Permanent Residence Requirements for Large Investors in Japan: J-Skip and Current Regulations#

Japan does not currently offer a so-called “Golden Visa” program where Permanent Residence (PR) or citizenship can be directly acquired simply by purchasing real estate or government bonds of a certain value. The fundamental principle of the Japanese immigration system is that merely holding assets does not constitute grounds for residency status or permanent residence permission.

However, for foreign nationals who make substantial investments and manage large-scale businesses in Japan, significant preferential measures are in place to shorten the required residency period for Permanent Residence. In particular, the “System for Special Highly Skilled Professionals (J-Skip),” introduced in April 2023, serves as an extremely advantageous pathway for high-earning business managers.

This article provides an objective and detailed explanation of the current relaxation of Permanent Residence requirements available to business managers involving large-scale investments.

General Requirements for Permanent Residence and the Position of Investors#

First, let us review the standard guidelines for Permanent Residence in Japan. Generally, to acquire PR, an applicant must have “resided in Japan continuously for 10 years or more, of which 5 years or more must have been with a working visa.”

Investors and managers who enter Japan under the standard “Business Manager” visa are also subject to this principle. Simply establishing and running a company typically requires a 10-year track record of residency. However, if an applicant is recognized as making a significant contribution to Japan, this period can be shortened to “5 years,” “3 years,” or, in the shortest case, “1 year.” The primary routes for this acceleration are the “Highly Skilled Professional (HSP) Point-Based System” and the newly established “J-Skip.”

Relaxation via “J-Skip” (System for Special Highly Skilled Professionals)#

In April 2023, the Ministry of Justice implemented a new framework called “J-Skip” (System for Special Highly Skilled Professionals) to attract top-tier global talent. This effectively serves as the fastest route to Permanent Residence for managers who invest heavily and generate high returns.

Eligibility Requirements (For Business Management Activities)#

When investors or corporate managers utilize this system, academic background and point calculations are not required. Instead, they must simultaneously meet the following two strict criteria:

Have 5 years or more of practical experience in business management or administration.
Have an annual income of 30 million JPY or more.

“Annual income” here refers to the remuneration derived from the business within Japan. In other words, if an investor invests significant capital to establish a corporation in Japan and the business is successful enough to pay the manager a director’s remuneration of 30 million JPY or more, this requirement can be met.

Benefits Provided#

If certified as a “Special Highly Skilled Professional” under these criteria, the following preferential treatments apply:

Shortened PR Requirement: Permanent Residence application becomes possible after just 1 year of activity in Japan.
Accompanying Domestic Servants: Under certain conditions, up to two foreign domestic workers can be employed.
Spouse’s Employment: Spouses can engage in activities such as “Research,” “Education,” or “Engineer/Specialist in Humanities/International Services” even if they do not meet the standard academic or work experience requirements.
Priority Lanes: Use of priority lanes at immigration control in major airports is permitted.

This system is essentially designed to favor managers who make large-scale active investments that result in high personal income.

Relaxation via the Highly Skilled Professional (HSP) Point-Based System#

Even if an applicant does not meet the high income requirement of J-Skip (30 million JPY), it is still possible to shorten the period for Permanent Residence by using the existing “Highly Skilled Professional Point-Based System.”

This system assigns points based on academic background, professional history, annual income, age, and other factors. Preferential treatment is granted based on the total score:

Total of 70 points or more: The residency period required for PR application is shortened to 3 years.
Total of 80 points or more: The residency period required for PR application is shortened to 1 year.

For investors and managers, points are awarded for factors such as:

Annual Income: Higher income yields higher points (e.g., significant points are awarded for income over 10 million JPY, scaling up to maximum points at higher levels).
Position as Representative Director: Holding the status of a Business Manager allows for specific point evaluations.
Large-scale Investment (Exceptional Addition): In some cases, 5 points may be added if an investment of 100 million JPY or more is made in a business in Japan (subject to specific notification criteria).

Therefore, even without an annual income of 30 million JPY, a manager can achieve 80 points by combining a high educational background, career history, age, and a salary in the range of 10 to 20 million JPY, enabling a PR application after just one year.

Misconceptions Regarding Real Estate Investment and Permanent Residence#

It is crucial to clarify the relationship between “Real Estate Investment” and “Permanent Residence.” A common misunderstanding among wealthy overseas individuals is that “buying Japanese real estate guarantees a visa.” Currently, no such system exists in Japan.

Simply purchasing condominiums for rent or holiday homes does not grant a status of residence (visa). To acquire Permanent Residence or the prerequisite “Business Manager” visa through real estate, the investment must constitute a legitimate “business.”

It must be an active business with continuity, not merely passive asset holding.
A physical office space must be secured.
Hiring employees may be required depending on the scale.

When aiming for a visa or PR through real estate investment, the applicant is evaluated as a “manager of a real estate leasing business.” The focus of the immigration review is not solely on the purchase price of the property, but on the scale of the business, its continuity, and the recurring profit and director’s remuneration generated from it.

Conclusion#

The relaxation of Permanent Residence requirements in Japan for those making “large investments” is not triggered directly by the investment amount itself, but is evaluated through the “scale of the business” and the “manager’s annual income” that result from that investment.

Special Highly Skilled Professional (J-Skip): PR application is possible after 1 year of residency if the applicant has an annual income of 30 million JPY or more and 5+ years of experience.
Highly Skilled Professional Point-Based System: PR application is possible after 1 year of residency if the total points (based on income, background, etc.) are 80 or more.

These systems are designed to offer preferential treatment to managers who contribute significantly to the Japanese economy. By formulating an appropriate visa strategy linked to a solid investment plan, pathways are open to acquiring Japanese Permanent Residence at a speed that is competitive by global standards.