Visa Fees to Increase Fivefold; Real Estate Brokerage Services for Overseas Residents to Be Taxed
The Japanese government has announced a series of policy changes that will significantly raise institutional costs for foreigners and overseas residents from fiscal year 2026 onward.
The two measures—an increase in visa issuance fees and the abolition of consumption tax exemptions for real estate brokerage services—mark a potential turning point in Japan’s approach to managing cross-border mobility and capital inflows.
Visa Issuance Fees to Increase Fivefold from FY2026
From fiscal year 2026, the government plans to raise visa issuance fees for foreign nationals to roughly five times the current level.
This policy is included in the FY2026 initial budget proposal approved by the Cabinet on December 26, with the government expecting approximately ¥120 billion in annual fee revenue.
While international mobility continues to expand, the move suggests a shift toward having users bear a greater share of the administrative costs associated with visa processing and system management.
Consumption Tax Exemption for Overseas Real Estate Brokerage to Be Abolished
In addition, the government and ruling coalition have decided that from October 2026, consumption tax will be applied to brokerage fees when overseas residents engage in real estate transactions in Japan.
Until now, brokerage services provided to overseas residents were treated as tax-exempt on the grounds that they were similar to exports. However, concerns have grown over disparities with domestic residents and perceived unfairness amid the increase in property purchases by foreign investors.
Under the new rules, brokerage fees paid at the time of purchase or sale will become taxable. Management fees and other services already subject to consumption tax will continue to be taxed.
From “Openness” to “Scrutiny”
What these two policy changes have in common is a shift away from broadly preferential treatment for foreign nationals and overseas capital.
While Japan continues to seek global talent and investment, policymakers are placing greater emphasis on fairness with domestic systems and the fiscal sustainability of public administration.
As these changes take effect, the cost structure of working, living, and investing in Japan is likely to evolve.
Both companies and individuals are entering a phase where decisions must increasingly be made with institutional changes firmly in mind.
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