Japan Tightens Permanent Residency Rules for Foreigners

Japan has implemented stricter residency rules for foreigners, taking effect from April 2027 for most applications. The government revised the residency guidelines on October 1, introducing higher income, pension, and language requirements. Applications filed from April 2026 will also be subject to the new income rules. Applicants must now demonstrate a household yearly income exceeding the average Japanese household of similar size.

Proficiency in the Japanese language at B1 level or above, enabling everyday communication, is now a mandatory part of the assessment. Some applicants might be exempt from this requirement. Pension savings will also factor in, with applicants required to show future pension benefits akin to those of someone who contributed to Japan's employee pension system for 30 years.

Financial assets could help offset any shortfall. Concurrently, Japan has significantly raised the fee for permanent residency, from 10,000 yen to 200,000 yen, a 20-fold increase. This grant confers foreign nationals greater long-term stability, as it does not restrict the period of stay or type of work. Prime Minister Sanae Takaichi's administration is reviewing residence rules due to population decline and labour shortages, yet stresses the need for stronger compliance with laws and social rules.

The ageing population exacerbates the need for overseas workers. However, the government simultaneously tightens immigration and residency controls amid the increasing number of foreign residents. The new criteria are not retroactive, primarily altering conditions for future applicants. Existing residents retain their permanent residency.