Inheritance tax in Japan for foreigners: 2026 guide

Expats relocating to Japan should be aware of the country’s inheritance tax rules, which can affect assets left in both Japan and overseas depending on the circumstances. Whether you owe inheritance tax depends on factors including the value of the inheritance, your residency, and your relationship to the deceased.

This guide to inheritance tax in Japan explains who may owe tax, how the system works, and what to do if you need to receive or transfer money from an inheritance.

Wise

Wise can be useful if you need to move inherited money across borders or manage JPY alongside other currencies for planned exchange transactions (subject to transaction limits) without relying fully on a local bank account. It does not replace Japanese filing or tax payment steps, and you should check current product availability, supported currencies, and document requirements for your region before you act.

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Key takeaways

For wider context on local tax rules, see Expatica’s guide to the Japanese tax system.

The information provided here is not intended as professional financial advice. Tax is complicated – especially if you’re an international who may have other duties and liabilities in your home country as well as Japan. Get qualified advice to make sure you submit and pay taxes in the correct way, based on your unique situation.

Who pays inheritance tax in Japan?

The answer is not simply that foreigners do or do not pay. It depends on where the assets are, where the heir is based, and how Japan treats both the deceased and the beneficiary for tax purposes.

When Japanese assets are taxed

Japanese assets are the clearest trigger for inheritance tax in Japan. Nationality alone does not determine whether tax applies, so a foreign heir may still be within scope if the estate includes property or assets treated as located in Japan.

In practice, this often includes:

• Real estate in Japan
• Cash or deposits held with Japanese banks or other financial institutions
• Other rights or properties that Japanese tax law treats as located in Japan

The National Tax Agency (NTA) guidance is a good starting point, but non-Japanese families usually need help translating the rules.

Writer

Gary Buswell

Insider tip

For many expat families, the harder part is quickly locating account records and proving ownership across Japanese and overseas paperwork. This is where using professional help can make things easier.

When worldwide assets may be taxed for foreigners

Whether they do depends on several factors. These include where the heir and deceased are treated as domiciled or resident for Japanese tax purposes, their immigration status in some cases, and the applicable inheritance tax rules.

A common question is whether all foreign residents are treated the same. They are not. Recent arrivals on temporary work visas may be treated differently from people with longer-term ties to Japan, but the outcome depends on the specific facts of each case.

• It may apply depending on the heir’s and the deceased’s domicile or residence for Japanese tax purposes.
• Immigration status may also affect the scope of taxation in some cases.
• The outcome depends on specific facts and should be checked carefully for cross-border estates.

Writer

Gary Buswell

Insider tip

People with stronger long-term ties to Japan, including some permanent residents or spouse visa holders, may have different inheritance tax treatment from recent arrivals on temporary work visas. The outcome depends on the specific facts of the estate.

How Japan calculates inheritance tax

Japan first deducts the basic exemption from the taxable estate. It then calculates the total inheritance tax by notionally dividing the remaining amount among the statutory heirs according to their statutory inheritance shares.

The tax calculated through this notional exercise is then allocated among the people who actually receive the estate, broadly according to the value each person inherits. This can make the calculation feel less intuitive than systems that simply apply a tax rate directly to each beneficiary’s actual share.

Basic exemption and inheritance tax rates

The current basic exemption is:

¥30 million plus ¥6 million for each statutory heir.

For example, where there are three statutory heirs, the basic exemption is ¥48 million. If the net taxable estate does not exceed the applicable basic exemption, an inheritance-tax return is generally not required.

The following rates are applied to each statutory heir’s notional share of the taxable estate after the basic exemption has been deducted.

You can check the current rates and exemptions on the NTA website (original text in Japanese).

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The tax system in Japan

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Credits and deductions expats should know

Japan offers several tax credits and reliefs, but they do not provide a blanket inheritance-tax exemption for foreign beneficiaries.

The best-known relief is the spouse’s tax reduction. Broadly, a surviving spouse does not pay inheritance tax on the amount inherited up to the higher practical limit created by:

• The spouse’s statutory inheritance share; or
• ¥160 million

For example, a spouse who actually inherits ¥120 million may have no inheritance tax to pay if the spouse’s tax reduction applies. An adult child inheriting the same amount would not qualify for that spouse-specific relief, so the final tax could be substantially different.

Depending on the circumstances, also check whether:

• the spouse’s tax reduction applies to the spouse’s actual inherited share;
• a minor’s tax credit applies to a qualifying statutory heir under 18;
• a tax credit for a person with a disability applies;
• foreign inheritance or estate taxes qualify for a foreign tax credit in Japan;
• another country may also tax the inheritance;
• Japan’s 20% tax surcharge applies to a beneficiary who is not the deceased’s spouse, parent or child, subject to limited exceptions.

Filing deadlines, documents, and how to pay

Even readers who broadly understand liability often get stuck on timing, paperwork, and payment logistics, especially if they live overseas. Here’s an overview of what to know about Japanese inheritance tax administration.

What heirs usually need to prepare

1. The 10-month deadline: Inheritance tax returns and payment are generally due within 10 months from the day of the notification of death.
2. A full asset inventory: You usually need a list of Japanese and, where relevant, overseas assets, debts, and funeral costs.
3. Valuation support: Property, private shares, or unusual assets may need professional valuation help.
4. Heir identification documents: Expect to gather identity records, family relationship evidence, and cross-border supporting paperwork.
5. Local filing support: A tax adviser may also ask for information connected to My Number or other local filings, but the exact document pack varies by case.

Writer

Gary Buswell

Insider tip

Overseas heirs often lose time waiting for translations, family registry records, or confirmations from multiple countries, so the safest move is to start gathering necessary documents immediately.

How payment works if you live outside Japan

Many readers assume there is one standard payment method, but this is often not the case. Payment options are set by the NTA, but the most practical method can depend on whether you live overseas, have a Japanese bank account, or appoint a tax representative.

That can be problematic if you live abroad and the process runs through major Japanese banks. A service like Wise may help once funds are released and you need to move or convert money. For larger transfers, Wise’s Type 1 Fund Transfer Service license allows you to send money without the 1 million JPY per transaction limit (internal limits apply).

However, you must first check which payment methods are available in your circumstances and whether your chosen method requires a Japanese bank account or tax representative.

Exact requirements vary case by case.

• Confirm accepted payment methods with the local tax office handling the return
• Ask whether you need a tax representative in Japan
• Confirm how payment responsibilities will be coordinated among the heirs
• Verify what documents are needed before moving large sums across borders

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How to file your income tax in Japan

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Common expat scenarios to check before you act

Readers often understand the rules better when it is applied to real situations, such as a non-resident inheriting Japanese property or a long-term foreign resident inheriting from abroad. These examples are practical guides, not personal tax outcomes.

Inheritance tax in Japan for non-resident foreigners inheriting property

Living abroad does not necessarily remove Japanese tax exposure if you inherit a home, apartment, land, or another local asset. The questions to check first are whether the asset is treated as situated in Japan, how it will be valued, and who will handle filings on the ground.

It can also create a second layer of admin, because you might need local records, valuations, and help with Japanese payment steps. If the inheritance includes real estate, you will also need to be mindful of Japanese property tax obligations.

Long-term foreign residents inheriting assets from abroad

If you have significant residence ties to Japan, the risk is that overseas assets could also need review under Japanese inheritance tax residency rules. This is where many expats get caught out, because they assume foreign nationality alone keeps overseas property outside Japanese scope.

Foreign tax credits, and in limited cases an inheritance or estate tax treaty, may help reduce double taxation.

You will need to consider:

• How long you and the deceased were connected to Japan
• Your residence and domicile status under Japanese inheritance tax rules
• Whether another country also taxes the same inheritance

Moving inherited money without a local bank account

This section focuses on the practicalities of receiving and transferring inherited money, not on determining your inheritance tax liability. If the estate can distribute funds to you but you would rather not rely entirely on a Japanese bank account, the practical questions become how to receive, convert, and transfer the money.

It is advisable to:

• Ask how the estate will distribute funds to the beneficiaries
• Separate tax payment steps from transfer steps
• Compare account opening and verification requirements early
• Keep records showing the source of inherited funds

How Wise can help expats move or receive inherited money

Wise can help if you need to receive, convert and transfer money in multiple currencies for planned exchange transactions, or send inherited funds onward after the estate has made payment (subject to transaction limits).

Note that transfers from your Wise Balance in Japan are subject to a 1 million JPY per transaction limit. Wise Balance is intended for funds you plan to use for currency exchange, not for long-term storage of inheritance funds.

It can also be useful for those who do not yet have a Japanese bank account but need a cross-border money tool rather than a full local banking relationship.

Bear in mind that you will still need to check regional availability, supported currencies, large-transfer documents, and whether any part of the inheritance or tax process must pass through a Japan-based account or local representative first.

• Can the estate send money through the payment method you plan to use?
• Is JPY receipt or conversion available for your region and account type?
• What source-of-funds or inheritance papers will you need?
• Are you moving money pre-tax or after any outstanding bills are settled?

When to get professional help

If you are not sure whether your case is straightforward or involves cross-border tax issues, err on the side of caution. Japanese inheritance tax can turn on small factual differences, and mistakes can be expensive once the 10-month filing and payment deadline is running.

Speak to a qualified Japanese tax adviser – ideally a bilingual zeirishi (licensed tax accountant) or cross-border specialist – before filing or moving large sums. This is also a sensible move if you want to carry out inheritance or estate planning after retiring in Japan.

In general, consider professional help if:

• The estate spans more than one country
• The estate includes Japanese property or business assets
• You or the deceased have lived in Japan for an extended period or have a residence status that could affect the scope of Japanese inheritance tax
• Another country might also tax the inheritance or offer a foreign tax credit