Understanding the Evolution of Permanent Residency in Japan

Japan, known traditionally as “Nippon” or “Nihon,” is often referred to as the “Land of the Rising Sun.” The origin of this name stems from the sight of the sun seemingly ascending from Japan’s horizon.

In recent years, Japan has experienced a remarkable “rise” in other areas as well, particularly in its tourism sector. Despite the challenges posed by the global COVID-19 pandemic, which affected nations worldwide, Japan’s tourism industry has shown resilience. Since the latter part of 2022, there has been a steady increase in the number of foreign visitors to Japan.

According to travel agency JTB Corporation, this upward trajectory is set to continue, with an estimated 33.1 million inbound travelers expected to visit Japan in 2024. This projection marks a significant rise compared to previous years, with a 30% increase compared to 2023 and a 3.8% surge compared to 2019, which represented the pre-pandemic peak over the past decade.

Japan’s unique fusion of modern innovation and timeless traditions has long captivated travelers worldwide, earning a coveted spot on many bucket lists of must-visit destinations. Beyond tourism, Japan’s allure extends to those considering residing and working within its borders.

While Japan, particularly its renowned cities like Tokyo, Kyoto, and Osaka, was once notorious for its high cost of living at the start of the millennium, recent trends suggest a shift. These cities are reclaiming their status as desirable locations for both professional opportunities and residential appeal.

Tokyo, Kyoto and Osaka consistently receive high rankings as top cities on global lists. Factors contributing to their esteemed status include safety levels, environmental sustainability, access to nature, healthcare quality, cultural richness, educational opportunities, robust infrastructure and cost of living considerations.

Shifting PR inquiries in Japan

An indication of this positive trajectory is evidenced by the growing number of inquiries Fragomen receives regarding permanent residency (PR) in Japan. According to data from the Japan Immigration Services Agency (ISA), as of the end of June 2023, individuals holding PR status represented the largest cohort of foreign nationals residing in Japan, marking an increase of nearly 4% from June 2022. This group now accounts for 27.3% of all foreign residents in the country, underscoring the attractiveness of Japan as a destination for long-term settlement.

From both an employer and employee standpoint, obtaining PR in Japan is increasingly appealing, as it offers distinct advantages compared to a Japan work visa, providing stability and flexibility for individuals residing in the country.

One notable advantage of Japan PR is its independence from employer sponsorship. Unlike a work visa, PR status allows individuals to remain in Japan even during periods of unemployment, offering a crucial safety net in case of unexpected job loss. Additionally, PR holders are relieved from the obligation of renewing their residence status, eliminating the risk of inadvertently overstaying their visa validity.

Moreover, PR opens doors for individuals to fully embrace Japanese culture and lifestyle, even beyond their working years. Those holding PR status have the option to retire in Japan, immersing themselves in the rich cultural heritage and scenic landscapes the country has to offer.

The recent depreciation of the yen since 2020 has further enhanced the appeal of Japan as a destination for foreigners. With a lower cost of living, Japan becomes even more enticing for individuals considering long-term settlement or retirement in the country.

Assessing changes to PR in Japan

In the past, obtaining PR in Japan typically necessitated a continuous residency of at least 10 years. This requirement stemmed from the government’s perspective that individuals who had resided in Japan for such a duration would likely have integrated into Japanese society. Consequently, Japan has historically maintained one of the most homogenous societies globally.

However, with Japan confronting its most significant demographic challenges since the population peak in 2008, there is a growing recognition of the need to address labor shortages resulting from declining birth rates and an aging population. In response, there has been a shift in perspective regarding PR eligibility, with the potential for greater openness to foreign residents.

From a legal standpoint, this shift reflects a pragmatic approach aimed at bolstering Japan’s workforce and mitigating demographic pressures. By considering adjustments to PR requirements, the Japanese government may explore avenues to attract and retain skilled foreign workers, thereby contributing to the country's economic stability and vitality. Therefore, ongoing efforts by the Japanese authorities to make PR in the country more readily available can be seen, including:

• • Before 2012, foreign nationals could apply for PR after 10 years of residency in Japan. In 2012, the Highly Skilled Foreign Professional (HSFP) visa shortened the residency requirement to five years for PR eligibility.
  • The introduction of the Highly Skilled Professional (HSP) visa in 2015, comprising HSP (i) and HSP (ii), evolved from the HSFP visa. HSP (ii) offers benefits similar to PR, such as sponsoring a domestic helper and accompanying parents/parents-in-law, but requires employment in Japan.
  • Points-based PR eligibility was introduced in 2017, reducing residency requirements to 3 years for 70–79 points and one year for 80 points and above. Japan now has one of the shortest mandatory residency periods (one year) for PR eligibility among countries.
  • In 2023, the J-Skip visa, a subset of HSP, was introduced, allowing eligibility for PR application after one year of residency in Japan.
  • PR is also available for accompanying spouses and children who have resided in Japan for three years or more under the above schemes, primarily focusing on foreign nationals working in Japan.

Recent news regarding Japan PR may catch the attention of those interested in this status. The government is considering proposals to revoke PR for individuals who do not fulfill tax and/or social insurance contributions. Currently, PR can only be revoked by the government under specific circumstances, such as misinformation during application or criminal activity.

While this might seem like a step backward from the trends mentioned earlier, we believe it signals a preparation for an increase in PR grants. Given Japan’s need for foreign nationals to support its economy amidst aging and slow population growth, this move indicates a positive outlook for those interested in Japan PR.

Competition for global talent

Companies are increasingly considering supporting PR applications to differentiate themselves as preferred employers, providing assurance to employees of long-term commitment.

Despite persistent geopolitical tensions, Japan’s appeal to foreigners is growing rapidly. With more than 20 years of on-the-ground experience, Fragomen offers comprehensive immigration services in Japan, including PR eligibility assessments and assistance with PR applications. Our dedicated team has a proven track record of successfully supporting numerous PR applications.

Need to know more?

For more information regarding PR in Japan, please contact Senior Business Immigration Manager Alfred Chong at [email protected] and Senior Business Immigration Consultant Jeremy Chua at [email protected].

This blog was published on 10 May 2024, and due to the circumstances, there are frequent changes. To keep up to date with all the latest updates on global immigration, please subscribe to our alerts and follow us on LinkedIn, X, Facebook and Instagram.