Inheritance tax in Japan for foreigners: who pays and on what

The inheritance tax Japan charges (相続税, sōzokuzei) is 10% to 55% on an estate’s value above ¥30 million plus ¥6 million per statutory heir. As of October 2026, if you have lived in Japan on a status such as a work visa for 10 years or less of the last 15, generally only property in Japan is taxed if the person who died was on such a status in Japan too or was a foreigner abroad. Permanent residents and spouses of Japanese nationals can be taxed on worldwide assets.

Does Japan have inheritance tax?

Yes. According to the National Tax Agency (国税庁), the tax applies when the net estate is larger than the basic deduction: ¥30 million + ¥6 million × the number of statutory heirs (法定相続人). If the estate is within that amount, no return and no payment are needed.

The tax isn’t charged on what each person receives directly. The taxable estate is split by each heir’s legal share, the rates below are applied to each share, and the total is then divided by what each person actually received.

The National Tax Agency’s own example: a spouse and two children with a taxable estate of ¥152 million. The shares are ¥76 million, ¥38 million and ¥38 million, and the total tax is ¥27 million.

Two rules change the final bill:

• Spouse relief (配偶者の税額軽減). A surviving spouse pays no tax on what they actually receive up to ¥160 million or their legal share, whichever is larger. You must file a return to claim it.
• 20% surcharge. Heirs other than the spouse, parents and children, such as siblings, pay 20% more.

Which foreigners pay inheritance tax on worldwide assets?

It depends on both people: the heir and the person who died. The law (相続税法 Article 1-3) uses three terms.

• Temporary resident (一時居住者): an heir who, at the death, holds a status listed in Appendix 1 (別表第一) of the Immigration Control Act and has lived in Japan 10 years or less in total in the past 15 years.
• Foreign decedent (外国人被相続人): a person who died while living in Japan with an Appendix 1 status. There is no length-of-stay limit.
• Non-resident decedent (非居住被相続人): a person who died with no address in Japan and who either never held Japanese nationality while living in Japan in the last 10 years, or didn’t live in Japan at all in those 10 years.

The status list matters, so here it is in short:

Appendix 2 holders are never “temporary residents” and never “foreign decedents” for this tax. That is why a permanent residency or spouse visa can widen your tax exposure.

Common situations

These rows follow the National Tax Agency’s categories. Real cases often have details that change the answer, such as dual residence or an exit tax deferral (国外転出時課税の納税猶予) taken on or after 1 July 2015.

Which property counts as “in Japan”?

When only Japanese property is taxed, location is decided by type:

• Real estate: where it is.
• Bank deposits: the branch that holds the account. A Japanese bank branch in Japan means Japanese property.
• Shares and bonds: where the issuing company’s head office is.
• Investment trusts (funds): the office that accepted the trust.
• Life and non-life insurance payouts: where the insurer’s head office is.
• Cash and other movable property: where it is.
• Property not on the National Tax Agency’s list: the address of the person who died.

So a Japanese bank account, Japanese shares and a home bought in Japan are taxable in Japan in every case. Money held at a bank branch abroad is foreign property.

How did the rules for foreigners change?

• 2017 reform. From 1 April 2017, inheritances between people temporarily in Japan on Appendix 1 statuses were limited to Japanese property, according to the Ministry of Finance (財務省) bill outline. The same reform taxed Japanese nationals abroad on foreign assets for 10 years after leaving Japan (up from 5) and brought some non-Japanese heirs abroad into worldwide tax. The reform changed gift tax (贈与税) in the same way.
• Later reforms. Tax publishers report that reforms in 2018 and 2021 narrowed the rules further. What counts today is the current law (Article 1-3): a foreigner who dies while living in Japan on an Appendix 1 status is a “foreign decedent” however long they lived here, and a foreigner who dies after leaving Japan is a “non-resident decedent”.

Older English articles may describe the pre-2021 rules. Use the current law and the National Tax Agency’s pages.

What do I do if someone dies?

1. Check whether a return is needed. If the estate is within the basic deduction, there is no return and no tax.
2. Note the deadline. The return and payment are due within 10 months from the day after you learned of the death. A death on 6 January means a 6 November deadline. Late filing or payment can add penalty and delinquency tax.
3. File at the right tax office. If the person who died lived in Japan, file at the tax office (税務署) for their address, not yours.
4. Heirs abroad need a tax agent. An heir with no address in Japan who must file appoints a tax agent (納税管理人) and files a notification.

This page is general information. Inheritance across two countries can also bring home-country tax and treaty questions that this page doesn’t cover. For a real case, talk to a licensed tax accountant (税理士) who handles international inheritance.

More guides

• Permanent residency vs naturalization: weigh the tax side too.
• Sending money from Japan: moving inherited money home.
• Resident tax for foreigners
• Buying an akiya as a foreigner