If you are a foreign national living in Japan and you inherit assets from a parent who lived in your home country, how far does Japanese inheritance tax reach?

The answer is in this chart

Source: National Tax Agency, Tax Answer No. 4138 相続人が外国に居住しているとき (Japanese only)

How to read the chart

The rows describe the decedent (your late parent); the columns describe the heir (you). Find the one cell where your situation sits, and the scope of taxation is determined.

Shaded cells — Unlimited Taxpayer. Both assets in Japan and overseas assets are subject to Japanese inheritance tax.

White cells — Limited Taxpayer. Only assets in Japan are taxable.

A parent who has never lived in Japan falls in the bottom row: "No domicile in Japan within past 10 years (Non-resident Decedent)."

You live in Japan, so you fall on the left-hand side: "Domicile in Japan." That side splits into two columns, depending on whether you are a Temporary Resident. If you are not, overseas assets are added to the Japanese tax base on top of assets in Japan.

Where a parent leaves substantial assets in the home country, this single column makes a large difference to the taxable estate.

1. What is a Temporary Resident? (the "10-year rule")

There are two conditions for Temporary Resident (Note 1) status, and both must be met:

1. Holding a residence status under the upper column of Appendix Table 1 of the Immigration Control and Refugee Recognition Act at the time the inheritance commences
2. Having a total period of domicile in Japan of 10 years or less within the preceding 15 years

Note that a temporary absence from Japan — studying abroad, an overseas business trip — does not interrupt your domicile in Japan (Note 4).

The chart also refers to two further categories. Both describe the decedent.

There are two conditions for Foreign National Decedent (Note 2) status, and both must be met:

1. Holding a residence status at the time the inheritance commences
2. Having a domicile in Japan at the time the inheritance commences

A Non-resident Decedent (Note 3) is a decedent who had no domicile in Japan at the time the inheritance commenced and who meets either of the following:

1. Having had a domicile in Japan at some point within the preceding 10 years, but not holding Japanese nationality at any such time
2. Having had no domicile in Japan at any point within the preceding 10 years

A parent who has never lived in Japan falls under condition 2 and is a Non-resident Decedent.

2. Residence statuses under Appendix Table 1

The first condition for Temporary Resident status is holding a residence status listed in the upper column of Appendix Table 1. The Immigration Act divides residence statuses into two appendix tables, and that division governs the outcome. The full official list is published by the Immigration Services Agency as 在留資格一覧表 (List of Statuses of Residence — Japanese only).

Appendix Table 1 — can qualify as a Temporary Resident

Appendix Table 2 — cannot qualify as a Temporary Resident

Permanent Resident, Spouse or Child of Japanese National, Spouse or Child of Permanent Resident, Long-Term Resident

If you hold a status under Appendix Table 2, you are not a Temporary Resident no matter how long or short your stay in Japan has been.

3. The basic exemption

Once the scope of taxation is settled, the next step is the basic exclusion. Inheritance tax arises where the total taxable value exceeds the basic exclusion.

Basic exemption = ¥30,000,000 + ¥6,000,000 × number of statutory heirs

With three statutory heirs, for example, the exclusion is ¥30,000,000 + ¥18,000,000 = ¥48,000,000. If the total taxable value is at or below that figure, no inheritance tax arises and, as a rule, no return is required.

4. Cases

Common facts

A foreign national living in Tokyo loses their father, who lived in their home country. The father had no domicile in Japan at any point within the preceding 10 years (Non-resident Decedent).

Case 1 — At the time of the inheritance, the heir holds Engineer/Specialist in Humanities/International Services status, after 6 years in Japan

• Residence status falls under Appendix Table 1 (Table 1-2)
• Cumulative domicile within the past 15 years is 6 years, which is 10 years or less
• → Temporary Resident (Resident Limited Taxpayer)

What is taxable is only the part of what you inherit that is located in Japan. If you inherit the family home or the deposits in your home country, none of that falls within the scope. Even if you inherit the whole ¥5,000,000 Japanese deposit, that is below the basic exclusion (¥30,000,000 + ¥6,000,000 × number of statutory heirs), so no inheritance tax normally arises and no return is required.

Case 2 — At the time of the inheritance, the heir holds Permanent Resident status

• Residence status falls under Appendix Table 2, not Table 1
• The first condition is not met, so the 10-year test is never reached
• → Not a Temporary Resident (Resident Unlimited Taxpayer)

What is taxable is whatever portion of the ¥85,000,000 you inherit. Because it makes no difference whether an asset is in Japan or abroad, anything you inherit in your home country — the family home, the deposits — must also be valued, converted into yen, and reported and paid on in Japan.

5. Practical points

• Tax agent — Because the heir has a domicile in Japan, no nōzei kanrinin (tax agent) needs to be appointed or notified.
• Filing deadline — 10 months from the day after you become aware that the inheritance has commenced. Obtaining documents from overseas takes time, so an early start is necessary.
• Foreign tax credit — Where a tax equivalent to inheritance tax has been imposed abroad, a certain amount may be credited against the Japanese inheritance tax.
• Location of assets — Real estate is determined by where it is located, bank deposits by the location of the office that accepted them, and shares by the location of the issuing company's head office.

---

The next article will work through more specific cases.

---

Based on laws and regulations in force as of April 1, 2026. Please consult a certified tax accountant (zeirishi) regarding your individual circumstances.

Sources: National Tax Agency, Tax Answer No. 4138 相続人が外国に居住しているとき; Immigration Services Agency of Japan, 在留資格一覧表 (List of Statuses of Residence). Both are published in Japanese only.