Moving to Japan from the US: Tax Checklist for Americans

Moving to Japan is exciting, but the tax implications start before you leave. Japan's worldwide income taxation and complex social insurance system create unique pre-move planning needs. This checklist covers the key tax steps before, during, and after your move.

Before You Move (3-6 months before)

State Tax Exit

• If you live in California, New York, or another aggressive state, plan your exit carefully
• Surrender your driver's license and obtain a new one
• Cancel voter registration
• Sell or rent out property
• Close or minimize bank accounts in your former state
• Consider establishing residency in a no-tax state before moving abroad

FEIE Planning

• Understand the physical presence test (330 days outside the US in a 12-month period)
• Plan your move date to maximize your first-year FEIE
• Keep detailed travel records from day one

Visa Planning

• Research visa options: work visa, spouse visa, student visa
• Japan does not have a specific digital nomad visa (as of 2024)
• None determine your US tax treatment

Totalization Agreement

• The US-Japan totalization agreement prevents double social security taxation
• If you are self-employed, obtain a certificate of coverage

Banking

• Plan for Japanese bank account opening (requires residence card)
• Keep at least one US bank account open
• Understand FBAR reporting requirements

First Year Filing

Partial-Year FEIE

In your first year abroad, you may qualify for partial-year FEIE.

Japanese Tax Residency

You become a Japanese tax resident if you have a domicile (jusho) in Japan or have resided in Japan for 1 year or more.

FBAR

File FBAR for all foreign accounts, including Japanese accounts, if the aggregate value exceeds $10,000.

Establishing Japan Tax Residency

• Obtain residence card (zairyu card)
• Open a Japanese bank account
• Register with Japanese social security (if self-employed)
• Obtain health insurance (mandatory)

Common Pre-Move Mistakes

1. Not planning state tax exit — California and New York can follow you abroad for years.
2. Not tracking travel days — You need 330 days outside the US for the physical presence test.
3. Not reporting Japanese bank accounts and pension accounts on FBAR — All foreign accounts are reportable.
4. Not understanding Japanese pension US tax treatment — Complex and often misunderstood.
5. Not obtaining health insurance — Mandatory in Japan.

Timeline Checklist

3 months before:

• Research visa options
• Plan state tax exit strategy
• Set up travel tracking system
• Obtain certificate of coverage (if self-employed)

1 month before:

• Surrender state driver's license (if needed)
• Cancel state voter registration
• Document your move

First month in Japan:

• Obtain residence card
• Open Japanese bank account
• Register with social security (if self-employed)
• Obtain health insurance

First tax season:

• File US tax return with FEIE/FTC
• File FBAR (including pension accounts)
• File Japanese tax return (if resident)
• Make quarterly estimated tax payments (if self-employed)

When to Get Professional Help

You should consider professional help before you move, especially if you live in a high-tax state, have complex income, or are unsure about visa implications.

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FileAbroad explains U.S. federal tax and U.S. international information-reporting consequences of documented foreign facts. It does not provide foreign-country legal or tax representation, valuation opinions, banking or remittance advice, or advice on what a foreign authority will accept.

Scope statement reviewed 2026-08-30 · FileAbroad product/content owner