Japan proposes tougher income rules for permanent residency

Japan's immigration agency has proposed stricter conditions for granting permanent residency to foreigners, under Prime Minister Sanae Takaichi's efforts to foster a well-ordered society and curb illegal activities. The proposed guidelines, which will be open to public comment before implementation in April 2027, aim to raise income and pension standards for potential residents.

To qualify for permanent residency, applicants must demonstrate sustained income above the average Japanese household income. According to a July 15 health ministry survey, the average household income in Japan was ¥5.75 million (US$36,500) in 2024. In addition to income requirements, applicants will need to prove they possess adequate pension benefits equivalent to those expected after 30 years of participating in Japan's employee pension program.

Applicants will also need to prove their proficiency in the Japanese language, equivalent to the level of an "independent user." The current thresholds for family-based permanent residency are set to increase from a three-year marriage to five years and a one-year residence requirement to three years.

The revised rules aim to differentiate permanent residency from naturalisation, the latter of which results in Japanese citizenship. Unlike the latter, permanent residency does not limit an individual's activities within Japan or require them to renounce their original nationality.

As of the end of last year, there were approximately 947,000 permanent residents in Japan, primarily comprising individuals from China and the Philippines. The new guidelines would apply to both spouses of Japanese nationals and permanent residency holders who have been married for at least three years and have resided in Japan for at least a year.

In a related move, Japan's immigration authorities plan to introduce a five-year residency period for Specified Skilled Worker No 2 holders starting January 2027. This change aims to level the playing field for these workers when applying for permanent residency, ensuring their maximum stay aligns with other visa types.