Tokyo: Japan has rolled out a sweeping overhaul of its permanent residency (PR) rules, introducing stricter income, pension and language requirements for foreign nationals, alongside a steep increase in application fees. The changes carry significant implications for the growing number of foreigners, including many Indians, living and working in Japan.
From October 1, Japan’s permanent residency application fee rose twentyfold, from ¥10,000 to ¥200,000 — roughly ₹1.22 lakh in Indian currency. The fee is payable only once the application is approved, not at the time of submission, though certain eligible applicants may qualify for a reduced fee of as low as ¥20,000. Japan’s Immigration Services Agency said the hike reflects the administrative costs of managing foreign entry and residency, processing PR applications, and aligning with similar fees in other countries. Fees for other immigration procedures, including residence status changes and visa renewals, have also been raised.
The most significant change lies in the new income eligibility criteria. Previously, assessments largely considered whether an applicant was financially self-sufficient. Under the revised guidelines, authorities will now evaluate household income more specifically, comparing it against the average income of Japanese households of a similar size, and assess whether that income level has been maintained consistently over time. For instance, a foreign national working in Japan with a spouse and children would have their household income compared against the average income of Japanese households of the same size, rather than judged against an absolute, universal threshold. Japan’s average annual household income currently stands at approximately ¥5.75 million.
Pension status has also become a key evaluation factor. The new framework will consider how long an applicant has contributed to Japan’s pension system, their contribution history, and the pension benefits they are projected to receive based on current income, measured against the benchmark of someone who has been enrolled in Japan’s Employees’ Pension system for 30 years. Applicants’ assets and savings may also be considered relevant in assessing overall financial stability.
Another significant change concerns Japanese language proficiency. Under the new guidelines, applicants will generally be expected to demonstrate Japanese ability equivalent to CEFR B1 level — roughly equivalent to JLPT N3 — reflecting intermediate-level ability to communicate reasonably in daily life, work and social situations, rather than merely basic vocabulary. However, exceptions apply to highly skilled foreign professionals, their family members, those who completed several years of schooling in Japan, and certain other specified categories, who may not be subject to the B1 requirement.
Most of these revised guidelines — covering income, pension and language requirements — will come into full effect for applications from April 1, 2027, with the income requirement already applied retroactively to applications filed from April 2026. The basic residency requirement for the standard PR route remains unchanged at 10 continuous years in Japan, generally including at least five years in a qualifying work or residency status. However, shorter routes and special exceptions continue to apply for certain categories, including spouses of permanent residents and highly skilled professionals, with residency requirements for spouses of Japanese nationals or permanent residents also being extended.
The overhaul comes amid a sharp rise in the number of foreign residents in Japan, prompting the government to more systematically regulate its immigration framework. The revised guidelines will now factor in income, pension, tax and public obligations, Japanese language ability, and understanding of Japan’s laws and systems as part of a comprehensive assessment — signalling that long-term settlement in Japan will require more than steady employment alone.
For Indian professionals, IT workers, engineers, students and businesspersons in Japan — many of whom aspire to obtain PR in the future — maintaining proper documentation of income records, tax payments, pension contributions, residency history and Japanese language proficiency will become increasingly important, as these factors are now central to the PR assessment process. Those planning to apply, or already working in Japan, have been advised to review the new requirements carefully ahead of the April 2027 implementation.