Permanent-residency fees could jump twentyfold, while tougher income, pension and language tests may force thousands of foreign workers, students and entrepreneurs to reconsider their future in Japan.
Japan has spent years attracting international workers, students and entrepreneurs to help offset its shrinking workforce. Now, a wave of stricter immigration rules is leaving some foreign residents wondering whether the door is beginning to close.
Starting in October 2026, the cost of applying for permanent residency is expected to rise to ¥200,000—roughly 20 times the previous amount. Fees for certain work and student visas will also increase, according to CNN’s report.
But the higher price tag is only one part of the shake-up.
Permanent residency is about to become much harder
Foreign nationals seeking permanent residency will reportedly need to demonstrate an income above the average Japanese household level.
From April 2027, applicants are also expected to show projected pension benefits comparable to someone who has contributed to Japan’s employee pension system for 30 years. Intermediate Japanese-language ability will become another requirement.
Permanent residency is one of Japan’s most valuable immigration statuses because it generally allows people to work without occupational restrictions and remain in the country indefinitely. Critics fear the revised standards could dramatically reduce the number of applicants who qualify.
Immigration professionals have reportedly seen a surge in inquiries from residents hoping to submit applications before the new requirements take effect.
Entrepreneurs face another costly hurdle
Foreign business owners have already been hit by a separate tightening of Japan’s Business Manager visa.
The required investment capital reportedly increased sixfold—from ¥5 million to ¥30 million. That has placed enormous pressure on smaller companies, particularly restaurants and family-operated businesses that cannot afford to leave such a large amount of capital tied up.
Some Indian and Nepali restaurant owners have reportedly closed their businesses after encountering difficulties renewing their visas.
The government says stronger requirements are needed to prevent applicants from establishing shell companies solely to obtain residency.
Why is Japan tightening the rules now?
The changes come amid growing public concern about overtourism, housing prices and claims that some foreign residents have failed to pay health-insurance contributions or follow local regulations.
Anti-immigration political messaging has also become more prominent. The right-wing Sanseito party’s “Japanese First” platform has put additional pressure on the governing Liberal Democratic Party.
Justice Minister Hiroshi Hiraguchi has presented the tougher measures as part of an effort to create an orderly society in which Japanese citizens and foreign residents can coexist.
However, critics argue that tourists and long-term residents are frequently treated as though they are responsible for the same problems—even though their circumstances are very different.
Japan still desperately needs foreign workers
The crackdown creates a striking contradiction.
Japan’s foreign-resident population reached a record 4.1 million in 2025, but that represented only around 3.4% of the country’s total population. At the same time, Japan continues to face an aging society, worker shortages and a fertility rate far below the level needed to maintain a stable population without immigration.
Japan’s fertility rate fell to approximately 1.14 in 2025, compared with the replacement level of about 2.1. The country therefore needs additional workers, yet it is making long-term settlement more expensive and difficult.
Neighbouring countries—including South Korea and Singapore—are competing for young international talent. Japan risks losing skilled workers if applicants decide that the financial costs and uncertainty are simply too high.
Who could be affected?
The biggest impact is likely to fall on:
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- Foreign residents preparing to apply for permanent residency
- International graduates hoping to remain in Japan
- Workers without high salaries or substantial pension records
- Entrepreneurs using the Business Manager visa
- Families relying on a particular spouse’s employment status
- Applicants who have lived in Japan for years but lack formal Japanese-language certification
Short-term tourists are not the primary target of these residency changes.
Is it time to apply?
People who already qualify for permanent residency may want to obtain professional advice quickly, especially if they were planning to apply later in the year.
However, rushing an incomplete application could create additional problems. Eligibility depends on personal circumstances, immigration history, taxes, pension contributions and other factors.
The bigger question is whether Japan can enforce stricter standards without discouraging the very workers and entrepreneurs it needs.
For thousands of foreign residents who have built careers, businesses and families in the country, the answer may determine whether Japan remains their long-term home—or whether it is finally time to say goodbye.
Immigration requirements can change. Applicants should confirm the effective rules with Japan’s Immigration Services Agency or a qualified immigration professional before making decisions.
