Introduction

On July 28, 2026, the Immigration Services Agency of Japan announced new operational guidelines regarding the stricter requirements for permanent residency permits for foreign nationals. Following yesterday’s announcement about the requirement for “income levels exceeding the average Japanese household income,” today’s update reveals a crucial detail: applicants with five or more dependents will be subject to an additional income requirement based on the number of dependents.

This update has significant implications for foreign nationals considering permanent residency applications, especially those with multiple dependents. Furthermore, in cases where foreign relatives have been registered as dependents for tax deduction purposes, the income requirements for permanent residency will also increase, requiring proper compliance with the system.

This article provides a detailed explanation of the revised requirements, the impact on tax-motivated dependent registration, and strategies for moving forward.

Details of the Revised Requirements

1. Additional Income Requirements for Applicants with 5 or More Dependents

The revised guidelines establish income requirements based on the applicant’s household size. Notably, for applicants with five or more dependents, “additional amounts for increased living expenses” will be added to the base income requirement corresponding to household size.

This means that households with more dependents will face higher income thresholds.

2. Foreign Residents Counted as Household Members

A key point is that dependents supported by the applicant are counted as household members even if they do not live together, and this explicitly includes relatives living abroad.

This significantly impacts foreign nationals who have parents or children remaining in their home countries. Even if these family members do not reside in Japan, if they are financially supported by the applicant, they count toward household size, potentially increasing the required income level.

3. Income from “Designated Activities” by Dependent Family Members Not Counted

While the guidelines state that the applicant’s income and the income of family members in the same household will be combined, income earned by family members on non-work status of residence (such as “Dependent” visas) through permitted part-time work will NOT be included in the calculation.

This means that even if a spouse or children work part-time jobs, their income will not count toward meeting the income requirement.

4. Retroactive Application to April 2025 Applications

Perhaps most importantly, the new income standards will be applied retroactively to applications submitted from April of this year onwards, following the guideline revision on October 1.

This represents an unexpected change for those who have already begun preparing their applications.

Impact on Tax-Motivated Dependent Registration – A Potential “Double-Edged Sword”

What is Tax-Motivated Dependent Registration?

Under Japan’s tax system, the more dependents one has, the greater the income tax and resident tax deductions. As a result, some individuals register relatives as dependents (for example, adult siblings living independently in their home country, or relatives with their own income) even when there is minimal actual need for financial support, thereby expanding tax deduction eligibility and reducing tax burden.

While such tax-motivated dependent registration may be legal in some cases from a tax perspective, registrations not based on actual support relationships carry the risk of being questioned during tax audits.

Impact on Permanent Residency Applications: Higher Income Requirements

Under the current revision, in cases where foreign relatives have been registered as dependents to expand tax deduction eligibility, the income requirements for permanent residency will also increase.

In other words, if dependents were added for tax deduction purposes, those dependents will also count toward household size when applying for permanent residency, raising the required income threshold—a “double-edged sword.”

Proper System Compliance is Required

Systems must be used properly. Dependent registration should be based on actual support relationships, not solely for tax purposes.

Especially for those considering permanent residency applications, it is necessary to reconfirm whether dependent registrations are based on actual support relationships.

Who Will Be Affected by This Revision?

1. Applicants with Multiple Dependents

Particularly affected are those who have parents or children in their home countries, or those who have established large families in Japan. The required income level may increase significantly for these individuals.

2. Households Where Spouses or Children Work Part-Time

Even if a spouse or children on “Dependent” visas work part-time, their income will not be counted. Therefore, even if the household’s total income is sufficient, if the applicant’s own income does not meet the threshold, the application may become difficult.

3. Those Already Preparing Applications

Since the new standards apply retroactively to applications from April onwards, those who have already prepared documents or were planning to apply need to reconfirm the requirements.

4. Those Who Increased Dependents for Tax Purposes

If dependents were registered without actual support relationships to expand tax deductions, the hurdle for permanent residency applications will rise. It is necessary to organize the actual support situation.

Strategies Moving Forward: What Can Be Done?

1. Accurately Assess Your Household Size and Income Requirements

First, accurately determine how many dependents you have, and how many of them live abroad. Then, confirm what income level will be required. This is the first step.

2. Organize Dependent Family Situations

If you support relatives living abroad, you may be required to provide documentation proving the support relationship (such as remittance records). If the necessity of support is low, or if registration was made for tax purposes, removing them from dependent status may be an option.

3. Explore Ways to Increase Income

If your current income does not meet the threshold, consider the following approaches:

  • Increasing executive compensation (for business owners)
  • Negotiating salary increases (for employees)
  • Increasing income through side work or professional qualifications

However, sudden income fluctuations may be viewed negatively during the review process, so a strategic, planned approach is essential.

4. Review Application Timing

Since applications from April onwards are subject to the new standards, those who were already planning to apply should reconfirm requirements and reconsider their application timing.

5. Consult with a Specialist

Many details of the specific income standards and operational implementation remain unclear. To develop the best strategy based on your individual circumstances, I recommend consulting with an immigration specialist (Gyoseishoshi/Administrative Scrivener).

Why Are Permanent Residency Requirements Being Tightened Now?

Government Policy: Addressing “Problematic Permanent Residents”

In January of this year, the government’s comprehensive policy measures for foreign nationals stated that “there are cases where requirements are no longer met after permanent residency is granted.” The policy emphasized that continuing to tolerate such “problematic permanent residents” could lead to prejudice against other permanent residents.

The policy explicitly stated the intention to tighten both the independent livelihood requirement and the national interest requirement.

The Intent Behind the Policy

Permanent residency is the most stable status of residence. It has no employment restrictions and does not require renewal of residence period. As a result, even if an individual’s economic situation deteriorates after obtaining permanent residency, revocation of status has historically been rare.

The government has taken issue with cases such as “receiving welfare benefits after obtaining permanent residence” or “ongoing delinquency in tax and social insurance payments,” leading to this tightening.

Seeing the “Person” Beyond the System

This revision may have a certain policy rationale. However, we must also consider how changes in the system affect foreign nationals who have worked diligently, paid taxes, created employment, and contributed to their local communities.

Systems must be used properly. However, we must always be aware of how those systems affect people’s lives.

For Employers and HR Managers Hiring Foreign Nationals

If foreign employees at your company are considering permanent residency applications, this revision may significantly impact them.

Particular attention should be paid to employees who:

  • Have multiple dependents
  • Have spouses or children on “Dependent” visas working part-time
  • Have income levels just at the threshold

What companies can do includes:

  • Considering salary increases or promotions
  • Reviewing position allowances or family allowances
  • Establishing support systems for permanent residency applications

Retaining foreign employees contributes to your company’s growth. Supporting permanent residency applications benefits the company as well.

Conclusion

The tightening of permanent residency requirements has a significant impact on foreign nationals. The additional income requirements for applicants with five or more dependents, counting of foreign residents, retroactive application, and the impact on tax-motivated dependent registration all have major effects in practice.

Systems must be used properly. Dependent registration should be based on actual support relationships, not solely for tax purposes.

However, just because the system has changed does not mean you should give up. The important thing is to first accurately assess your situation and consider necessary measures.

If you are considering a permanent residency application, or if you have many dependents and feel anxious, please feel free to contact us for a consultation. Let us organize the actual support situation, properly understand the system, and work together to find the best path forward.

Article URL: https://news.yahoo.co.jp/articles/545428823e9fec8a91058f37a94d7639c0be532d

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