Financial planning for Americans living, working or retiring in Japan.

Some people come for a Tokyo tech or finance career — Roppongi, Minato, Shibuya. Others fall for a quieter life: a machiya in Kyoto, a slower pace in Fukuoka, a long-held plan to finally learn the language properly. Either way the life is the point, and the money side is what quietly undoes it: a five-year residence clock most people never hear about, NISA and iDeCo that don't protect you from US tax the way they protect everyone else, and an inheritance tax that can follow long-term residents home.

Cross-border financial planning and US investment management for Americans living abroad, typically with $1M+. Most clients have $1M+ in investable assets; we also work with selected households from $500K.

Written and reviewed by Anthony Walsh, Selanis. Last reviewed 2026-10-09.

Key issues

The 5-of-10-years non-permanent-resident clock
NISA and iDeCo still PFIC exposure for Americans
Japan's exit tax on large securities portfolios
401(k)/IRA drawdown under the US–Japan treaty
RSUs taxed on both sides
Inheritance tax reach on long-term residents

Your first five years in Japan are taxed differently — and most people don't know when the clock resets

Without Japanese nationality, you're generally a non-permanent resident for up to five years within a rolling ten-year look-back: foreign-source income is only taxed in Japan if it's remitted there. Cross that threshold and worldwide income is fully in scope, remitted or not. The timing of a large transfer — a house deposit, tuition, a US asset sale — can change which side of that line it falls on.

Japan's two best local savings accounts don't protect a US citizen the way they protect everyone else

NISA and iDeCo are genuinely good for Japanese tax residents. For a US taxpayer, neither account changes anything about PFIC law: most Japanese investment trusts and ETFs inside them are PFICs, and Form 8621 doesn't care that the gain was tax-free in Japan. Most brokers that offer NISA to US persons restrict you to individual Japanese stocks; iDeCo's fund menu usually has no non-PFIC option at all.

Leaving Japan with a large portfolio can trigger tax on gains you haven't sold

If you've lived in Japan more than five of the last ten years and hold ¥100 million or more in securities, unsettled margin positions or derivatives, departure can be treated as a deemed sale of those assets. Deferral is available, but only if a tax agent is appointed and security is posted before you leave — not after.

Your 401(k) and IRA keep working in Japan — the drawdown just needs structuring

The US–Japan treaty generally gives the residence country the first claim on pension income, with a credit for the other side's tax. In practice that means withdrawals are typically taxed in Japan once you're Japan tax resident, and the US still taxes the same distribution as a citizen. RMDs don't pause because you moved to Osaka. The sequencing of withdrawals against Japanese brackets is where most of the value is won or lost.

Tokyo tech and finance equity grants are a two-country sourcing problem

Japan generally taxes RSU vesting as employment income, sourced to the portion of the vesting period actually worked in Japan. Without a workday calendar and a properly claimed US foreign tax credit, the same vest can be taxed close to the combined marginal rate of both countries.

Japan's inheritance tax can reach worldwide assets based on residence history, not nationality

A long-term resident — by the decedent's or the heir's history — can pull worldwide assets, including US accounts and property, into Japanese inheritance tax. There's no US–Japan estate tax treaty to prevent the same wealth being taxed twice. Families who've been in Japan a decade or more need this mapped well before it matters.

An akiya in Kyoto or Fukuoka can be bought freely — the real cost is everything after the purchase

Japan places no nationality restriction on buying property. The planning gap is on the US side: a reportable foreign asset, US tax on rental income with its own depreciation rules, renovation and holding costs that often dwarf the headline akiya price, and resale liquidity in shrinking towns that can be very thin.

Frequently asked questions

What is a non-permanent resident for Japanese tax purposes?

An American without Japanese nationality who has had a Japanese address or residence for five years or less within the preceding ten years. Foreign-source income is only taxed in Japan if it's paid in Japan or remitted there; once the five years is exceeded, worldwide income is fully in scope.

Are NISA and iDeCo safe for Americans?

Japanese tax-free treatment doesn't change US tax law. Most Japanese investment trusts and ETFs inside either account are PFICs for a US taxpayer, requiring Form 8621. Many Americans use NISA narrowly for individual Japanese shares, if at all, and keep the core portfolio in US-domiciled funds elsewhere.

Does Japan have an exit tax?

Yes. Residents who've lived in Japan more than five of the preceding ten years and hold ¥100 million or more in securities, unsettled margin positions or derivatives can be taxed on the unrealised gain when they leave, as if the assets were sold. Deferral requires a tax agent and security arranged before departure.

Will my children owe Japanese inheritance tax on my US assets?

Potentially, depending on residence history rather than nationality. Long-term residents — by either the decedent's or the heir's history — can bring worldwide assets into Japan's inheritance tax net, and there's no US–Japan estate tax treaty to prevent double taxation against US estate tax.

How is my 401(k) or IRA taxed if I retire in Japan?

Generally taxed in Japan once you're Japan tax resident, with the US also taxing the same distribution as a citizen and a foreign tax credit used to avoid paying full tax twice. RMD rules continue regardless of where you live; the sequencing of withdrawals against Japanese brackets matters.

Do you file my taxes?

No. We coordinate a US CPA and a Japanese tax specialist around one strategy. Keeping advice separate from filing keeps everyone independent.

What does it cost?

A 45-minute Complimentary Fit Conversation at no charge. Planning engagements start at $3,000, with ongoing management on a tiered fee from 1.00% on the first $1M, falling to 0.30% above $10M. No commissions, no product revenue.

Fees

One Private Wealth Management relationship, with Blueprint ($3,000) and Life ($8,000) as planning entry points. Blueprint is complimentary at $1M+ managed by Selanis; Life at $2M+. Ongoing management uses a tiered, blended schedule starting at 1.00% on the first $1M and declining to 0.30% above $10M. Fee-only: no commissions, no product payments, no lock-in. All fees

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