Japan to Significantly Raise Permanent Residency Threshold! Monthly Income Requirement Revealed: New System to Include Overseas Dependents and Pension Levels, Tax Evasion May Lead to Revocation

The Japanese government is considering revising the criteria for permanent residency approval, meaning that in the future, applicants' income will not be the only factor considered—spouse's income, overseas dependents, and post-retirement pension levels may also be reviewed. The widely circulated 'monthly income of 479,000 yen' is not currently an officially announced fixed threshold, but if the draft system is implemented, the difficulty of obtaining permanent residency will undoubtedly increase significantly.

To obtain 'permanent residency' (commonly known as 'permanent residence') in Japan, applicants may soon need to do more than just reside long-term and pay taxes on time—they must also demonstrate that their entire household possesses economic capability above Japan's average and will not become a burden on public finances after retirement.

The Immigration Services Agency is currently reviewing the 'Guidelines for Permanent Residency Permits,' aiming to transform the previously broad requirement of 'independent livelihood capability' into specific evaluation criteria such as income, household size, and pension levels.

At the same time, another system targeting those who have already obtained permanent residency is scheduled to take effect from April 2027. Those found to deliberately avoid paying taxes or social insurance premiums may, in serious cases, have their permanent residency status revoked.

In essence, the Japanese government is tightening two key aspects: 'how to obtain permanent residency' and 'how to maintain it after acquisition.'

The 'monthly income of 479,000 yen' is not a finalized hard threshold

According to reports from Asahi Shimbun and Kyodo News, the draft revision requires that the applicant's household income must, in principle, exceed the average income of Japanese households.

Japan's Ministry of Health, Labour and Welfare announced in July that the '2025 National Living Standard Survey' showed the average household income in Japan for 2024 was 5,752,000 yen, approximately 479,000 yen per month. This figure is the source of the media-reported claim that 'permanent residency applicants must earn at least 479,000 yen per month.'

However, there are at least two common misunderstandings about this figure.

First, 5,752,000 yen is the 'average household income,' not a required pre-tax annual salary for each applicant. Dividing this by 12 to get 479,000 yen per month is merely a simple conversion and is not an officially announced minimum monthly salary by the Immigration Services Agency.

Second, while the draft currently states that income must exceed the average household income level in Japan, the specific year of statistics to be used, how household size will be calculated, and the final threshold amount are all still pending official guideline publication.

As of July 28, the current version of the guidelines available on the Immigration Services Agency's official website still only requires that applicants 'not become a public burden' and 'can be expected to maintain a stable life in the future,' without a nationwide uniform income figure.

Notably, the median household income in Japan is only 4,510,000 yen, and 61.5% of households earn less than the average of 5,752,000 yen. If the 'average income' is directly used as the permanent residency threshold in the future, it would mean requiring foreign applicant households to have economic capability exceeding that of the majority of Japanese households.

Not only the applicant's income, but spouse's income can be combined

According to the draft revision obtained by Asahi Shimbun, permanent residency applications will be assessed on a household basis for income.

The applicant's income can be combined with the income of their spouse or other family members living in the same household. Therefore, even if the applicant's individual annual income does not meet the benchmark, they may still qualify if their spouse or other family members have stable income, allowing the total to meet the standard.

However, the draft also sets limitations. Income earned through part-time work by individuals holding residence statuses such as 'Dependent Stay,' which are not primarily for employment purposes—even if they have obtained permission for activities outside their status—may not be included in household income.

This means that future reviews will not only consider how much money the household actually earns but also how that income was earned and under which residence status.

Overseas parents may also be counted as dependents, threshold increases for households of 5 or more

Another significant change in the new system is that dependents who do not live with the applicant may still be counted in the household size.

The draft explicitly includes foreign-residing dependents in the calculation. This means that foreign workers in Japan who declare support for parents, siblings, or other relatives living in their home country may have these individuals counted in the economic capability assessment in the future.

When the calculated household size reaches five or more people, the Immigration Services Agency will further increase the required income standard by factoring in additional living expenses.

This rule particularly impacts foreign workers who frequently send remittances to support parents overseas and claim tax dependents for relatives abroad. However, the specific formula for how much income must increase per additional dependent has not yet been announced.

Pension must also meet the '30 years of Employees' Pension Insurance' standard

In addition to income, the applicant's retirement life capability will become an important factor in permanent residency review.

According to Kyodo News, the draft原则上 requires that the pension the applicant is expected to receive in the future must be equivalent to the level received after 30 years of contributing to Japan's Employees' Pension Insurance at a standard income level.

This does not necessarily mean that applicants must have already paid into the pension system for 30 years before applying for permanent residency, but rather that they must be able to demonstrate an expected pension income at a comparable level upon retirement.

If the projected pension is insufficient, the Immigration Services Agency may further verify whether the applicant has savings, stocks, or other financial assets to cover retirement living expenses. However, how financial assets will be converted into pension capability and for how long they must be maintained has not yet been finalized.

Permanent residency is not a permanent guarantee—deliberate tax evasion may lead to revocation

For those who have already obtained permanent residency, the Japanese government is developing another set of guidelines to determine revocation eligibility.

Japan amended the Immigration Control Act in 2024, adding provisions allowing the revocation of permanent residency status for individuals who deliberately fail to pay taxes or social insurance premiums. This system is scheduled to take effect from April 1, 2027.

According to the draft obtained by Sankei Shimbun, cases such as refusing to pay despite multiple collection notices and property seizures by local governments, being convicted of tax evasion, hiding assets, or obstructing tax collection may be considered specific examples for revocation.

However, tax arrears will not automatically lead to the cancellation of permanent residency status.

Official explanations from the Immigration Services Agency state that revocation decisions will still comprehensively consider the amount, duration, frequency of arrears, the applicant's attitude toward collection efforts, and whether the arrears have been resolved.

If the applicant demonstrates willingness to pay, continues to make installment payments as agreed, or has legally obtained a deferment permit, they will generally not be subject to revocation. Arrears due to uncontrollable factors such as illness, disasters, or involuntary unemployment will also be excluded.

Guidelines to be revised in October, possibly retroactively applied to applications from April

According to Asahi Shimbun, the new income standards are expected to be formally introduced after the guideline revision on October 1, 2026, but may be retroactively applied to permanent residency applications accepted after April 2026.

This means that some applicants who have already submitted their applications and prepared documents according to previous review practices may be required to submit additional proof of income, dependents, or pension projections.

However, there are still discrepancies in media reports regarding the implementation timeline. Some reports suggest income requirements will apply from October this year, while other pension and related conditions may be delayed until April 2027. Therefore, until the Immigration Services Agency officially publishes the final guidelines, the figures of 5,752,000 yen or 479,000 yen per month cannot be considered already established legal minimum thresholds.

The Japanese government has recently emphasized 'orderly coexistence,' and in addition to economic capability and tax records, is considering strengthening requirements such as Japanese language proficiency, understanding of Japanese systems and living rules, and children's school attendance. On July 24, a cabinet meeting on foreign policy was held, requesting the formulation of subsequent basic policies within the year.

For foreigners preparing to apply for permanent residency, Japan's permanent residency system is shifting from primarily confirming residence duration, employment stability, and tax records to comprehensively reviewing family burdens, retirement funding sources, and continued legal compliance after obtaining permanent residency. In the future, what may truly matter is the long-term ability to prove that oneself and one's entire family will not become a burden on Japan's social security system.