How long does unpaid Japanese tax follow you after you leave? — Additional taxes, seizure, and your next visa application
Leaving Japan does not end your tax obligations. Fall behind, and delinquent tax (2.8% a year in Reiwa 8 (2026), 9.1% after two months) and additional tax for failure to file (5–30%; 40% heavy additional tax for concealment) are added on top, while deposits and property left in Japan can be seized. The heaviest consequence comes later: Immigration Services Agency guidelines evaluate unfulfilled tax obligations as a negative factor in extensions of stay, changes of status, and permanent residence. Kohinata, Bunkyo-ku; 5 minutes from Myogadani Station.
Yes, it follows you. Leaving Japan does not extinguish your tax obligations. Delinquent tax (2.8% a year in Reiwa 8 (2026), 9.1% after two months) and additional tax for failure to file (5–30%) are added on top, and any bank account or property you left behind in Japan can be seized. The heaviest consequence of all is the next time you apply for a visa.
This page is for people who are leaving Japan, or who have already left. It traces what happens, and in what order, if you do not pay, using the statutes themselves and published official material. What you need to notify before you leave in order to keep the normal filing deadline is covered in Does a tax agent in Japan (nozei kanrinin) need a qualification, and can a company act as one?; the process of selling before you leave is set out in our feature on selling property before leaving Japan.
Last updated: 8 September 2026
Once you have left, does Japanese tax stop following you?
It does not. The State's right to collect national tax (the right of collection) is extinguished by prescription if it is not exercised for five years from the statutory due date (Act on General Rules for National Taxes, Article 72, paragraph 1). But it is a mistake to read this as a five-year countdown after which the debt quietly falls away.
Paragraph 2 of the same article provides that this prescription need not be invoked, and its benefit cannot be waived. Prescription is not something that takes effect only once a party asserts it; it operates as a matter of law. And where a demand for payment or a similar step is taken, the period stops running at that point. In practice, where the tax office knows about the arrears and has issued a demand, five years does not simply pass by unnoticed.
More fundamentally, leaving Japan and owing Japanese tax are two separate things. Capital gains arising from the sale of real estate located in Japan are subject to Japanese income tax wherever the seller lives.
How much is added if you are late?
Two things are added: delinquent tax (interest charged on late payment, accruing by the day) and additional tax (a penalty for the failure to file itself).
Delinquent tax
| Period | Up to the day two months after the day following the payment due date | Thereafter |
|---|---|---|
| Reiwa 7 (2025) | 2.4% a year | 8.7% a year |
| Reiwa 8 (2026) | 2.8% a year | 9.1% a year |
The rates are reviewed every year, and for Reiwa 8 (2026) they went up from the year before (National Tax Agency, "Rates of delinquent tax"). By design, the rate more than triples once the two-month mark passes.
Additional tax for failure to file
For the Reiwa 5 (2023) tax year onwards — that is, where the statutory filing deadline falls on or after 1 January Reiwa 6 (2024) — the rates are as follows.
| At what stage the return was filed | Portion up to 500,000 yen | Portion above 500,000 yen up to 3,000,000 yen | Portion above 3,000,000 yen |
|---|---|---|---|
| Late return filed voluntarily before advance notice of a tax office audit | 5% | 5% | 5% |
| Filed after advance notice, but before a determination resulting from the audit could be anticipated | 10% | 15% | 25% |
| Filed after the audit, or a determination was issued | 15% | 20% | 30% |
The following increases also apply.
| Circumstance | Increase |
|---|---|
| Additional tax for failure to file, or the like, has been imposed — or is found to have been properly imposable — on income tax for the previous year or the year before that | +10% |
| Books and records were not produced during the audit, or recorded sales figures come to less than one half of the true figure | +10% |
| Recorded sales figures come to less than two thirds of the true figure | +5% |
Heavy additional tax
Where all or part of the facts have been concealed or falsified, heavy additional tax (for concealment or falsification) is imposed in place of the additional tax.
| Category | Rate |
|---|---|
| Imposed in place of additional tax for failure to file | 40% (Act on General Rules for National Taxes, Article 68, paragraph 2) |
| Imposed in place of additional tax for understatement | 35% (same article, paragraph 1) |
| Where additional tax for failure to file, or the like, has been imposed within the past five years | +10% on the above (same article, paragraph 4; in force from 1 January Reiwa 6 (2024)) |
If you come forward first, is the penalty lighter?
It is. This is the single most important point in this article.
Look at the table above again. For the very same failure to file, coming forward before advance notice of an audit costs 5%; filing after an audit costs up to 30% (plus the increases). That is a sixfold difference.
Further, if all of the following conditions are met, no additional tax for failure to file is imposed (National Tax Agency, Taxanswer No.2024).
| # | Condition |
|---|---|
| 1 | The late return is filed voluntarily within one month of the statutory filing deadline |
| 2 | The full amount of tax payable under that late return has been paid by the statutory payment due date (or, where direct debit has been arranged, by the day the late return was filed) |
| 3 | In the five years counting back from the day before the late return was filed, no additional tax for failure to file and no heavy additional tax has been imposed, and this exemption has not previously been applied |
Assuming that it is already too late, and leaving it alone, is the most expensive thing you can do. The moment you notice is always the best moment to act.
What happens to the assets you left in Japan?
If the arrears continue, the process moves through a demand for payment to a delinquency disposition — that is, seizure. Living abroad is no obstacle to the seizure of assets located in Japan.
The things people most commonly leave behind on departure are exactly the things exposed.
| What people commonly leave behind | The issue |
|---|---|
| A Japanese bank account | Many people keep one open after leaving. Sometimes the account that received the sale proceeds is still sitting there |
| Property kept rather than sold | If it is let out, the rental income comes into the picture as well |
| The right to a refund of a security deposit or guarantee money | Money due back to you after you vacate a rented property |
| An unclaimed tax refund | Where you are waiting for a refund of the 10.21% withheld at source |
The last row deserves particular attention. When a non-resident (for Japanese tax purposes) sells real estate in Japan, the buyer withholds 10.21% of the price and pays it over to the tax office (Income Tax Act, Article 161, paragraph 1, item 5 and Article 212, paragraph 1, among others). In many cases part of that is refunded once a final tax return is filed. If you do not file, you never receive the refund, while the principal tax, the additional tax and the delinquent tax keep mounting up. Not filing because you do not want to pay is the classic case of a decision that costs more, not less.
Can the Japanese authorities reach you abroad?
A mechanism exists.
Japan is a party to the Convention on Mutual Administrative Assistance in Tax Matters (in force for Japan from 1 October 2013). The Convention has the parties assist one another with (1) exchange of information, (2) assistance in the recovery of tax claims — where a delinquent taxpayer's assets are in another party's territory, that party can be asked to recover the tax — and (3) assistance in the service of documents (Ministry of Finance, "Key points of the Convention on Mutual Administrative Assistance in Tax Matters"). There are 122 parties besides Japan, extending to 140 countries and jurisdictions through territorial extension (Ministry of Finance, as of 1 July 2023).
That said, do not read more into this than is there. Parties to the Convention may enter reservations category by category, and some have reserved on assistance in the recovery of tax claims. Whether such assistance is in fact available in the country where you live differs from country to country.
And in practical terms, long before the question of whether the Convention can be used arises, there are the assets you left behind in Japan. The ones listed in the previous section.
Is the heaviest consequence really the next visa application?
It is — and it is the point most often overlooked.
People often leave Japan certain that they will never be back, and then return a few years later for work, for family reasons, or for business. When they do, their tax record is read.
Extension of period of stay and change of status of residence
The Immigration Services Agency of Japan's "Guidelines for permission for change of status of residence and extension of period of stay" (last revised June Reiwa 8 (2026)) list "fulfilment of tax and other obligations" as the seventh factor to be considered, and state:
Where a tax obligation exists, the applicant is required to have fulfilled that obligation, and where it has not been fulfilled this is evaluated as a negative factor. For example, a person who has received a criminal sentence for failure to fulfil a tax obligation will be judged not to have fulfilled it; and even where no sentence has been imposed, cases in which a large amount of unpaid tax or a long period of non-payment comes to light will be treated in the same way where they are malicious.
The revision of June Reiwa 8 (2026) added the following note to this item.
(Note) A decision on whether to grant permission may be made taking into account information on the status of fulfilment of tax and other obligations provided by relevant agencies at the Agency's request.
The assumption that what you do not mention will not be known has been dismantled in express terms.
Permission for permanent residence
The "Guidelines for permission for permanent residence" (revised 24 February Reiwa 8 (2026)) set out what is required for permanent residence to be recognised as being in the interests of Japan:
The applicant must not have received a fine, a sentence of imprisonment or the like. Public obligations (the payment of taxes and of public pension and public health insurance contributions, together with the obligations to make notifications and the like prescribed by the Immigration Control and Refugee Recognition Act) must have been properly fulfilled.
A note is attached:
※ As regards the fulfilment of public obligations, even where payment has been made by the time of application, if it was not made within the original payment period it will, in principle, be evaluated negatively.
In other words, the guidelines state expressly that settling everything later will not do. The test is not whether you paid, but whether you paid within the deadline.
Capital gains in the year you sell a property tend to be large. Non-payment in that one year stays on the record for a permanent residence application five or ten years later, or for the renewal of a Business Manager status of residence. A tax problem does not stay inside tax.
(On statuses of residence for foreign nationals running a business in Japan, Starting a group home business as a foreign national also covers the requirements for the "Business Manager" status.)
There are years I never filed — what should I do?
Leaving it alone is the most expensive option. Here, at least, is the order of steps.
| Step | What to do |
|---|---|
| 1 | Write down the years involved and the approximate amounts (the sale contract, the closing settlement statement, records of tax withheld) |
| 2 | Consult a licensed tax accountant (zeirishi). The rate of additional tax turns on whether advance notice of an audit has already arrived (5%, or 15–30%) |
| 3 | If you have no point of contact in Japan, appoint a tax agent in Japan and file the notification (Act on General Rules for National Taxes, Article 117) |
| 4 | File the late return and pay. If you cannot pay in a single payment, discuss how that is handled with the licensed tax accountant as well |
Individual judgements are made by a licensed tax accountant. What we do is help you assemble the real estate side of the picture — the record of the sale, the documentation of acquisition cost, the closing settlement — and put you in touch with a licensed tax accountant, with whom you contract directly.
What can Yotsuba Real Estate do here?
Here, honestly, is what we can and cannot do.
| Who | What |
|---|---|
| Yotsuba Real Estate Co., Ltd. | Planning the sale backwards from your departure date. Sequencing the closing date and the date the tax agent notification is filed. Help in tracking down documentation of acquisition cost (the purchase contract and receipts from when you bought). Putting you in touch with a licensed tax accountant or a judicial scrivener (shiho-shoshi). Correspondence in Japanese, English and Chinese (traditional and simplified) |
| A licensed tax accountant, with whom you contract directly | Accepting appointment as your tax agent in Japan, preparing the notification, calculating the capital gain, filing the final tax return, making payment. Deciding how a late return should be handled |
| An administrative scrivener (gyosei-shoshi), under a separate contract | Preparing application documents relating to status of residence |
What we cannot do: calculate the tax and prepare the return, or decide how a late return should be handled (both are for a licensed tax accountant); act as agent in registration applications (for a judicial scrivener); negotiate as agent in contentious matters (for an attorney).
Each of these is taken on by a separate business entity under a separate contract. With licensed tax accountants, judicial scriveners and attorneys, we direct you to contract with them directly, and we receive no referral fee. Real estate brokerage is undertaken by Yotsuba Real Estate Co., Ltd.; the preparation of application documents relating to status of residence is undertaken by Yotsuba Administrative Scrivener Office. Each is a separate contract.
The surest course of all is never to be in the situation this article describes. File the notification of your tax agent in Japan before you leave, and file your return by the normal deadline the following year. Do that, and nothing described in this article happens. The order of steps is set out in Does a tax agent in Japan need a qualification, and can a company act as one?.
What this article is based on
| Point | Source |
|---|---|
| Extinctive prescription of the right to collect national tax (five years from the statutory due date); prescription need not be invoked and its benefit cannot be waived | Act on General Rules for National Taxes (Act No. 66 of Showa 37 (1962)), Article 72, paragraphs 1 and 2. Last amended 31 March Reiwa 4 (2022) |
| Rates of delinquent tax (1 January to 31 December Reiwa 8 (2026): 2.8% a year, 9.1% a year after two months. Reiwa 7 (2025): 2.4% / 8.7%) | National Tax Agency, "Rates of delinquent tax" (on and after 1 January Reiwa 3 (2021)) |
| Rates of additional tax for failure to file (5% / 10, 15, 25% / 15, 20, 30%), the repeat increase (+10%), the increases for non-production of books and the like (+10% / +5%), and the exemption for voluntary filing within one month | National Tax Agency, Taxanswer No.2024, "If you have forgotten to file your final tax return" (law and regulations as at 1 April Reiwa 7 (2025)); Act on General Rules for National Taxes, Articles 66 and 60, among others. Applies from the Reiwa 5 (2023) tax year onwards (where the statutory filing deadline falls on or after 1 January Reiwa 6 (2024)) |
| Heavy additional tax (40% in place of additional tax for failure to file, 35% in place of additional tax for understatement, +10% for repetition within five years) | Act on General Rules for National Taxes, Article 68, paragraphs 1, 2 and 4. Paragraph 4 in force from 1 January Reiwa 6 (2024) |
| Withholding at source on the purchase of real estate from a non-resident (10.21%) | Income Tax Act (Act No. 33 of Showa 40 (1965)), Article 161, paragraph 1, item 5 and Article 212, paragraph 1; Act on Special Measures for Securing Financial Resources for Reconstruction, Article 28; National Tax Agency, Taxanswer No.2879 |
| Appointment of a tax agent in Japan and notification of the appointment | Act on General Rules for National Taxes, Article 117 |
| Convention on Mutual Administrative Assistance in Tax Matters (exchange of information, assistance in the recovery of tax claims, assistance in the service of documents; in force for Japan from 1 October 2013; 122 parties besides Japan, extending to 140 countries and jurisdictions through territorial extension) | Ministry of Finance, "Key points of the Convention on Mutual Administrative Assistance in Tax Matters"; Ministry of Finance, "Japan's tax treaty network" (as of 1 July 2023). Parties to the Convention may enter reservations category by category, and some have reserved on assistance in the recovery of tax claims |
| Fulfilment of tax obligations in extension of period of stay and change of status of residence (evaluation as a negative factor, treatment of large or long-standing non-payment, provision of information by relevant agencies) | Immigration Services Agency of Japan, "Guidelines for permission for change of status of residence and extension of period of stay", item 7 (established March Heisei 20 (2008); last revised June Reiwa 8 (2026)) |
| Fulfilment of public obligations in permission for permanent residence (even where payment has been made by the time of application, failure to pay within the original period is in principle evaluated negatively) | Immigration Services Agency of Japan, "Guidelines for permission for permanent residence", 1(3)イ (revised 24 February Reiwa 8 (2026)) |
This page provides general information only. Individual tax judgements are made by a licensed tax accountant, and whether a status of residence is granted is decided by the Immigration Services Agency of Japan. The provisions that apply, and the conclusions that follow, change with individual circumstances. The rates of additional tax and delinquent tax are subject to legislative amendment and annual review.
About the author Joji Uramatsu | Representative Director of Yotsuba Real Estate Co., Ltd. and its full-time Real Estate Transaction Specialist (takken-shi). Administrative scrivener. Former China Bureau Chief of the Mainichi Shimbun, with 34 years as a journalist; posted to China, Taiwan and Thailand in that role. Passed the Certified Social Insurance and Labour Consultant examination (practice scheduled to open September 2026).
Related links
- Does a tax agent in Japan need a qualification, and can a company act as one?
- Feature: selling your property before you leave Japan
- A guide to selling Japanese real estate for overseas owners (for those already living abroad)
- Status of residence and visa applications (Yotsuba Administrative Scrivener Office)
- Contact us
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