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Japan Plans Tougher Permanent Residency Rules With Higher Income and Pension Tests From October

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Japan Tightens Permanent Residency Rules From October 1, 2026

Until now, many foreign residents of Japan could win permanent residency on an annual income of around 3 million yen. Under a draft revision unveiled by the Immigration Services Agency on August 5, that bar roughly doubles.

Applicants would have to show household income that has stayed above the Japanese average, adjusted for household size. The agency says it will check that the level held through the whole five-year review period, not just on the day of application. The 5.75 million yen figure circulating in coverage is not a fixed line, officials said, because they will look at several government surveys.

The rules are due to take effect in phases from October 1, 2026. The income test would reach back to applications filed as early as April 2026. The agency opened the draft to a month of public comment on August 4 and expects to finalize it around October 1.

Pension and language tests

Two further hurdles are new. For the first time, applicants must show that their expected pension benefits match what 30 years in the employees’ pension system would pay, while earning above the benchmark for their household. Financial assets can cover a shortfall, which matters for people who arrived in Japan later in life. Real estate and other property will not count, because the agency said it could not value them consistently over time.

On language, applicants will generally need ability equivalent to CEFR B1, or JLPT N2. The agency will also weigh an applicant’s grasp of Japanese law, taxes and social security, and whether school-age children are attending school. Under the revised guidelines it is no longer enough that residency merely not conflict with Japan’s interests. It must “affirmatively and concretely benefit Japan.”

The shortcut for spouses of Japanese citizens and permanent residents, who normally avoid the general 10-year residence requirement, is also being tightened. Fees jump twentyfold from October, from 10,000 yen to 200,000 yen. Justice Minister Hiroshi Hiraguchi said the fee is charged only on approval, so applicants caught by the retroactive rules need no compensation.

Why the government says it is needed

Hiraguchi told reporters the changes were needed so permanent residents do not become a public burden. The agency pointed to cases of residents who could not manage at municipal counters or follow tax notices because of limited Japanese, which contributed to unpaid public charges. It was following a January 2026 government policy on integrating foreigners that called for a review. Kentaro Ando, an agency official, put the principle this way: “A person granted permanent residency status is expected to make Japan the base of his or her life for the remainder of that life.”

Critics push back

Legal experts and advocates have been sharp. Shoichi Ibusuki, co-representative of a network seeking reform of the agency, called the policy “profoundly xenophobic.” Lawyer Chie Komai, who co-leads the network, warned that people “who love Japan and were prepared to settle here and contribute to Japanese society will leave.” Some lawyers have called the changes foolish, given Japan’s aging population and low birthrate.

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