Leaving Japan Vol.1: Visa, Exit Taxes, Pension Refunds, and What to Do Before You Go
Life in a foreign country brings unexpected joy and personal growth — but also difficult decisions.
I’ve known friends who fly back and forth between the U.S. and Japan every month to care for aging parents, juggling two lives. But as our parents grow older, so do we — and those long-haul flights take a toll, not just on our wallets, but on our ability to handle jet lag and physical strain.
Or you just obtained a degree and decided to live elsewhere.
If you're preparing to leave Japan, for whatever reason, I hope this guide helps you wrap things up smoothly with less stress.
What This Blog Covers:
Vol.1
Visa Cancellation & Immigration Procedures
Job Resignation, Final Pay, and Employee Benefits
Taxes and Exit Obligations
Financial Accounts and Investments
Bank Accounts: Close or Keep?
For University Students
-> To be continued in Vol. 2
1. Visa Cancellation & Immigration Procedures
When leaving Japan permanently, you must return your Residence Card (在留カード) or Alien Registration Certificate (外国人登録証明書) to an immigration officer at the airport during departure procedures. Present your card together with your passport to the officer, who will collect it as part of the exit process.
If you forget to return it at the airport, you must mail it to the immigration office within 14 days of departure. On the envelope, write "在留カード等返納 (Return of Residence Card, etc.)" and use a trackable shipping method.
Failure to return your card may result in a fine of up to ¥200,000 and could lead to complications when re-entering Japan in the future.
If you're on a long-term visa (e.g., work, spouse, dependent), you do not need to visit the immigration office before departure unless you're changing your visa status. However, if you are giving up Permanent Residency or Special Permanent Residency (特別永住者証明書), it’s best to consult with immigration in advance.
2. Job Resignation, Final Pay, and Statutory Benefits
Before resigning, consider exploring internal opportunities in your home country — especially if you work for a global company.
HR or your manager may know of open or confidential roles, so don’t hesitate to ask. Be ready to articulate the value you can offer from abroad — such as cross-pollination between regions, strategic alignment, or better client access.
Once you’ve decided to resign, notify your manager and/or HR as early as possible. While Japanese labor law requires only two weeks’ notice, many companies expect a longer notice period, such as one month.
Here are the key items to review before you leave:
✅ Paid Time Off (PTO) and Final Working Day
Confirm how much unused PTO you have.
Some companies do not offer a PTO buyout, so you may need to use it before your last day.
Clarify your final working day and ensure it aligns with your planned departure date.
✅Welfare Pension Refund (Lump-Sum Withdrawal: 脱退一時金)
If you’re leaving Japan permanently, you may be eligible to claim a partial refund of your pension contributions through a lump-sum withdrawal. To qualify, you must meet all the following conditions:
You are not a Japanese citizen
You have contributed to the National Pension or Employees’ Pension for 6 months or more
You no longer have an address in Japan
You are not currently receiving a Japanese pension
You must apply within two years of leaving Japan.
🛑Note: Once you receive the refund, your pension record in Japan will be erased, meaning you will no longer be eligible for future pension benefits — even if you return to work in Japan. If you think you might come back, consider this carefully before applying.
The lump-sum withdrawal is taxed as retirement income for non-residents, and a 20.42% withholding tax will apply.
You can claim a lump-sum withdrawal for contributions made under:
National Pension Insurance (国民年金)
Employees' Pension Insurance (厚生年金)
Mutual Aid Association Pension Insurance (共済年金) — for certain public employees
Source: Japan Pension Service PDF – Application Instructions (Japanese)
✅ Long-Term Care Insurance (介護保険) for Those Over 40
There is no separate refund for long-term care insurance.
✅ Health Insurance
Your final health insurance premium will be deducted from your last paycheck. If you or your family members are still using your insurance card, make sure to return all cards immediately after your termination date.
⚠️ Health insurance coverage ends on your termination date, not your last working date, so plan your departure and medical visits accordingly.
✅ Retirement Allowance (退職金)
Depending on your company’s policy, you may be eligible for a retirement allowance.
Check the terms with HR.
✅ Stock Plan / Equity Compensation
If you’re enrolled in a stock plan or equity incentive program, ask HR or your plan administrator for details. You may need to transfer your shares to a personal account or take an action within a deadline.
✅ Incentive Plans / Deferred Compensation
If you’re eligible for bonuses or deferred incentives, check your plan rules.
In many cases, voluntary resignation leads to forfeiture, unless otherwise stated.
✅ Outstanding Business Expenses
Make sure to submit any expense reports before the final payroll cutoff date.
If that’s not possible, check whether your company allows post-termination reimbursement. Some companies will process it if submitted quickly, while others will not accept claims after termination.
✅ Employment Certificate (退職証明)
Request a Certificate of Employment for future job applications or visa purposes.
✅ Tax Documents
源泉徴収票 (Gensenchoshu-hyo): You’ll need your final withholding tax statement for both salary and any retirement allowance.
Make sure to receive it before you leave or confirm how it will be sent later.
Keep it as evidence for tax purposes
✅ Unemployment Insurance Document (離職票 / Rishokuhyo)
This document is important in case you need job verification for future employment. Typically, it takes 2 weeks to issue it after your termination date.
🛑Note: For Non-Employees — Withdrawal from National Pension & Health Insurance
If you are enrolled in the National Pension or National Health Insurance through your city office, you must formally withdraw from both systems by submitting the required forms to your local municipal office before leaving Japan.
3. Taxes and Exit Obligations
Even when leaving Japan, you are not exempt from final tax obligations. Here’s what to know:
✅ Exit Tax
If you hold more than ¥100 million in financial assets and meet other conditions, you may be subject to the Exit Tax. This applies to high-net-worth individuals, and while rare, it's worth checking with a tax professional.
✅ Resident Tax
Resident tax is charged based on your residency status as of January 1st and is typically withheld from your salary between June and the following May. What happens at departure depends on the time of year you leave:
If you leave between June and December:
Any unpaid resident tax for the current year should be withheld from your final salary or retirement allowance.
If full withholding isn’t possible, you must appoint a tax agent (納税管理人) before departure. Your city office will send the payment slips for the following year's resident tax (if applicable) to the tax agent.
🔸 Important: You will not be charged resident tax for the following year if you are no longer a resident of Japan as of January 1.
If you leave between January and May:
You will be required to pay the remaining resident tax in full from your final salary or retirement payment before departure.
✅ Income Tax, Tax adjustment and Tax Return
Foreign nationals employed by a company in Japan are subject to monthly income tax withholding from their salary. At the end of the year, the company typically conducts a year-end tax adjustment (年末調整) to reconcile taxes.
If you plan to leave Japan before the end of the year, you may receive a pre-departure year-end tax adjustment (出国時年末調整), but only if both of these conditions are met:
o Your total salary for that year is ¥20 million or less, and
o You’re leaving Japan with the intention of staying abroad for more than one year
This adjustment applies only to salary earned up to your termination date. Deductions for social insurance and life insurance premiums are limited to amounts paid before departure; however, you can still claim the full spousal and dependent deductions.
If you return to your home country and become a non-resident during the tax year, but still earn Japan-sourced income after returning (e.g., from rental property or investments), that income is taxable in Japan.
In such cases, even if your employer already completed your tax adjustment, you are required to file a final tax return (確定申告) in the following spring. To do this from abroad, you should appoint a tax agent (納税管理人) before departure.
Source: https://www.nta.go.jp/taxes/shiraberu/taxanswer/index2.htm
✅ Income Tax on Retirement Allowance (退職金)
Tax treatment for retirement allowance is based on your residency status at the time of retirement (i.e., your official retirement termination date) — not the payment date. This can significantly affect how the amount is taxed:
If you are still a resident on your termination date (even if you leave Japan the next day), you’re eligible for retirement income deductions and favorable tax treatment.
If you’ve already become a non-resident before your termination date (for example, by using up paid leave and officially retiring after leaving Japan), only the portion of the retirement allowance earned during your residency period is taxed as Japan-sourced income, and it is subject to 20.42% withholding tax.
In such cases, you can still file a tax return as a non-resident and elect to apply resident-level tax treatment under Article 173 of the Income Tax Act, potentially receiving a refund.
🛑 Tip: A difference of just a few days can lead to a significant tax and paperwork burden. Plan carefully around your final work and departure dates.
📘 Example: How Residency Affects Retirement Allowance Tax
You worked in Japan for 10 years and earned a full retirement allowance.
Before your official termination date, you used up your paid leave and left Japan. Since you were already abroad on your termination date, Japan treated you as a non-resident at retirement.
As a result, your company withheld 20.42% income tax on your retirement allowance — even though the typical rate for residents would be around 10% or less.
The good news?
You can still file a tax return from overseas and request resident-level tax treatment (under Article 173 of the Income Tax Act). This lets you apply the retirement income deduction, and in most cases, you may get a large portion of that tax refunded.
⚠️ Important:
Tax matters can be complicated. I highly recommend consulting a qualified tax service provider before finalizing your departure plans.
4. Financial Accounts & Investments
When leaving Japan, review your financial and investment accounts, as your residency status affects eligibility and access.
✅ iDeCo (Individual-type Defined Contribution Pension Plan)
Once you become a non-resident, you can no longer make new contributions to iDeCo.
However, you can usually keep your iDeCo account open, and the assets will remain invested until you reach retirement age (generally 60 or older).
🔸 Lump-Sum Withdrawal (脱退一時金)
A lump-sum withdrawal from iDeCo may be available from overseas under the following conditions:
· You are between ages 20 and 60, have already left Japan, and are no longer working in Japan.
· You are not eligible for disability benefits, and your iDeCo contribution history is 5 years or less, or your account balance is ¥250,000 or less.
· You must apply for the withdrawal within 2 years of losing eligibility (i.e., leaving Japan).
🛑Note: iDeCo is a system meant for long-term retirement saving. Unless you meet the small-balance criteria, early withdrawal is not permitted. Otherwise, you’ll need to wait until age 60 to access your funds.
Source: iDeCo Official Site
✅ NISA (Tax-Free Investment Accounts)
You can freely sell all holdings in your NISA account at any time, including both Growth(投資枠) and Accumulation（積立枠） categories.
If you want to close your NISA account entirely or transfer it to another financial institution, you’ll need to complete a separate account closure or transfer procedure, which is different from simply selling your assets.
These procedures vary by provider, so you should contact your financial institution directly.
🛑 Note: Once you become a non-resident, you cannot make new NISA contributions. However, depending on the institution, your existing holdings may remain in the account.
Source (Japanese): 金融庁 NISAガイド
Also review:
Other Japanese brokerage or investment accounts -> If you plan to continue investing in stocks after moving overseas, you’ll need a good understanding of international tax rules.
Outstanding loans (mortgage, auto, or personal)
International remittance rules and tax implications for large fund transfers
5. Bank Accounts: Close or Keep?
There are Japanese bank account you can keep after leaving — but there are a few things to watch out for:
Some banks (especially regional ones) may close your account if they learn you’re no longer a resident — for example, after you unregister at your city office. Check with your bank in advance.
Major Japanese Banks Offering Services for Non-Residents (as of July 23, 2025):
o MUFG Bank (Mitsubishi UFJ)
o SMBC (Sumitomo Mitsui Banking Corporation)
o PRESTIA (SMBC Trust Bank)
o Resona Bank
o Sony Bank
NOTE: Available services, procedures, and eligibility requirements vary by bank, so be sure to check the details directly with each institutions.
Make sure you can access online banking from abroad — or consider appointing a trusted person in Japan to help if needed.
Cancel any auto-withdrawals, subscriptions, or credit card payments linked to your account to avoid unexpected charges.
Know the remittance rules: There may be limits or fees when transferring large amounts of money overseas.
🛑Tip: Keep your account open for at least a year — you might still need it for things like a housing deposit refund or a moving company payment.
6. For University Students
If you’re finishing your studies and preparing to return to your home country, there are several important procedures you need to complete before leaving Japan.
The following list outlines key steps — be sure to plan and confirm everything in advance.
Universities in Japan are required to manage the enrollment status of international students responsibly. After graduation, completion, or withdrawal, the university must confirm that international students are returning to their home country.
✅ Key steps to take before leaving:
Notify the academic affairs office of your return date. You may be asked to present your flight ticket.
Follow your faculty or graduate school’s instructions and submit the “Pre-departure Notification Form” (離学前申告書) at least three weeks before leaving the university, as required under Japan’s export control regulations.
Return your student ID card to the academic affairs office of your department or graduate school.
🛑NOTE:
If you graduate, complete your program, or withdraw from university, you cannot remain in Japan even if your “Student” residence status is still valid. Staying in Japan under this status would be considered illegal.
If you wish to remain in Japan after graduation, you must apply to change your residence status from “Student” to another appropriate visa. If you plan to continue job hunting after graduation, and you have been doing so while enrolled, you may be eligible to apply for a Designated Activities visa to extend your stay for employment purposes.
To be continued in Vol. 2
Feeling overwhelmed? No wonder — it’s a lot!
If your company takes care of everything, lucky you. But if you’re flying solo like I did, I know exactly how stressful it can be. Jager (Chief Barketing Officer) and I are here for you.
Take a deep breath (seriously — you need this). One step at a time. You’ve got this!
Curious about Jager? Meet us here.