The number of people settling down for longer-term stays, including work and study, also hit an all-time high last year, likely due to the reliable safety and convenient infrastructure the world’s fourth-largest economy has to offer.
But recently, a series of tightened immigration policies imposed by the government has made those who’ve come to call Japan their second home wonder: Is it time to say “sayonara”?
Japan has a long history of strict immigration policies and a homogeneous population. However, gripped by a spiraling demographic crisis, the country gradually opened up to foreign workers as well as seeking more international tourists.
But such efforts did not wholly succeed.
Overtourism and reports — some true, others misconceived — of foreign residents flouting local rules have recently fueled the rise of “Japan-first” politics and reshaped the trajectory of what was becoming a more open, diverse and welcoming society.
Last month, the Japanese government, led by conservative Prime Minister Sanae Takaichi, said that a range of visa fees would rise in October — the latest in a series of stricter measures for foreigners.
Under the new rules, those looking to settle permanently in Japan will have to fork out 20 times more — 200,000 yen ($1,257) — to become a permanent resident.
Prices for other work and student visas will also rise.
The purpose of the spike in fees is to forge “an orderly society in which foreigners and Japanese citizens coexist,” said Justice Minister Hiroshi Hiraguchi.
That left some foreign residents in Japan worrying whether it’s the start of a trend of tougher policies for newcomers.
The people in the crosshairs
The most drastic shifts impact those who plan to stay in Japan for the longest – those applying for permanent residency, a status that grants rights to work, unlimited entries, and infinite stay.
Effective from October, applicants are required to have an income level higher than that of average Japanese households. And from next April, aspiring permanent residents need to have a projected pension fund equivalent to 30 years of payouts. They also have to speak intermediate-level Japanese.
“Considering that permanent resident is the most stable status of residence, this revision makes necessary updates to the application of independent livelihood and national interest requirements to ensure applicants do not become a public burden,” said Hiraguchi during a press conference last month.
Tourists walk along the street in Tokyo.Andrew Caballero-Reynolds/AFP/Getty Images
Earlier this year, the government also tightened rules for foreign business owners, raising the capital requirement of a business manager visa popular among entrepreneurs from five million yen ($31,000) to 30 million ($126,000).
An impossible balance
The number of foreign residents recached 4.1 million last year, a record high representing about 3.4% of the Japanese population. More than 930,000 Chinese nationals live in Japan, making it the largest group, while about 70,000 Americans also reside there.
The recent changes followed reports that some foreign residents had been driving up home prices or evading payments for their public health insurance. Japan has a national healthcare system which requires every resident to pay a monthly or yearly fee in order to access discounted medical services.
Others have been accused of exploiting the relatively affordable policies to acquire residency by creating shell companies, prompting calls to plug loopholes.
A surge in tourists has also annoyed some locals, who’ve accused them of causing a nuisance and increasing the cost of living– problems political pundits say were sometimes wrongly attributed to foreign residents.
The anger fueled the rise of Sanseito, a minor right-wing party that rallied against immigrants in recent elections, putting pressure on the ruling Liberal Democratic Party government.
Attendees hold signs that read ‘Monitoring Hate Speech’ and ‘Sanseito, Discrimination Party, Don’t be fooled’ as Sohei Kamiya, leader of the Sanseito party, second right, delivers a campaign speech in Tokyo earlier this year.Toru Hanai/Bloomberg/Getty Images
But the government’s new policies have sparked concerns among foreigners who have built a life in the country.
Some business owners have complained that the new capital requirement, which surged sixfold, significantly reduced their cash flow, rendering their business unsustainable.
Many Indian and Nepali restaurants were reportedly forced to close after their owners — most of whom came from their native countries to seek business opportunities in Japan — said their visa renewals had been rejected.
One of those affected by the new regulations is a transgender teacher from the US, who asked CNN for anonymity, fearing it could jeopardize her immigration status.
Although she and her American spouse have been living in Japan for nearly 10 years and she speaks fluent Japanese, she told CNN that her plans-in-progress to become a permanent resident are now more challenging.
“Our long-term goal is always to gain permanent residency, and that in particular is outrageously expensive under the currently proposed guidelines,” she said. “Obviously, it’s something that we could save up for, but it’s a wholly unpredicted expense.”
Her gender identity also adds levels of difficulty. Currently, her passport identifies her as a man and she is married to a woman. She can’t change it because Japan doesn’t recognize same-sex marriage. That would eliminate the possibility of using a spousal visa in Japan, which would have provided a backup option to staying in the country should her current work visa fall through.
Tokyo-based immigration lawyer Kazuki Yuda, from Touch Immigration Law Firm, said inquiries had spiked recently as people rushed to file their applications before the new changes came in.
He said the new rules were too strict and he expected the number of people qualifying for permanent residency to drastically drop.
Takaichi’s government is walking a fine line between the need to calm public anger, on which its political foes ride, while addressing the urgent need to replenish the country’s workforce, at a time when its neighbors, from South Korea to Singapore, are loosening rules to attract young talent.
Japan’s fertility rate — the average number of children a woman is expected to have during her lifetime — plunged to the lowest in a decade last year at 1.14, although there appeared to be a slight uptick in the first half of this year, according to official statistics.
A fertility rate of at least 2.1 is required to maintain a stable population without immigration. As a result, Japan finds itself in a precarious position, caught between a lack of locals to fill roles in the workforce and a distrust of immigrants who can provide labor.
For some, Japan was already losing its appeal as a destination for work, as the yen fell to 40-year lows against the dollar. Now worries about visa costs and the uncertainties are causing some to think twice.
“As a fresh graduate, fees like this would have been impossible for me. Even now, I’m barely scraping by,” a foreign student wrote on X.
“Looking at the Japanese market 10 years from now, I genuinely feel from the bottom of my heart that things are heading for serious trouble,” she wrote.
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