to interact with counterparts in Japan so that communication is smoother and results are faster.
This is such a great interview. Learned things I haven't seen on other talks.
Thank you!!
Very interesting interview, and masterfully conducted by the interviewer. My first time on this channel, but not the last. Only topic I found missing was the issue of inheritance taxes on worldwide income and assets as all retirees would become “permanent residents FOR THE PURPOSE OF TAXES” after 5 years, regardless of their specific visa type. Retiring in Japan and leaving an estate to kids or other beneficiaries abroad would be exposed to very aggressive inheritance taxes, even beneficiaries who have never set foot in Japan, and even if assets are abroad.
Interesting. I'll look more into that. thank you for the heads up!
This was a very interesting episode-thank you so much! 😊
Glad you liked it!!
Thanks for watching!
Outstanding interview! For all those over 50 (myself included) it behooves you to at least consider retirement in Japan. Conversely, retirement in USA will not be possible for great many people due to astronomical costs of everything, namely Healthcare. I'll be sure to reach out to Nick when I am ready.
Thank you! I'll be on the lookout for ya!
I really like this gentleman and wish him the best in the US. He seems like such a stand up guy. My son in about the same age and it breaks my heart to see young people in the USA struggle and work so hard.
Thank you! I also appreciate your empathy...
I've been following your page on instagram for a while, and finally found some time to watch this full episode with Nick. Really great interview! Japan Remotely offers a great service for those who are looking for sort of a package plan for their move to Japan. What a nice surprise that he mentioned our small business when discussing the Startup visa. So cool, haha! We subscribed to your channel, and are looking forward to watching future interviews :)
Thanks guys! Love what you do as well!
All of you who retire in Japan do contact me! Here since the late 1980s, as an academic, and married to a Japanese. Living in suburban Tokyo. There are many benefits to living here, for certain!
A big YES on Japanese Costco roast chicken!
I’m so happy for discovering your channel! I’m very interesting in Japanese culture and you are my new addition. Thank you!
Thank you for watching!!
The title is misleading as it is not about retirement aged individuals looking to move to Japan. Mainly about individuals with school aged children, employment choices, businesses, etc. I would love to see what the rules/regulations are about retiring to Japan living off foreign pensions/passive investments.
I agree, it was more about work visas, and akiya and not about retirees moving to Japan. I would have been more interested THAT topic. I was surprised that the issue of language was not discussed more. Moving to Japan with little or no Japanese skills will make integrating into society very troublesome.
Same here! We took an early retirement and love to retire in Japan. But, unfortunately, this video does not mention that much about how to obtain a long term visa for retirees to Japan, the details of cost of healthcare……however, this is an interesting video. Thanks
To go to Japan to truly retire in Japan using only passive income is not feasible at this point in time in a single step. What some of my clients do is reinvest some of their funds into a small business that they enjoy doing. Others, perhaps those at the peak of their career, can consider getting a high paying job at a foreign company for a couple of years, obtain permanent residency, and then they can truly live on passive investments.
Thanks for sharing,.My ex husband originally from Yonago,but we went here in Tokyo,and now my son live in Tokyo.I am decided to live in US ,started to give everything ,but watching this made me think 2x.
My wife's aging parents live in a Tokyo suburb and require more and more of her assistance. She is back and forth between the US and Japan 2-3 times per year for 4-12 weeks at a time depending on the assistance they require. I retire in a few months so will be available to assist her. Happy to hear we meet much of the criteria to reside in Japan in this discussion. There is a strong chance we will find a place to purchase and slowly transition to full time residency in Japan at some point in our retirement. Minimizing our US based assets from Japan's estate taxes is an important consideration.
I've been talking with quite a few people in that situation lately. Not easy... hang in there.
Moved here during covid escaping from nyc. None is this would of been possible without my JP wife. We had her dad check out a prop i saw online. 1hr train to tokyo and 10min drive to the beach. When buying an akiya you should be looking at the land as the priority. The kominca is like 80yrs+. I didnt expect much and would be just livable until we tore it down for a new one or renovated. Its 3acres and closest neighbor is 60+meters away. Put 30k into renovation/modernizing and this house beats any apt we ever lived in NYC paying $4k a month. One thing to consider is the amount of yardwork as living here into my 70-80s might not be something i want to do but, it does keep you active. I still work remote but, with my inaka lifestyle and cost of living rent/debt free i could retire anytime.
NYC leaves its mark on you...happy to be in Japan after growing up for a while in NYC.
Livin' the dream!
He can easily come back to Japan and retire because he can use a spousal visa since he is married to a Japanese national. If two Americans came to Japan, they would have to keep running a business even after retirement age since there isn't a retirement visa. If they sold their business, they would have to leave because their business wouldn't support their visa. Visas are about sponsors, business and start up, the company sponsors you, spousal visa, the spouse sponsors you, student visa, the school sponsors you. If you have neither, there is no one to sponsor you.
After 5 years the business owner could acquire permanent residency, which continues into retirement
@@johnmatthews7865exactly. I know foreigners who are retired and live on permanent residence visas.
Not sure 5 years. 10 would be automatic, 5 they would need to hit a certain number of points.
It’s 5 years for “permanent TAX residency”… this is Japan Tax Agency law, not immigration law. This is separate from permanent residency through Immigration and the Ministry of Justice. Permanent tax residency and corresponding obligations operates independent of visa category.
That's a good point. In order to truly retire you need permanent residency. If you have a business, it's possible to be eligible after 5 years or so (depending on how it goes). You need to honestly think about your age at the time you make this move and be confident that your health will hold up while your business is your ticket to staying in Japan.
Just came back from a two weeks trip in Japan, staying in a hotel converted from machiya in Kyoto. This episode is exatly what i am looking for and affirmed my assumption. thank you
I'm glad you had a great trip! Japan is a great place to live - in certain conditions!
25:19 I like this guy 😊 Costco chicken…this made me smile. He really loves his Costco chicken 😋
With the right strategy a Costco chicken can last quite a few meals! It's crazy because just buying a raw chicken alone costs more than getting a perfectly cooked one. Other stores prices have gone up too. Safeway roast chicken is like over $10 now. Thank you $5 Costco chicken!
Oooh an AJET and he was a CIR! Always fun to learn about what other CIRs do elsewhere 😆
殆ど職員室でフェイスブックを見ていました。笑
@JapanRemotely それは良いですねｗ
どうもありがとうございます。30年以上アメリカに住んでいます。日本にリタイアした後にアメリカ人の主人と住もうかなとおもっています。
そうした方がいいと思います。ご主人の方が日本の生活について悩みなどがありましたら遠慮なくご連絡ください。
The title is a bit misleading. This guy is not retired....aka 65 years old and getting Japanese retire benefits from the Japanese government. As for me, I came to Japan in 1983 and started working. I never worked outside of Japan so all my years I provided all my retirement deducts at the very beginning. Now I am 65 years old and retired. I love my retirement. I have my own property and house. No loans. All my retirement money from the Japanese government lets me relax and chill out. Oh yeah, it helps if you become Japanese citizen which I did several years back. The only thing is I do not travel outside Japan...too dam expensive...but that is not an issue for me.
All your retirement comes from the government? How about your company?
@@DanielK1213th For kokumin nenkin I get around 18man/month and 2 extra man from Kosei nenkin. So about 20 man/month. I also have my partner who still works and provides an extra 15 man. So my retirement is fine I feel.
@@senju2024yeah I think to live a decent but low key life in Japan you can survive on that, as long as your have paid roof over your head. It’s not an expensive country to live well in and enjoy the simple things it has to offer.
@@senju2024I once calculated that if you pay kokumin nenkin for 40 years at ~16,666 yen a month, it will only give you about 7-8 man a month. 18 man seems very high. A you sure that’s not kosei nenkin ? At any rate, with the combined income, it’s certainly enough. With just your income, not so easy. The massive problem everyone will be faced with however. My guess is that they will keep raising the age you need to pay the monthly installments from 60 to 65 then to 68😅
お疲れ様です！
First time on this channel and it’s an amazing interview. Made me subscribed!
So glad to have you!!
Arigato!
I strongly disagree. I know plenty of people who have moved here and started extremely successful businesses.
IMHO Japan is a great place to start and run a business.
Funny that he name checked Tsukuba, as that is where we decided to live and plan to "retire" here. Though you wouldn't want to come here and then try and find a job, nor try and commute to Tokyo daily. But an absolutely fantastic place to be if you have real interest in Japan, learning Jpn language etc...
You actually can commute from there to Tokyo. I know some people who commute from Mito, which is a bit farther north. The express train only takes like an hour.
I had a colleague who commuted from Tsukuba to Kawasaki! That's 3 crossing 3 prefectures! haha Lots of interesting people there too since it's a university/research town.
@@JapanRemotely That is a serious commute. We love it in Tsukuba, and yeah all sorts of great weirdos to hang out with: rocket scientists, physicists, zen priests etc... our hangouts at local bars are always fun.
So what were to happen if you don’t notify the government before leaving Japan? If you return once a year to maintain your residence card, and have no taxable Japanese income, would anything negative happen?
From a high level, that should be okay!
Interesting interview. I am the exception maybe because I just jumped on a plane and have been here for 20 years. I have never looked back really.
The kids things is an interesting debate. We had our daughter here so she is fully Japanese but definitely looks mixed. Plus as a black man in a mid-sized rural city I stick out. That said, she has been all good in the public schools. Not sure I would be coming to Japan though if our daughter were a teenager. That would be a huge burden for the kid. The big determinant really is language ability. If the kid and parent can speak, read and write Japanese that is a huge step!
I like the repeated idea that living in Japan is a lifestyle choice not a monetary one. I know I will probably stay in Japan and live comfortably. My goal has never been to maximize my bank account. It has always been just to chill and live humbly.
It's a juggle on the timing for sure...thanks for the advice!
There is no need to move there. Just visit and stay for 2-3 months per year, more than enough
Yes, that's my plan when I "semi-retire."
Half Japanese who grew up in Japan but works now in Western Europe. This is the plan. 👍🏻 Get paid better, get vacations which is required by law, and travel to JP and live with relatives for cheaper accommodation. It's perfect.
Not a terrible idea but it really helps to have a zairyu and myna card, possibly a license, all the legal things you need here to make life easier.
Now with the digital nomad visa, it's also possible to stay 6 months per year without any tax complications. I often ask my clients "why is 180 days not enough time?" Often the answer is a logistical issue, two sets of households ends up costing more. Others just feel "at home" in Japan and don't want to go anywhere else!
Why not Shikoku? There are four prefectures that are unique in their own ways.
Shikoku is awesome...I was seriously thinking about Awaji as an option - kind of the best of both worlds.
Make money online in USD, have homebase in the US, live in Japan 3 months of the year and enjoy yourself!
Yes, that's my prospective plan for early "semi-retirement." It helps that I have a sister who lives and works in Japan.
Another great strategy! Lots of ways to think about it. I'd be concerned about getting sick while in the US, so I'd probably pick a couple more countries to spend a few months in per year too.
One topic I wished you would've covered is the government raising the possibility of the mega quake to 82% within the next 30 years. Most of these akiyas were built before the earthquake standards and would most likely collapse. I bought an akiya in tokushima and I'm pretty sure it's going to come crashing down. Buyers should take this into consideration before moving to Japan.
Seems like those who value courtesy, peace, and money wish to visit there.
Maternity leave in Japan might be great at specific companies. Your wife was lucky. The education institution I used to work for tried to fire me as soon as I told them I got pregnant...they thought I didn't know my rights because I'm a foreigner...until I confronted them and I told them what they were doing was illegal. Afterwards they told me that everything was a misunderstanding 😢...This is a very male chauvinist society, unfortunately.
This is more like “Retiring in Japan with a business idea.”
You’re better off flying in and out of Japan regularly than retiring there fully
I live Japan, but im afraid of the tsunami and earthquake. Now, i avoid lay over in Japan.
This is a great episode. Very informative. I am 47 and I'm hoping to retire at the age of 50. That gives me three years to research and save for an Akiya.
I rememebr 80 yen to a dollar...american gettting pay in $ were miserable. so better have backup plan.
Up to 55% on inheritance tax. On worldwide assets. For all residents even if you hold a foreign passport. If don't own a lot, no biggie. But if you want to pass on a million USD to heirs when you kick the bucket Japan will take $550,000.00 as their cut.
55 % is the rate of the tranche above 4 Mio USD. If only 1 Mio and 2 kids the tax will be 161,000 USD (there are deductions to determine taxable amount and tranches with different rates).
@@Matmat123-b6u What is the best source you've found for info on inheritance taxes in Japan? My wife (Japanese ) and I (American) would like to live in Japan again but we're worried about a substantial chunk of our inheritance going to the Japanese government instead of our son.
@@kenjohnson6208 I worked in the wealth management industry in Japan so I know how it works. But you if you ask chat gpt it will do all the calculations for you.
I do not know the amount of your estate but basically if you have one son up to 36 million JPY 230,000 USD no tax. Then it goes up quickly. Everything over 4 millions USD is a disaster because taxed at 55%. There are ways to reduce a bit the tax (for ex buying real estate) but it is limited.
@@kenjohnson6208 I'm no tax expert so best to consult with someone who is. Tho it will be hard to find an English speaking tax expert on Japan. A Japanese who can speak English may still come of too dry, and by the book to explain things well. As far as tax rates, a google search will bring up basics on what % is taxed on what inheritance amount.
@@kenjohnson6208there is actually an American accounting company that are in situations like us with japan specifically and set up business for this specifically. I just found it on TH-cam recently... i will try to find the link..
Good video
Tobi, you should ask more QUESTIONS instead of basically just summarize/talk on behalf of the guest, too wordy
But he is not Japanese
privileged people who never worked a hard day in their life
So.....have money to start with... come to Japan and buy dilapidated, unwanted old house ,live cheaply. Yeah, very inspiring.... this was an almost comical interview.
What's wrong with renovating an old house to make into a nice home that's super affordable and having low overheads? Better than living in the west where housing is not affordable and rents ever increasing
I think Japan doesn’t really need any more old people moving here, so why make it easy. If you have a genuine business idea and want to contribute to the country, then there are ways. If you just want a cheap lifestyle cos it’s too expensive in your own country, maybe look elsewhere. 😂
@@garyrobert1971 well first of all you don't know what you are talking about and making assumptions. You can work a job or make a business and still want to have a cheap affordable lifestyle. I don't know where you are from but where I am from housing is not affordable anymore. Two I'm not old so I don't know where you got your information that I'm going there to just retire.
@@lycanlube7484 Nothing wrong. LMAO
@@garyrobert1971 Many countries have retirement visas usually for a limited time...2,3,4 years. Most require a physical. "Youngish" retirees enjoy a few years overseas and bring their money with them. It can help to boost a local economy. Japan should consider it.
Nope, to retire in Japan, you need at least $5K of monthly pension to be living there forever PLUS at least another $200K for emergency. Way too overpriced.
It all depends of how you want to live but less than 10% of Japanese earn more than 5000 USD per month so it is definitely possible to live with less as the other 90 % are not starving as long as I know.
Japan's median household income looks to be around $45K/year. How are they surviving?
I disagree that you would need that much. Remember that US dollars are worth far far more here. Also remember that a really nice apartment in a convenient location can be rented for $1k a month and you don’t need a car either. So given this, I believe $3K a month and your sum of $200K would be more than enough.
@@shizuokaBLUES That is my goal.
@@peterbedford2610 So, the largest % of men fall into an income bracket of 4 - 5m JPY per year. Currently that is more like $30k per year. One thing to understand is people can be very frugal here; I'd say it's actually culturally pretty frugal. I'd even say Japan sort of attracts some foreign people who are into frugality. It's not a place where you build wealth, IMO. Also, keep in mind that there are options here that you don't necessarily see in other countries. Like, you can get an absolutely tiny apartment, farther from a station, older, etc., for a cheap price.