While Japan may be an unconventional choice of location to retire, it’s an increasingly attractive one. Though I am not yet retired, the relaxed pace of life outside of major Japanese cities has been a highlight of my time here. Amazingly, this is also where the most highly affordable properties can be found.
Japan’s natural beauty, the vast number of places of cultural and historical significance to be discovered here, and its generous and kind people make it the perfect destination after escaping the rat race.
Unlike other countries, Japan does not offer a retirement visa or a route to Japanese residency by way of investment. This means that if you wish to spend your retirement years in Japan full time, it will take a little out-of-the-box thinking and some extra effort. But it is possible! We will explore both long-stay and short-stay options in this article.
Some Considerations Before Choosing to Retire in Japan
There are many reasons foreign visitors fall in love with Japan. Indeed, many of the things you may experience as a visitor are precisely what makes the country such a joy to live in full time. For example, Japan has deeply-rooted respect for both people and things. You can see this in the cleanliness of major cities, sense of order, and low crime rates. And yet, like anywhere, there are some aspects of life in Japan that are less apparent until you actually move there.
So what is the reality of life in Japan as a foreign resident, and as a retiree? Let’s look at a few key considerations.
Cost of Living in Japan
The cost of living has become a topic of concern in much of the developed world, and Japan is no exception. In my experience, a high cost of living can mean different things for different people. It’s a good idea to check out articles like this one (or watch the video below of a recent tour of a local supermarket) which give a rough average cost of basic goods and services for a single person.
I would stress that if you are looking to move to Japan from Europe or the US, it is very timely in terms of taking advantage of the weak yen. Indeed, the yen has been persistently weak against major currencies in the past several years, in a trend that looks unlikely to ease anytime soon.
The weak yen means that the major cities such as Tokyo or Osaka, which have a reputation for being expensive, have become much more affordable than before. For example, as of 2024, the average monthly rent of a 1K-1DK apartment (that is, one room plus a single separate kitchen or combined kitchen/dining room, usually 25~30m2) in Tokyo ranges between from about $450 in Nerima and Adachi Wards up to around $700 in the more central wards like Shibuya and Minato. This is before monthly charges like maintenance fees and utilities (find out more about the costs of renting an apartment in Japan, including the initial upfront fees here).
That being said, in my view Tokyo should not be the default option. There are a wealth of smaller towns with easy accessibility to the rest of the country that are worth exploring.
Traveling in Japan as a Senior
Retiring in Japan means you can enjoy all the country has to offer, and with more leisure time than ever before! With regional specialty foods, amusing mascots, a wide variety of local traditions, and seasonal festivals, there is an endless supply of domestic travel to explore!
Transport links and the reliability of local public transport around Japan is arguably the best in the world. On the main island of Honshu, for example, the bullet train whisks you between Osaka and Tokyo in under 2.5 hours. It is only in rural regions and on the islands of Shikoku, Kyushu, and Hokkaido where having a car may become necessary.
Since travel costs can add up, it is worth becoming acquainted with the various senior travel discount schemes for Japan residents. Rather than being applicable nationwide, they vary by location and service provider. (Unfortunately, English information on these programs may be lacking, so it is advantageous in these cases to have a Japanese friend guide you in the sign-up process. For example, the Zipangu Club at both JR East and JR West offers an “over-65” discount of 20~30% on nationwide travel for JR lines. (*Note, however, that Japan Rail is composed of several different companies with their own service regions and offerings.) There are also online booking discounts within each line for a low annual fee. Domestic airlines JAL, ANA and Skymark Airlines all offer steep discounts (up to 60% off) to 60+ and 65+ loyalty club members on same-day flights.
While unlikely to have senior discount options, those who want to explore Japan at a more leisurely pace will be delighted to learn that local sightseeing trains have recently had a resurgence in popularity. Complete with fantastic food options, idyllic countryside, and dramatic coastline views, many of these plush new trains have been launched in the last several years. For example, the Kanpachi Ichiroku train runs between Fukuoka’s Hakata Station and Yufuin hot spring town in Kyushu.
Healthcare in Japan and Coverage for Seniors
Japan has an outstanding healthcare system and it outperforms the rest of the OECD group of countries in most metrics. Indeed, the life expectancy in Japan is among the highest in the world, partly due to the healthy traditional diet, but also thanks to reliable medical care.
Japan has mandatory National Health Insurance up to age 75. Registration is mandatory for stays longer than 3 months (*except for those working or with a working Japanese spouse). The monthly premium is determined based on your age and income. US Expats in particular will be pleasantly surprised by how affordable it is, including any applicable copays, which are only up to 30% of the total cost.
You enter into a slightly different system once you reach age 75. Your copayment falls further if you do not have an income comparable to the workforce. An out-of-pocket expense threshold, determined by income, also protects you from incurring excessive emergency care costs. (This may require processing a “Certificate of Application of Maximum Copayment Amount” in advance of a hospital visit).
Social Integration and the Language Barrier
The lack of English proficiency in Japan may be perceived as a negative, but might be a draw for those looking to immerse themselves in Japanese language study. After all, there is no better way to learn than to jump into the deep end! That said, learning Japanese is no easy feat. Integrating yourself into a society with highly complex cultural norms is a major challenge! This is compounded by a lack of exposure to foreigners and foreign cultures, especially for Japanese people outside of major cities.
In fact, many foreign residents of Japan recommend that you should anticipate indefinite status as an outsider. Again, this is not necessarily a disadvantage, but may be a helpful insight when it comes to setting expectations. Of course, there is always potential to make meaningful and long-lasting friendships with locals. Quite often when uncomfortable situations arise between locals and foreigners, it generally has been born out of a misunderstanding, and not malevolent intentions or deliberate discrimination against foreigners. In my experience, learning just a basic level of Japanese and making some friendly gestures, like greeting your new neighbors with a souvenir when you arrive, or attending community events like festivals, is a sure way to foster goodwill.
Bureaucracy in Japan
When was the last time you saw a fax machine in your home country? You may be surprised to learn that fax machines are very much alive and well in Japan, a country lauded as technologically advanced. At my last corporate job in Tokyo, I used a fax machine a few times a week!
And, you’ll find that everyone is still using a hanko seal to sign documents (and you may need to have one made)! Many new residents reflect on excessive bureaucracy when seeking services, especially anything related to immigration/local government and banking. This can be incredibly frustrating when compounded with the language barrier. Intensive procedures are required for both acquiring visas and setting up/running a business in Japan (see below our discussion of Business Manager visa as a route to residency) I highly recommend employing qualified immigration law services such as from Shimizu Immigration Office, and tax accountants rather than attempting to figure things out yourself.
As far as banks are concerned, you will generally need your visa, resident card and My Number card (which takes around one month to receive) to open an account. These days there are many fintech companies such as Wise that offer multi currency accounts. There are options to withdraw yen without large fees from local ATMs.
Recommended watch: Banking in Japan – which bank to choose and the requirements for an account.
Finance and Taxes
It is highly recommended to hire a tax lawyer to advise on the tax implications of relocating to Japan. For example, there may be inheritance tax for those seeking permanent residency (or have a spouse who is a permanent resident). Retire Japan has an excellent forum and YouTube channel which discusses personal finances, investment and retirement planning in Japan.
Climate and natural disasters
Japan is prone to disasters. In particular, typhoons (and landslides/flooding that result from them), and earthquakes. When investing in real estate, it’s important to understand building codes and earthquake reinforcement measures (which I talk about in my guide). There are hot, humid summers and frigid winters. Homes will likely have less insulation than found in western construction.
Visas
Finding a route to Japanese residency as a retiree isn’t clear-cut. There isn’t the option to demonstrate financial independence via savings or homeownership.
Those looking to move to Japan without a local employer may wish to explore the J-Skip, Business Manager visa, or start-up visa (which is only available in select cities). These options require that individuals either own or run a business in Japan. Japan Remotely is a great resources that offers consulting on creative business visa pathways. For example, financially well-off people may pursue a Business Manager visa and a legitimate path to permanent residency by buying a pre-established local franchise.
For those looking to launch something new, Fukuoka is Japan’s top city for start-ups. The city provides free English business consulting services, home and office rent subsidies, tax cuts, and even access to free coworking spaces.
Cultural activities, academic programs, arts and trades programs may also be enjoyable visa tracks. Note, however, that these tracks will have duration limits. For example, student visas can only be renewed for up to 4 years and 3 months.
Business Manager Visa (With or Without Start-up Visa)
The Business Manager visa is probably the only plausible way for a retired foreigner to obtain a longer period of residency (validity is up to 5 years) and subsequently permanent residency. You may not need to overthink this: one increasingly popular business idea is to renovate rural properties in order to run guesthouses (see the video below), which may be less daunting than trying to bring a product to the Japanese market, for example.
To help you get your foot in the door, a number of municipalities have started offering a start-up visa with a validity of 6 months (with the possibility of renewing it once) to help you prepare your business plan and fulfill other requirements for the Business Manager visa application. Be aware that some municipalities have certain target sectors (see Fukuoka as an example).
As far as satisfying the Business Manager visa criteria is concerned, crucially, you do need at least JPY5mn (about $31k) in capital and a physical office space.
Cultural Activities visa (3 months ~ 3 years)
If you are thinking of returning to academia, or looking to dedicate yourself to the study of a craft or skill including martial arts, try the Cultural Activities visa. This visa requires a letter to clarify your activity from the individual or institution with whom you plan to study, as well as the hours per week you plan to dedicate to it (it should be at least 12h/week).
Student visa (3 months ~ 2 years)
Enrolling in a language school and going to Japan on a student visa is a great way to spend a meaningful amount of time in the country. Schools and universities accepting international students will be well-acquainted with the process and what they need to submit to the Japanese authorities as a sponsor.
Wealthy Tourist visa (6 months ~ 1 year)
The regular tourist visa allows a stay of up to 90 days with one renewal permitted. The “Long Stay for sightseeing and recreation” category of visa, AKA Wealthy Tourist visa, however, allows those who can prove a bank balance of ¥30mn equivalent (about $230k) to stay for a maximum term of 1 year (renewable at 6 months).
So, should I retire in Japan?
Although you might be retired, you may in fact need to come out of retirement to some extent in order to relocate to Japan for a longer period than what is permitted for tourists or with a view to becoming a permanent resident, simply due to the lack of visa options at present. In my view, living in Japan for any length of time is an enriching and rewarding experience, so it is well worth the effort and investment involved, even if you decide to spend even just a small part of your retirement years here.
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