Taxes and finances in Japan: Guide for expats | KOCH Umzugslogistik
Moving to Japan is an exciting adventure that brings with it many new challenges. One key aspect that expats need to consider is taxes and finances in Japan. This article provides comprehensive information about the Japanese tax system, the best banks and tips for international money transfers.
Tax system in Japan: What expats should know about income tax and VAT
The tax system in Japan is a complex issue for many expats. Income tax in Japan is progressive and ranges between 5% and 45% depending on income. For foreigners who stay in Japan for less than five years, only the income earned in Japan is taxed. Value added tax, also known as consumption tax, is currently 10%. It is important to familiarize yourself with the tax deadlines and requirements to avoid possible penalties.
Opening a bank account: How to open an account as a foreigner and what to consider
Opening a bank account in Japan is an essential step in gaining a foothold in the Japanese economy. The best banks in Japan for foreigners include Mitsubishi UFJ Financial Group, Sumitomo Mitsui Banking Corporation and Mizuho Bank. To open an account, you will need your passport, residence card and proof of address in Japan. It is advisable to choose an account that offers online banking and English-speaking customer service.
Money transfers: Tips for international money transfers between Japan and Germany
International money transfers can be complex and expensive. For expats who need to regularly transfer money between Japan and Germany, there are a few ways to minimize the costs. Services such as Wise (formerly TransferWise), PayPal and Western Union offer cheap and fast transfers. Using online platforms to compare exchange rates can also help you find the best option.
Cost of living and budget planning in Japan
Another crucial aspect for expats moving to Japan is the cost of living. Japan, especially cities like Tokyo and Osaka, is one of the most expensive places in the world. Rents can vary considerably; in Tokyo, a one-bedroom apartment in the city center costs around 100,000 to 150,000 yen per month. Food and transportation can also be expensive. It is therefore important to draw up a detailed budget that takes into account all essential expenses. Use local markets and discount stores to cut costs, and consider buying a prepaid public transportation card to get discounts.
Retirement provision and pension system in Japan
Planning for retirement is another important aspect for expats working in Japan. Japan has a state pension system to which both employees and employers contribute. As a foreigner, you are required to register with the pension system if you work in Japan for more than one year. It is important to find out about the amount of contributions and potential pension benefits at an early stage. In addition, it may be wise to consider private pension insurance or savings plans to ensure financial security in old age. A consultation with a financial advisor can help to develop a tailored retirement savings strategy that meets your individual needs.
Moving to Japan requires careful planning, especially when it comes to taxes and finances. By educating yourself about the tax system, the best banks and money transfer options, you will be well equipped to make the transition as smooth as possible. Working in Japan can be an enriching experience, and with the right preparation you will be able to settle into the new environment quickly.
Our Japan removal service includes the following services:
- Export packaging of furniture
- Packing work complete
- Provision of packaging for overseas shipments
- Furniture dismantling
- Creation of a loading list with a number for each item
- Complete customs clearance export
- Container loading at your premises or pre-collection to our warehouse - depending on the situation
- Transportation from home/warehouse to port
- Sea freight from port to port
- Complete customs clearance import
- Transportation from port to home
- Unpacking the furniture
- Furniture assembly
- Disposal of packaging materials on the day of unloading
- Unpacking of the boxes on request - will be charged separately according to expenditure
- Terminal handling fees at the destination
- Return of the empty container to the port/terminal
You can book one of our all-round carefree packages for a stress-free move or take advantage of individual removal services. In addition to the removal services already mentioned, we also offer special services and additional services for removals of all kinds. Just ask us and together we will quickly find the optimal solution for any removal challenge, no matter how big or small. Send us an inquiry and we will prepare an individual offer for you.
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