If you’re a foreigner in Japan transitioning from full-time employment to freelancing, you’ll need to navigate a series of administrative tasks, including visa requirements, tax filings, and social insurance enrollment. This guide provides a concise yet comprehensive overview to help you start your freelance journey successfully.
- Is it possible to work as a freelancer under a work visa in Japan?
- Engineering / Specialist in Humanities / International Services Visa
- Only Possible Through Domestic Change
- Financial Stability is Strictly Evaluated
- No Employment Does Not Mean No Sponsorship Requirement
- Reporting Changes in Contracting Parties
- If Your Business Grows, You May Be Directed to Switch to a Business Manager Visa
- Tax Procedures: Filing Your Business Registration (開業届)
- Social Insurance: National Pension (国民年金) and Health Insurance
- Key Points to Keep in Mind
Is it possible to work as a freelancer under a work visa in Japan?
Yes, it is possible. In fact, there are many freelancers in Tokyo who earn enough to support their living under a work visa. However, it’s important to understand that what is allowed is freelance-like activities under a work visa, not running a full-fledged business.
If you want to run a small business, the Immigration Bureau’s stance is clear: get a Business Manager Visa. This visa requires a capital of at least 5 million JPY and an office space, signaling that if you want to go beyond freelancing, you’ll need to commit seriously and contribute to the country through taxes.
Engineering / Specialist in Humanities / International Services Visa
This visa is intended for a wide range of white-collar and office jobs. Many English-speaking professionals fall under the “International Services” category.
To work as a freelancer under this visa type, your activities must fall within the scope of work and job categories permitted by the visa. Ideally, the work should be the same or very similar to what you have been doing previously, as this makes the application process smoother.
Only Possible Through Domestic Change
You cannot apply for and obtain a work visa directly as a freelancer from overseas. Typically, you would need to switch your employment status under the same visa, or switch from another visa to a work visa to start freelancing. Alternatively, if you were previously working under an employment contract but now want to work freelance in the same field, it might be possible.
Financial Stability is Strictly Evaluated
- The Immigration Bureau requires proof of stable income to approve a work visa.
- Contracts with clients are mandatory in place of employment contracts.
- You must have long-term contracts (over 6 months) with your clients, such as consignment or outsourcing agreements.
- As a general rule, earning less than 200,000 JPY per month will make approval difficult. It is acceptable to combine multiple contracts to reach this amount.
In short, a digital nomad lifestyle with uncertain income is not what the Immigration Bureau has in mind.
No Employment Does Not Mean No Sponsorship Requirement
- The application form for visa change or renewal has sections about sponsors that cannot be skipped.
- At least one of your clients must cooperate as a sponsor for your visa application.
- Relying solely on individual clients makes the process significantly more challenging.
Reporting Changes in Contracting Parties
- If a contract ends or you enter into a new contract, you must report this to the Immigration Bureau.
- Reports can be submitted at the immigration office, by mail, or online (though online submission is a bit complex).
Relevant Links:
If Your Business Grows, You May Be Directed to Switch to a Business Manager Visa
The Immigration Bureau has not officially disclosed the threshold for when freelancers must switch to a Business Manager Visa. However, considering the average annual salary of Japanese workers is 4.6 million JPY (2023), it is reasonable to assume that income up to this level (after expenses) is permissible.
Tax Procedures: Filing Your Business Registration (開業届)
If you’re starting a freelance business in Japan, you must submit a Business Registration (開業届) to your local tax office within one month. Registering your business enables you to choose Blue Tax Filing (青色申告), which offers significant tax benefits.
- White Tax Filing: Simple but with limited deductions.
- Blue Tax Filing: Requires detailed bookkeeping but offers deductions of up to ¥650,000.
Social Insurance: National Pension (国民年金) and Health Insurance
- National Pension: Mandatory for freelancers, with a 2024 monthly premium of ¥16,980.
- Health Insurance: Options include National Health Insurance (国民健康保険) or continuing company insurance for up to two years.
- Premiums: Based on your previous year’s income.
Key Points to Keep in Mind
Freelancing in Japan requires careful management of your visa status, taxes, and social insurance. Early preparation and professional advice can help you avoid pitfalls and ensure a smooth transition.
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