Japan Tax Guide

Inheritance taxation on foreign expatriate employees

Creation date2017/06/20 Last updated2022/07/19


Question: Does a foreign expatriate employee living temporarily in Japan have an obligation to pay inheritance tax? 

Answer: As a result of 2017 Japan tax reform, in the case of foreign employees temporarily living in Japan for intercompany transfer etc., inheritance tax is imposed only on Japanese domestic properties, regardless of whether the foreign expatriate employee is a decedent or an heir.

In this case, “foreign employees temporarily living in Japan” are those other than a permanent resident of Japan or a spouse of Japanese National etc. and have domestic address less than 10 years within the past 15 years. Most of the foreign resident with a working visa are applicable to this status.

For more details, please contact TOMA Consultants group.


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Answer: 2017年度税制改正により、企業内転勤などにより日本に一時的に在留している外国人については、その外国人が被相続人又は相続人のいずれの立場になる場合においても、日本国内財産のみ相続税が課税され、日本国外の財産については課税対象となりません。