【Must-Read for Those Considering Permanent Residency!】How Much Annual Income Do You Need?

As foreigners live longer in Japan, many consider applying for permanent residency. However, the application process has strict requirements, including annual income and tax payment history. This article clearly explains the basics of permanent residency, its requirements, and the estimated annual income needed.

What is Permanent Residency?

“Permanent residency” is a status of residence allowing indefinite stay in Japan. Its key feature is essentially unrestricted employment, enabling freedom to change jobs or start your own business.

For example, statuses like “Engineer, Economist, Specialist in Humanities/International Services” or “Dependent” have restrictions on permissible occupations and activities. Obtaining permanent residency removes these limitations. Another major benefit is the stability it provides, as there is no need to renew your status of residence.

However, obtaining permanent residency is not easy. You must meet the criteria set by the Ministry of Justice and undergo a comprehensive review of your conduct, financial capacity, social stability, and other factors. In essence, permanent residency serves as proof of being a trustworthy resident in Japan.

Requirements for Permanent Residency

The main requirements for permanent residency are: “good conduct,” “the ability to support oneself independently,” and “being in Japan’s interest.”

First, it is crucial that you have no outstanding taxes or social insurance premiums. Next, you must have resided continuously in Japan for a certain period. Generally, at least 10 years of residence is required, though this period may be shortened for “spouses of Japanese nationals” or “highly skilled professionals.”

Particular attention should be paid to the “livelihood requirement.” This means the applicant and their family must be able to live on stable income without relying on public assistance. Therefore, not only the annual income amount but also factors like the presence of dependents, the stability of the employer, and tax payment history are subject to review. Consequently, the emphasis is not merely on having a high income but on having a stable foundation for living.

How much annual income is required?

The benchmark annual income emphasized for permanent residency applications fundamentally varies by household composition. For example, for a single applicant, an annual income of around ¥3 million is generally considered the minimum threshold. This assumes stable employment, such as full-time employment.

Additionally, for each dependent family member, an increase of approximately ¥700,000 to ¥1 million is typically required. For instance, a household with a spouse and one child would need an annual income of ¥4.5 to ¥5 million or more as a guideline.

However, the assessment considers more than just income; past tax payment records, years of employment, and savings amounts are also reviewed. For example, even if the annual income meets the standard, frequent job changes or instances of unpaid or late taxes can lead to rejection. Organizing a stable employment history and tax payment status, then preparing application documents reliably and accurately, is the most direct path to permanent residency.

Summary

Applying for permanent residency requires not only sufficient annual income but also a stable living foundation and social credibility. For single applicants, aim for around ¥3 million or more; for those with families, around ¥5 million. It is crucial to organize your tax payment history and employment records before proceeding with your application preparations.


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