Foreign People Receiving Income outside Japan
Spouse Visa, Extension, and PR for Foreigners Receiving Overseas Salary or Compensation While Living in Japan
Many foreign nationals residing in Japan on a spouse visa continue to receive salaries or freelance compensation from overseas companies—such as U.S.-based IT firms or EU clients—while working remotely from Japan. This increasingly common arrangement brings up important legal and immigration considerations, particularly for spouse visa holders and those aiming for permanent residency.
Overseas income must be reported in Japan—even if taxed abroad. It’s a common misconception that foreign income is exempt from Japanese tax reporting if tax was already paid in the source country. However, under Japan’s global income taxation rules, residents must declare all worldwide income.
To avoid double taxation, Japan offers a system known as the Foreign Tax Credit (外国税額控除). This allows individuals to deduct taxes paid abroad from their Japanese tax liability. While useful, the process is often complicated by currency conversion, differing tax years, and local filing rules. If you’re unsure, consulting with a licensed tax accountant or your local tax office is highly recommended.
Why Reporting Foreign Income Matters for Visa & PR
When applying to extend a spouse visa or obtain permanent residency in Japan, it’s not enough to simply earn a good income—you must prove it through proper tax filings. Immigration authorities review Japanese-issued tax documents to confirm your financial stability.
Many applicants fail to declare their overseas income in Japan, leading the Immigration Bureau to assume they have no taxable income, which can negatively affect visa renewal or PR outcomes.
- Visa renewal or PR application may be denied due to perceived lack of income.
- Income level is a key indicator for whether the foreign spouse is financially self-sufficient or supported by their Japanese spouse.
- Document transparency is critical. Bank records, payment contracts, and translation of foreign pay slips may be required to support your case.
Key Takeaways for Remote Workers on Spouse Visas
- Declare your global income via the Japanese tax system—even if you pay tax overseas.
- Use Japan’s foreign tax credit system to avoid double taxation.
- Prepare proper tax documents for Immigration when applying for a visa renewal or PR.
- Consult with a visa expert or accountant to ensure accuracy and compliance.
At Continental Immigration Consulting, we’ve helped numerous foreign nationals working remotely for foreign companies successfully maintain or upgrade their spouse visa status and transition to permanent residency in Japan. We provide thorough consultation and documentation support tailored to complex income structures involving foreign compensation.
Professional
Masakazu Murai
Immigration consultant, financial advisor
18 years’ experience in Investment Banking at Mitsubishi UFJ Morgan Stanley (JV, MUFG Bank and Morgan Stanley). He has provided financial advisory to over 500 entrepreneurs and senior managers.
He now supports numerous foreign nationals and remote professionals navigating Japan’s visa system.
Gyoseishoshi Immigration Lawyer
CMA (Japanese financial analyst license)
CFP (Certified Financial Planner)
MBA in Entrepreneurship (Hosei Business School)
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