Japan considers tightening income requirements for long-term residence applications

Japan is considering a proposal to tighten income requirements for long-term residence applications as part of broader measures Prime Minister Sanae Takaichi is weighing to manage the rapidly rising number of foreigners in the country.

Current long-term residence framework

Japan currently has about 940,000 people with long-term residence status, representing 20% of the total foreign residents. Those individuals have unlimited residence duration and unrestricted work rights.

To qualify for long-term residence, applicants generally need a clean conduct record, assets and skills sufficient to support independent living, and alignment with Japan’s interests. In principle, people who have lived in Japan for 10 years or more may be eligible.

Income requirement under review

At present, there is no specific income requirement beyond annual income guidance of about 3 million yen (roughly $18,800) used to assess whether applicants can maintain independent living. However, proposals to tighten this requirement are under discussion, and a final decision could be issued in fiscal year 2026, according to Nikkei Asia.

Related policy moves and timeline

Japan is also raising standards for long-term residency. Previously, foreigners in Japan who extended a working visa for a three-year term could apply for long-term residence. From April 2027, the rule will change so that only those with a five-year working visa can apply.

In the United States, the Trump administration has introduced a visa that allows foreigners to apply for long-term residence by paying $1 million, aimed at attracting wealthy individuals.

Budget and political discussions

Discussions on further tightening requirements are being driven by pressure from both ruling and opposition parties. Earlier this week, Liberal Democratic Party (LDP) leader Sanae Takaichi’s LDP and the Japan Conservative Party agreed to form a forum to discuss foreigner policy to help ensure the FY2026 budget law is approved in the Upper House, where the ruling coalition holds a majority.

The ruling coalition agreement between the LDP and the Japan Innovation Party states that “a population strategy defining targets for the number and core policies related to accepting foreigners will be developed in FY2026.”

Earlier this year, the Japan Innovation Party proposed capping the share of foreigners in Japan. Currently, the only visa category with a numeric cap is the “Specified Skilled Worker” visa, designed to address labor shortages at workplaces.

Caps under a new system

A new system to replace Japan’s Technical Intern Training Program from fiscal 2027 will also set limits. The combined cap for the new system and the Specified Skilled Worker program will be 1.23 million people, calculated based on the labor force needed.

Potential social and economic impact

Limiting the number of highly skilled professionals—such as interpreters and engineers—or restricting long-term residents already settled in Japan would have significant social and economic impacts.

“Stricter requirements for each visa category will slow the rise in numbers. First, we must work steadily to optimize the requirements for those seeking long-term residence. Discussions on rules to limit the foreign share per capita should be conducted afterward,” a senior official of the Immigration Services Agency of Japan (ISA) told Nikkei Asia.

Foreign resident figures and outlook

Japan had 4.12 million foreign residents by the end of 2025, about 3.3% of the total population, according to ISA. In 2023, the National Institute of Population and Social Security Research of Japan projected that the figure would reach 9.38 million by 2070—more than 10%.