Saving money

A non-permanent resident is a non-Japanese person with 5 years or less in Japan in total over the past 10 years. Interest and dividends from home are taxed in Japan only on the part paid in or sent to Japan, and money sent counts as that year's foreign income first: send 500,000 yen in a year with 100,000 yen of interest and 100,000 yen is taxable. Gains on foreign shares bought while non-permanent are taxed anyway. After 5 years, worldwide income is taxed. Also: the 200,000 yen filing line and bank reports on transfers over 1 million yen. Checked October 2026.

Yes, foreigners can invest in Japan, and the reason to care is simple: prices rose 1.9% in August 2026 while ordinary savings paid 0.322% (Bank of Japan, September). Real wages fell four years running (2022-2025), the employees' pension takes 18.3% split with your employer, the lump-sum refund stops at 60 months, and the pension replacement rate is projected to fall from 61.2%. What differs for foreigners, and how the years until you leave decide your first step.

Japan's Employees' Pension (kosei nenkin) covers foreign workers regardless of nationality; part-timers at 20 or more hours a week are enrolled too, students excepted (the 88,000 yen condition ended in October 2026). The premium is 18.3% of pay split half and half with the employer, so 9.15% from you. With a qualifying period of 10 years or more you receive a pension for life from 65, paid to a bank abroad after you leave, and 20 of the 24 social security agreement countries let you add home-country years. Leaving before 10 years, the lump-sum withdrawal returns up to 5 years' worth within 2 years of leaving, but it erases those years; if you might return or seek permanent residence, keeping the record leaves more open. The fork is how long you will be in Japan.