Government Incentives

The Japanese government has come together to implement not only financial measures, such as English-language support for financial administration, but also taxation and residency status measures to establish Japan's position as an international financial center open to the world. As Prime Minister Kishida stated during his speech in London in May 2022, Japan will continue to aim to become an international financial center that attracts human resources, firms, and funds. An excerpt of Prime Minister Kishida’s speech follows below.


Image source: Prime Minister's Office of Japan Homepage (
The image has been cropped.

The single message I wish to convey to you is this:
The Japanese economy will continue to see robust growth. You can invest in Japan with confidence. Invest in Kishida. Of course, Japan does face many challenges. But I am prepared to lead reform efforts to tackle these challenges head-on.

Financial Market Entry Office

The Financial Market Entry Office was opened in January 2021 to provide one-stop, all-English support to those looking to set up an office of business in Japan. This office handles everything from preliminary consultation to registering the firm’s business and supervising ongoing operations, all of which is done entirely in English.

Please refer to the Financial Market Entry Office for details.

At present, the following licenses are able to be processed in English.


  • Investment Management Business (Article 28, paragraph (4) of the Financial Instruments and Exchange Act, hereinafter “FIEA”)
  • Investment Advisory and Agency Business (Article 28, paragraph (3) of FIEA)
  • Type II Financial Instruments Business relevant to Asset Management Business in any of the following cases.
    1. where selling a beneficial certificate of an investment trust or a fund established by itself (Article 28, paragraph (2), item (i) of FIEA)
    2. where selling a partnership-type fund (collective investment scheme interests) managed by a group company of the applicant to Professional Investors (Article 28, paragraph (2), item (ii) of FIEA)
    3. where conducting business deemed to be Type II Financial Instruments Business operated by an Asset Management Company of an Investment Corporation or an operator of an Investment Management Business for Qualified Investors (Article 196, paragraph (2) of the Act on Investment Trusts and Investment Corporations; and Article 29-5, paragraph (2) of FIEA)
  • Type I Financial Instruments Business that deals only in certain securities, such as foreign investment securities with Professional Investors


  • Entry scheme for GP managers with overseas qualified clients (non-Japanese corporations and individuals domiciled abroad with a certain amount of assets; Article 63-9 of FIEA)
  • Pre-registration entry scheme for those (managing only offshore funds) with authorization granted by regulatory bodies and having a proven track record in specified foreign jurisdictions; Article 3-3 of the Supplementary Provisions of FIEA)

Financial Start-Up Support Program

The Program provides financial support of up to 20,000,000 yen (70% of total approved invoices) to cover the costs of establishing a business in Japan for asset management business operators and/or financial professionals coming to Japan and setting up a new office.

Please refer to the Financial Start-Up Support Program for details.

*The implementation period of the Program ends on March 31, 2024.

Tax Incentive Initiatives

Initiatives were undertaken for inheritance tax, income tax, and corporate tax.

Current Status

Corporate tax


For asset management firms

Inheritance tax


For foreign national heirs residing in Japan

Income tax


For fund managers (individuals)


Performance-based compensation of directors
Listed companies: deductible
Private companies: not deductible


Living in Japan over 10 years: tax on worldwide assets
Living in Japan less than 10 years: tax on assets only in Japan


Carried interest - distribution of allocated returns in excess of capital contribution ratio

Unclear if it is a capital gain or not


November 22, 2021

April 1, 2021

April 1, 2021

An unlisted, non-family company (including a 100 percent-owned subsidiary of a listed company) that mainly conducts Asset Management Business may deduct its performance-based compensation depending on such conditions as if calculation methods are described in the filed business reports and publicly disclosed through the FSA website.

Assets held outside of Japan by a foreign national who entered Japan with a valid working visa will be exempt from Japanese inheritance tax regardless of their years of residence in Japan when the heir receives the assets as a non-resident.

When a profit distribution of a carried interest has an economic rationality, that profit should be taxed as a capital gains tax (20%).

Expansion of preferential immigration treatment in the point-based system

In terms of statuses of residence, not only has it become easier to obtain a “Highly Skilled Professional” status of residence, but preferential treatment measures are also being expanded.

In the "Comprehensive Economic Measures to Secure People’s Lives and Livelihoods toward Relief and Hope" passed by the Cabinet on December 8, 2020, as part of the measures to create an environment where foreign businesspersons can conduct business in Japan with peace of mind, it was decided to take various steps to improve procedures with regard to residence statuses. In response, the following special measures became available for Highly Skilled Professionals (HSPs) in asset management businesses.

Note: Bullet points marked with ○ are preferential treatment measures for asset managers.

Highly Skilled Professionals (HSPs)

  • A new category (+ 10 points) for asset management business operators has been added to facilitate reaching the number of points required to obtain a "Highly Skilled Professional" status of residence, which entitles the holder to various preferential immigration treatment.
  • Preferential processing of entry and residence procedures for HSPs (processing period: around 10 days).

Domestic workers

  • HSPs in asset management businesses are allowed to:
    • Hire domestic workers even if their household does not meet the requirements, such as having a child under the age of 13;
    • Increase the maximum number of domestic workers they can hire from one to two if the household annual income exceeds 30 million yen or more.

A special measure for those with the "Temporary Visitor" status of residence

  • Foreign nationals who enter Japan with the "Temporary Visitor" status of residence to prepare for company setup can change their statuses of residence directly to "Highly Skilled Professional" or "Business Manager," etc., without returning to their home countries before commencing business, subject to certain conditions (*1).

    (*1) Registration as an Investment Management Business should be done while staying in Japan as a "Temporary Visitor.“


  • Spouses of HSPs can work full-time without obtaining working visas, subject to certain conditions (*2).
  • Preferential processing of entry and residence procedures for spouses of HSPs (processing period: around 10 days).

    (*2) Living with HSPs and engaging in activities that fall under categories of activities such as "Engineer/Specialist in Humanities/International Services" while earning at least an equivalent amount of income to Japanese people with similar jobs.