Exit tax in Japan: does it apply to you when you leave?

Japan’s exit tax (国外転出時課税) hits only people who hold ¥100 million or more in securities and have lived in Japan for more than 5 of the past 10 years, not counting years on certain statuses such as student or business manager.

Most people leaving Japan owe no exit tax. As of October 2026, the National Tax Agency (NTA) says it applies only when both are true on the day you leave: your covered assets are worth ¥100 million or more, and you had a domicile or residence in Japan for more than 5 years in total during the previous 10. For foreigners, years on some statuses, such as student or intra-company transferee, are not counted toward the 5.

This is different from the departure levy some travelers pay when flying out. This page covers only the income tax rule.

What assets are covered?

The NTA lists securities such as shares and investment trusts, silent partnership interests (匿名組合), and open margin or derivative positions, including unrealized gains and losses. Cash, real estate and bank deposits are not on that list.

On departure, the unrealized gain is treated as if you sold. It is taxed as income tax, plus the reconstruction special income tax of 2.1% of the base tax. We did not confirm the base rate from the NTA page, so ask a tax accountant for your figure.

Which years count for a foreign resident?

The NTA leaflet says periods on statuses in Appendix 1 of the Immigration Control Act do not count toward the 5 years. Its examples include diplomat, professor, artist, business manager, legal/accounting services, medical, researcher, educator, intra-company transferee, short-term stay and student.

Appendix 2 statuses (permanent resident, spouse of a permanent resident, long-term resident) are treated differently. Periods in those statuses up to 30 June 2015 do not count. Periods after that date do.

The leaflet names examples only. Your status may not be listed. We did not confirm how every status is treated, such as designated activities or specified skilled worker.

Can you defer the tax?

Yes. The NTA allows deferral for 5 years from departure, extended to 10 by filing an extension notice. It requires:

• appointing a tax agent (納税管理人) with notice before you leave;
• electing deferral on your return and filing the attachment forms;
• giving collateral (担保) for the deferred tax and interest by the filing deadline;
• filing a continuation form (継続適用届出書) by 15 March each year for assets you still hold on 31 December.

Interest tax (利子税) applies during deferral. The deferral ends early if you sell or give away the assets or skip the annual form.

What if you return?

If you come back within 5 years (10 if extended) and still hold the assets, the tax can be cancelled. File an amended return or a refund claim within 4 months of returning. Cancellation is not available for income tied to concealment or false reporting.

Other things to do before you leave

If you hold NISA or other investments, see NISA for foreigners. Once you have left and are a non-resident, Japan taxes only your Japan-source income (National Tax Agency, as of October 2026). For your tax status after you go, read Japan tax residency, and for banking see closing a bank account when leaving Japan.