Economy Japan to tap into digital nomads

According to estimates by Nomadlist.com, there are around 35 million digital nomads worldwide, most of whom come from North America and Europe. The only Asian countries on the list of 30 nations are India, Japan, and South Korea — in that order. Some countries, such as Argentina, Costa Rica, Mexico, the Philippines and Hungary, have special visas for digital nomads, but Japan does not. Instead, digital nomads can use other options, such as the working holiday visa and the tourist visa, to work remotely in Japan. Tokyo is the most popular destination for remote workers, according to Nomadlist.com. The increase in popularity happened when Japan started to welcome foreign visitors again last year.

The government is drafting measures to offer a digital nomad visa to tap into the growing market, which could be available as early as April next year, according to the Immigration Services Agency (ISA) — one of nine ministries and agencies tasked with the work. This is one of the policies that Prime Minister Fumio Kishida's administration revealed in May, aimed at boosting inbound tourism in the post-COVID era. The plan involves the possible expansion of an existing category or the creation of a new system, including visa and residential status for digital nomads, by the end of this fiscal year through March. The government is researching similar visas offered by other countries and working on features like how taxes will be determined and whether the visa-holders would be covered under the nation's health care program.

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The ISA is aware that digital nomads might already be working in Japan on tourism or other visas. Still, a digital nomad visa would allow them to stay for six months or a year; a government official said anonymously because details are still in the works.



Meanwhile, Mitsubishi Fudosan plans to operate 10,000 rental homes by 2030 for foreigners who plan to stay in Japan from one month to one year, appealing especially to digital nomads. The real estate company recently signed a licensing agreement with U.S. peer Blueground Holdings, which specialises in such housing. It operates 15,000 rental homes on a sub-lease basis for expatriates and others in 32 cities worldwide, with 10,000 people using its facilities annually. This is the first time the service will be offered in Japan.

In Japan, the service will operated by a wholly owned subsidiary of Mitsubishi Estate. Rental properties mainly in the Tokyo metropolitan area will be sublet and furnished with beds and furniture for foreigners. The properties will be offered online in English through the Blueground reservation system. The company's app also provides lifestyle counseling for those staying in the area. At first, properties will be available in central Tokyo areas such as Shibuya and Shinjuku, which are well known to foreigners. Rent is expected to be mainly in the range of JPY 300,000 to 500,000 yen (roughly USD 2,100-$3,500) per month.

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Paywall alert:

Do you know if there are any obstacles to using digital nomad income as support for a marriage visa?

By the way, how is digital nomad being defined? Are they independent contractors? If somebody has been an employee of a company for many years, transitions from an office position to an online position within the company and moves overseas, would they be considered a digital nomad?

Vincent3 said:

Do you know if there are any obstacles to using digital nomad income as support for a marriage visa?

By the way, how is digital nomad being defined? Are they independent contractors? If somebody has been an employee of a company for many years, transitions from an office position to an online position within the company and moves overseas, would they be considered a digital nomad?

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Both would be digital nomads as it's generally used in normal life. But as for Japan law, it sounds like they are still working it out.

Do you need income in support of a marriage visa? I thought if you married a Japanese national it doesn't matter if you have any income or not. But you may need a Letter of Guarantee from your fiance or father-in-law or whoever.

According to the Immigration Services Agency, Japan is introducing a new visa status to facilitate the residency of IT engineers and other foreign workers. It aims to provide extended stay options for individuals, often called digital nomads, allowing them to work remotely while staying in Japan. Digital nomads, such as IT engineers, consultants, and business executives, utilise digital technology to conduct their work globally. Under the current system, digital nomads can enter Japan on a tourist visa, permitting a stay of up to 90 days. However, a new visa status system has been proposed due to the growing demand for extended stays in Japan while engaging in remote work.

Under this fresh system, foreigners who meet specific requirements will be eligible to stay in Japan for six months. These requirements include maintaining an annual income of at least 10 million JPY and fulfilling conditions relevant to specified activities. Furthermore, the system allows family members to accompany the primary visa holder, with the aspiration that foreign individuals possessing valuable expertise will choose to reside in Japan, ultimately contributing to the local economy.


Foreign individuals meeting these criteria are granted residence status for "Designated activities" and a six-month stay in Japan. This system is also applicable to independent entrepreneurs conducting business abroad. Additionally, they can bring family members with private medical insurance coverage. This initiative is expected to provide digital nomads and remote workers from other countries with opportunities to extend their stay and work in Japan, ultimately contributing to the domestic Japanese economy. Implementing this new residency system aligns with Japan's broader efforts to attract international remote workers and play a role in economic and technological development. Digital nomads represent a global trend; several other countries have introduced similar systems to accommodate them. As part of the specific timeline for this initiative, public comments will be accepted starting in March, and the scheme's implementation is anticipated to commence next month.


Paywall alert:

As global competition to attract "digital nomads" heats up, local governments across Japan are stepping up efforts to bring these remote workers to areas outside the usual urban hubs.

In 2023, Japan recorded 163.6 million overnight stays by foreign visitors, a 38.9% increase from the previous year. However, nearly 70% of those stays were concentrated in the major metropolitan areas of Tokyo, Osaka, and Nagoya. In contrast, visitors to more rural regions stayed an average of just 1.36 nights per person. To help spread the economic benefits more evenly, regional communities are now looking to attract high-earning, mobile professionals who tend to stay longer and spend more. A recent global estimate puts the digital nomads at over 35 million, representing a combined market value of $787 billion. The Japanese government introduced a new visa category to support this effort in April 2024. It allows eligible digital nomads—those earning at least 10 million yen (roughly $70,200) annually and enrolled in private health insurance—to stay in Japan for up to six months. In addition to national policy, individual towns and cities are launching their own initiatives to appeal to this growing group of global workers.

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Cities vying for digital nomads include Fukuoka, Hyuga, Beppu, Shimoda, and Shimonoseki.

Paywall alert:

thomas said:

As global competition to attract "digital nomads" heats up, local governments across Japan are stepping up efforts to bring these remote workers to areas outside the usual urban hubs.



Cities vying for digital nomads include Fukuoka, Hyuga, Beppu, Shimoda, and Shimonoseki.

Paywall alert:

Japan's smaller cities lure digital nomads with surfing and sushi

Co-living programs and tours aim to catch eye of mobile high earners

asia.nikkei.com

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Digital nomads are more bad news than good news. They tend to be registered in their home country for tax, so they don't pay local or income tax to the country they're working in, despite relying on local services. Nor does their work benefit the country they are working from. Nor do they interact much with local people. They're essentially long-term tourists if you look at them from that viewpoint. They inevitably gravitate towards the most popular places, increasing pressure on accommodation and raising rental prices. Far better to allow immigrants to come in to do jobs that Japanese people don't want to do, or there aren't enough Japanese people to do, and give them a chance to settle.