International tax consultation
For those ready to change their lives
For Those Ready for Change.
From Personal Overseas Relocation to Corporate International Tax.
Our international tax consultations cover overseas relocation and cross-border inheritance, as well as corporate overseas expansion and international transactions.
Overseas subsidiary and branch formation and operations, transfer pricing, CFC rules, foreign tax credits, overseas subsidiary dividends, and cross-border payments and withholding. We review your company and transactions to identify issues and next steps. Companies without an ongoing advisory engagement and those seeking a second opinion are also welcome.
Individuals and companies can book through the paid consultation options below. If detailed document review, further research, or coordination with local specialists is needed, we explain the scope and fees separately.
Capital Flight Among Wealthy Individuals Is Drawing Attention.
Where you invest your assets and where you live with your family affect the money you retain, your children's education, and your future life. Moving to Singapore or Dubai is a decision that brings together tax considerations and your family's future.
Living overseas does not automatically eliminate Japanese tax. There are tax matters to review before, during, and after relocation.
According to Nomura Research Institute estimates, Japan had 1.653 million affluent and ultra-affluent households with net financial assets—financial assets less liabilities—of at least JPY 100 million in 2023, roughly double the 835,000 households in 2000.
High-Net-Worth and Ultra-High-Net-Worth Households in Japan
2000–2023 / Net financial assets of at least JPY 100 million / Unit: 10,000 households
Source: Nomura Research Institute's2014・Materials Published in 2025. Figures count households, not individuals. Only published estimate years are shown.
Capital flight means capital flowing out of a country to overseas destinations. Income tax and inheritance tax burdens are among the factors that cannot be ignored when considering why it occurs.
Why Singapore or Dubai?
Once wealth has been built, the focus extends beyond how much you earn to how much you retain and pass to the next generation. Even with the same assets and returns, different taxes on investment income change how much can be reinvested. That difference compounds over time.
In Singapore, gains on sales of shares and similar assets held as personal investments are generally not taxed. In the UAE, including Dubai, personal investment income is also distinguished from business income subject to corporate tax. However, transactions conducted as a business may still be taxed, and taxes imposed by the country where the investment is made may still apply.
When choosing where to relocate, consider not only taxation but also the environment in which you want to raise your children, where to base your work, and travel to and from Japan. Starting a new life with a spouse and children requires considering family wishes alongside assets and business circumstances.
Reference on the system:Singapore IRAS: Gains from Sales of Personal Investments ／ UAE Federal Tax Authority: Corporate Tax for Natural Persons
Does moving abroad mean no Japanese tax?
Some countries have no equivalent to inheritance tax. Singapore, for example, abolished Estate Duty in 2008. The UAE, including Dubai, also has no inheritance or estate tax.
Japanese inheritance tax does not cease to apply simply because you move abroad and transfer assets overseas. Overseas assets may remain taxable depending on the domicile, nationality, and residence history of both the deceased and the recipient.
On the other hand, overseas assets may fall outside Japanese inheritance tax if certain conditions are met.
For Japanese income tax, residents are generally taxed on worldwide income, while non-residents are generally taxed only on Japan-source income.
In other words, carefully considering overseas relocation and how you hold assets may change your Japanese income tax and inheritance tax exposure.
Some countries also exempt financial income such as deposit interest under certain conditions. Depending on the income type, source, and destination country's rules, income may be untaxed in both Japan and the country of residence.
However, the underlying determination of non-resident status and the conditions for inheritance tax treatment must be checked against individual circumstances.
The same JPY 500 million, but a difference of about JPY 63.83 million after 10 years.
Suppose JPY 500 million in financial assets earns 5% annually and JPY 20 million is spent on living expenses each year. How much difference emerges after 10 years between a Japanese model in which all investment gains are realized and taxed annually and a model with no tax on those gains?
10-Year Asset Growth while Investing and Paying Living Expenses
Starting Assets: JPY 500 Million / Annual Return: 5% / Annual Living Costs: JPY 20 Million
Japan Model: After 10 YearsApproximately JPY 499 millionInvestment Returns Taxed at 20.315% Annually
Tax-Free Model: After 10 YearsApproximately JPY 563 MillionNo tax on investment gains
The Difference After 10 Years IsApproximately JPY 63.83 million.
Both figures are after spending a total of JPY 200 million on living costs over 10 years.
View Assets at Each Year-End
| Years later | Japan | Tax-Free Model |
|---|---|---|
| 0 | JPY 500 million | JPY 500 million |
| 1 | JPY 499.92 million | JPY 505 million |
| 2 | JPY 499.84 million | JPY 510.25 million |
| 3 | JPY 499.75 million | JPY 515.76 million |
| 4 | JPY 499.67 million | JPY 521.55 million |
| 5 | JPY 499.57 million | JPY 527.63 million |
| 6 | JPY 499.48 million | JPY 534.01 million |
| 7 | JPY 499.38 million | JPY 540.71 million |
| 8 | JPY 499.27 million | JPY 547.75 million |
| 9 | JPY 499.17 million | JPY 555.13 million |
| 10 | JPY 499.06 million | JPY 562.89 million |
Assumptions: A 5% return is earned on assets at the beginning of each year, with all gains realized. After tax, JPY 20 million in living expenses is deducted at each year-end, and the remainder becomes the following year's invested principal. The Japan model assumes a constant 20.315% tax rate for 10 years, reflecting gains on listed shares and similar assets. This does not mean unrealized gains are taxed annually.
Both scenarios start with JPY 500 million in financial assets on hand. Exit tax and relocation costs have not been deducted from this amount. The tax-free model assumes a 0% tax burden on investment returns, including source-country withholding tax; moving to Singapore or Dubai alone does not necessarily achieve this. Fees, currency and price changes, losses, and tax reforms are not considered. Investment results are not guaranteed.
Tax rate reference:National Tax Agency: Taxation of Share Transfers. An illustrative calculation by our firm based on specified assumptions.
First-year investment gains are JPY 25 million in both models. In the Japanese model, tax is JPY 5,078,750, leaving JPY 19,921,250 after tax. This falls JPY 78,750 short of the JPY 20 million living expenses, requiring a small withdrawal of principal. The following year's returns fall with the lower principal, and withdrawals gradually increase.
In the tax-free model, JPY 5 million remains for reinvestment after living expenses. The additional principal generates returns from the following year, allowing assets to grow through compounding.
After 10 years, assets in the Japan model fall by approximately JPY 940,000 from the starting amount, while the tax-free model increases by approximately JPY 62.89 million. Even with the same returns and living costs, asset paths diverge depending on whether after-tax returns leave room for reinvestment.
Exit tax makes planning before relocation especially important.
High-net-worth individuals considering relocation should not overlook Japan's exit tax. Introduced in July 2015, it applies to people who meet conditions including holding at least JPY 100 million in covered assets and, generally, having resided in Japan for more than five years in total during the preceding ten years.
For certain securities and other assets, this system taxes unrealized gains as though the assets were sold on departure, even if no sale occurs. It does not tax the asset value itself, but tax funding may be required without any sale proceeds.
It is too simplistic to say that exit tax is driving an increase in overseas relocation. In fact, it can create a tax liability at the time of departure. That is why it is important to consider not just post-relocation tax rates, but the types of assets held, acquisition costs, unrealized gains, planned business or share sales, and relocation timing. Tax payment deferral is also available under certain conditions.
Removing your Japanese resident registration or obtaining an overseas visa does not by itself make you a nonresident for Japanese tax purposes. Your actual home, work, family, and other circumstances must be reviewed alongside income and assets remaining in Japan after relocation.
Reference on the system:National Tax Agency: Exit Tax Regime ／ Distinguishing Residents from Non-Residents
Our Office Has Supported Overseas Relocation for Approximately 200 People.
It may seem unrealistic to make such a dream a reality, but you can actually see many people abroad who are making that dream come true.
Some people say it is only for tax purposes, but taxes are more like a bonus; many people also say, "Given the future of the world, living globally is a matter of course," or "When considering children's education, overseas is definitely the way to go."
We Have Supported Overseas Relocation for Approximately 200 People.
Whether you are considering Singapore, Dubai, or elsewhere, please consult us if you want to change your life by moving overseas.
We will explain advanced expertise and ideas in an easy-to-understand manner, along with a wealth of examples.
What happens after the consultation?
AFTER THE CONSULTATION
A One-Off Consultation Is Welcome. If You Need Ongoing Support,
A monthly advisory engagement lets you consult us about international tax whenever needed.
We can also join as your second tax advisor while you retain your current advisor.
Starting a business abroad, relocating overseas, business design, and more.
Our principal, tax accountant Kenji Yanagisawa, takes responsibility for the engagement. Fees are charged by time.
Related Articles on Overseas Relocation and International Tax
- Who Is a Resident under the Income Tax Act? Determining Domicile
- How Non-Residency is Determined: Understanding Days of Stay, Third Countries, Family, and Work through Past Tax Litigation
- Tax Deferral for the Exit Tax: From Pre-Departure Procedures to Sale, Return, and Inheritance
- Exit tax on gifts and inheritances
- Is Japan the only country without a days-based criteria for residency determination? Comparing "residents" in 13 countries
Choose How You Would Like to Consult Us.
Consult Directly with Kenji Yanagisawa, Principal and Certified Tax Accountant
For a direct 60-minute consultation with our principal, tax accountant Kenji Yanagisawa, without a preliminary email inquiry, book here. The fee is JPY 55,000 for either an online or in-person consultation.
Where consumption tax applies, it is included in the displayed price. Where export exemption applies, the full displayed amount is the consultation fee. Your total payment remains the same in either case.
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