.png){kind=small}
Japan Immigration Bureau’s Latest Data: Business Manager Visa Applications Plunge 81%! What Are the New Pathways to Relocating to Japan?
I. Official Data: How Significant Has the Impact of Japan’s Policy Changes Been?
On October 16, 2026, Japan’s Immigration Services Agency released its immigration statistics for the first half of 2026. Today, we take a closer look at the figures and examine the latest trends in Japan’s immigration landscape, highlighting the key signals that individuals considering Japanese residency should pay attention to.
Overall Immigration Figures
From January to June 2026, the total number of foreign arrivals in Japan reached approximately 22.8178 million, including foreign nationals entering Japan and those granted special landing permission. This represented a year-on-year decrease of approximately 2.5%.
The vast majority of these arrivals involved short-term stays, accounting for approximately 19.35 million, primarily consisting of tourists and short-term business visitors.
An 80.9% Plunge in Business Manager Visa Arrivals
This is arguably the most striking figure in the entire report and one of the most frequently discussed developments in the immigration industry. In the first half of 2026, only 635 new arrivals entered Japan under the Business Manager visa category, compared with 3,329 during the same period in 2025 — a staggering 80.9% year-on-year decline. Previously, the Business Manager visa was one of the most popular pathways for high-net-worth individuals especially from China seeking to establish a presence in Japan and secure Japanese residency. Following the implementation of the new immigration requirements, however, this once-popular pathway appears to have experienced a dramatic slowdown.
Trends in Other Major Long-Term Residency and Work Visa Categories
● Engineer / Specialist in Humanities / International Services Visa: This is a major work visa category for skilled professionals and white-collar workers. A total of 23,994 arrivals were recorded in the first half of 2026, representing a 24.8% year-on-year decline. While this category has also experienced a downturn, the decline is considerably less severe than that of the Business Manager visa.
● Japan ICT (Intra-Company Transferee) Visa: A total of 4,297 arrivals were recorded in the first half of 2026. Despite the overall tightening of immigration trends, this figure was 3,662 higher than that of the Business Manager visa. The Intra-Company Transferee (ICT) pathway is based on the principle of transferring employees within multinational corporate groups. Unlike the Business Manager visa, it does not require substantial capital investment or the recruitment of local employees. Its regulatory framework is also relatively clear. The year-on-year decline for this category was 17.6%, significantly lower than the 80.9% decline recorded for the Business Manager visa. As traditional investment and business-startup routes face increasingly stringent requirements, the ICT pathway is emerging as an alternative for business owners and high-net-worth families seeking to establish a long-term presence in Japan through legitimate corporate arrangements, with potentially greater cost efficiency and regulatory predictability.
● Specified Skilled Worker and Technical Intern Training Programmes: In contrast to the declining trend in certain business and professional visa categories, Japan's labour-import programmes for blue-collar workers have continued to expand. The total number of arrivals under the Specified Skilled Worker category reached 43,348, representing an 18.1% year-on-year increase. Particularly noteworthy was the 281.8% surge in Specified Skilled Worker (ii) arrivals. These figures reflect Japan's continued efforts to address labour shortages, particularly by expanding pathways that allow skilled foreign workers to remain in Japan for longer periods. Meanwhile, immigration routes based on business investment are facing increasingly stringent requirements.
Changes in the Nationality Composition of Foreign Arrivals: A Striking Contrast
● Mainland China: The total number of new arrivals from mainland China in the first half of 2026 stood at 1,598,470, representing a sharp 57.3% year-on-year decline. This significant drop reflects a combination of factors, including changes in China's overall outbound travel patterns and the cumulative impact of tighter immigration and residency requirements across various Japanese visa categories.
● South Korea, Taiwan, India and Other Source Markets: In contrast, arrivals from several other major source markets recorded positive growth, including South Korea (+19.0%), Taiwan (+21.2%), and India (+25.7%). These contrasting figures also suggest that Japan's tightening immigration policies are not necessarily aimed at restricting all foreign nationals across the board. Rather, the impact appears to be particularly pronounced in investment- and business-startup-based immigration pathways.
II. Why Is Japan Tightening Its Immigration Policies?
Looking at the Business Manager visa figures alone, one might easily conclude that Japan is becoming increasingly unwelcoming to foreign nationals.
However, when we examine the policy changes introduced over the past year in chronological order, a clearer picture emerges: Japan is implementing a systematic tightening of its immigration framework through a series of targeted measures.
Key Policy Changes:
● October 2025: Japan significantly raised the eligibility requirements for the Business Manager visa. The minimum capital requirement increased sixfold, from JPY 5 million to JPY 30 million, accompanied by additional requirements concerning local employment and stricter scrutiny of business plans.
● April 2026: For applicants under the Engineer / Specialist in Humanities / International Services visa category working in certain customer-facing occupations (particularly those involving direct interpersonal services), Japanese language proficiency at JLPT N2 level became a mandatory requirement.
● October 2026: The application fee for Japanese Permanent Residency (PR) increased from JPY 10,000 to JPY 200,000.
● October 2026: Japan revised its guidelines for Permanent Residency applications, introducing stricter assessment standards concerning income, tax compliance, pension contributions and other residency-related obligations.
● April 2027: Applicants seeking Permanent Residency will be required to hold the maximum period of stay available under their respective visa category, generally five years. A three-year period of stay will no longer satisfy this particular eligibility requirement.
Taken together, these changes indicate a broader shift in Japan's immigration policy: greater emphasis on financial capacity, genuine business operations, Japanese language proficiency, tax compliance and long-term residency stability.
A series of closely timed policy changes points to a clear direction: Japan's immigration policy is shifting its focus from "whether foreign nationals can enter Japan" to "whether they can remain in Japan sustainably, lawfully and responsibly."
This shift is driven by a combination of factors, including Japan's demographic structure, labour market needs, social governance, fiscal pressures and domestic public sentiment.
i. Addressing Domestic Social Concerns and Perceptions of Unfairness
Friction arising from the rapid growth of Japan's foreign resident population has become increasingly visible. In recent years, the number of foreign residents and permanent residents in Japan has reached record highs, with the foreign permanent resident population exceeding 940,000. In some areas with relatively high concentrations of foreign residents, the population has increased several-fold within just five years. Alongside this growth, there have been cases involving individuals who fail to comply with local laws and regulations, improperly exploit social welfare benefits or take advantage of loopholes in the system. These developments have contributed to a sense of uncertainty in everyday life and perceived unfairness among some Japanese residents. Tightening immigration policies is, in part, a response to these domestic concerns.
ii. An Ageing Population and Growing Fiscal Pressure
Japan faces serious challenges associated with an ageing population and declining birth rates. Its social security and healthcare systems are already under considerable financial pressure. Previously, meeting the required residency period and satisfying certain income thresholds could be sufficient for some applicants to qualify for permanent residency. The revised requirements, including assessments benchmarked against national average household income and expectations regarding long-term pension contributions, are intended to screen out applicants who may become financially dependent on Japan's public welfare system. The government's objective is to ensure that individuals granted permanent residency have genuine and sustainable financial independence, rather than merely meeting the minimum requirements over a short period.
iii. Closing Regulatory Loopholes and Tackling Sham Residency and Shell Companies
The October 2025 reform of the Business Manager visa provides a clear example.
Previously, the minimum capital requirement was only JPY 5 million, which created opportunities for the establishment of shell companies and the acquisition of long-term residency through arrangements that did not always reflect genuine business operations.
By increasing the capital requirement to JPY 30 million, introducing mandatory local employment, requiring independent professional assessments and imposing a minimum Japanese language proficiency requirement of JLPT N2, Japan has significantly raised the barriers to entry. At its core, the reform is designed to discourage speculative applicants and prioritise foreign entrepreneurs who genuinely intend to establish and operate substantive businesses in Japan.
iv. Strengthening Social Integration and Compliance with the Rule of Law
In the past, the Immigration Services Agency's assessment of whether an applicant's permanent residency was "in the interests of Japan" was relatively broad and abstract.
The revised framework places greater emphasis on concrete obligations, including understanding and complying with Japanese social norms, tax regulations and social security requirements. Importantly, Japan is not only tightening screening procedures at the application stage but also strengthening post-approval compliance obligations through accompanying legislative amendments. Under the proposed framework, permanent residency may be subject to revocation in certain circumstances, including deliberate and prolonged failure to pay taxes, National Health Insurance premiums or Employees' Pension Insurance contributions. This reflects a broader policy direction: obtaining permanent residency is not simply about meeting the eligibility requirements at the time of application; it also involves an ongoing responsibility to comply with Japanese laws and social obligations.
Japan's official immigration policy direction is becoming increasingly clear: despite severe labour shortages, Japan continues to refine and expand its acceptance framework for foreign workers who can genuinely help address critical workforce gaps, particularly those under the Specified Skilled Worker (ii) programme. What is changing is not Japan's attitude towards foreign nationals, but the criteria used to select them.
III. What Types of Foreign Nationals Does Japan Want to Attract in the Future?
When we examine the policy changes discussed above, it becomes clear that Japan's preferred foreign resident profiles can broadly be divided into three categories.
Those who are considering Japan as a destination for business, employment or long-term residency can use the following categories to assess which pathway may be most relevant to their circumstances.
Category 1: Foreign Investors with Genuine Business and Management Capabilities
Japan aims to attract entrepreneurs who can establish and operate genuine businesses, create employment opportunities and make sustained tax contributions, rather than individuals who simply register a company to obtain residency status.
Potential pathways to consider include:
● Business Manager Visa
● Highly Skilled Professional Visa (Business Management Category)
● Intra-Company Transferee (ICT) Visa
● Japan System for Special Highly Skilled Professionals (J-Skip)
Category 2: Foreign Professionals Who Can Create Economic Value
Japan continues to require talent in IT, technological research and development, professional services and other industries facing skills shortages. However, greater emphasis is being placed on the legitimacy of the actual job position, the applicant's professional capabilities and the authenticity of the employment relationship. For individuals who have secured a genuine employment offer from a Japanese company, potential pathways include:
● Engineer / Specialist in Humanities / International Services Visa
● Highly Skilled Professional Visa (Research Category)
● Highly Skilled Professional Visa (Technical Category)
Category 3: Foreign Residents Capable of Sustaining Long-Term Independent Living
For individuals seeking long-term residency or eventually applying for Japanese Permanent Residency (PR), Japan is increasingly assessing a comprehensive range of factors, including:
● Income stability and financial independence
● Social insurance contributions
● Tax compliance records
● Japanese language proficiency
● Degree of social integration
Any significant weakness in these areas could become a substantial obstacle to obtaining or maintaining long-term residency status.
Japan is not closing its doors to foreign nationals. Rather, it is raising the overall standards for those seeking to establish a long-term presence in the country. In the past, the main question was how to enter Japan. Today, the more important questions are whether you can operate a genuine business, maintain stable employment, contribute consistently through taxation and genuinely integrate into Japanese society.
What Does This Mean for Individuals Planning to Obtain Japanese Residency?
● First: Stop Preparing Applications Based on Outdated Requirements.
The old approach of setting up a company with just JPY 5 million in capital, having little physical presence in Japan and conducting no genuine business operations is no longer viable under the current assessment standards. Attempting to pursue this outdated approach could result in visa refusal, leaving a negative immigration record and costing applicants valuable time and money.
● Second: Assess Your Eligibility and Choose the Right Immigration Pathway Early.
Although different individuals may share the same goal of establishing a long-term presence in Japan, the most suitable immigration pathways can vary significantly. Business owners: Consider the Intra-Company Transferee (ICT) pathway or the Highly Skilled Professional Visa (Business Management Category). Individuals with technical or professional backgrounds: Consider the Engineer / Specialist in Humanities / International Services Visa or the Highly Skilled Professional Visa (Technical Category). Genuine entrepreneurs intending to establish and operate a business in Japan: Prepare thoroughly in accordance with the revised requirements, including sufficient capital, local employment and a credible business plan. Choosing the wrong pathway at the beginning can lead to additional complications and repeated adjustments at every subsequent stage.
● Third: Plan for Visa Renewals and Permanent Residency from Day One.
Immigration assessments increasingly focus on an applicant's compliance history over several consecutive years, including tax payments, pension contributions and income records. Mistakes or compliance issues during the first year can create potential risks for future visa renewals and Permanent Residency applications. Long-term residency planning should therefore begin from the very first day, rather than being considered only when it is time to apply for Permanent Residency.
Globevisa Expertise and Our Commitment to Japan Residency Solutions
With over 24 years of experience in the Globevisa industry, Globevisa has established a presence through more than 50 companies worldwide. We currently offer over 140 immigration and residency programmes across 40+ countries, supported by a global team of more than 800 employees. To date, we have successfully assisted over 110,000 families in embarking on new journeys and building better futures around the world. In Japan, since the introduction of the relevant immigration framework in 2006, Globevisa has assisted more than 1,700 families with their Japanese immigration and residency plans.
More importantly, the recent regulatory changes have reshaped the competitive landscape of Japan's immigration industry. The significant overhaul of the Business Manager visa has triggered a major industry restructuring. Many smaller agencies lacking the operational capacity to provide genuine local employment services have chosen to withdraw from the Japanese market. Under the new requirements, businesses must establish genuine local employment arrangements, resulting in increased recruitment costs and ongoing compliance obligations. Many agencies lack the resources and infrastructure to implement these arrangements independently. Instead, they leave applicants to manage the recruitment process themselves, placing the associated risks entirely on the applicants and potentially creating complications for future visa renewals and Permanent Residency applications.
Globevisa was among the industry's early pioneers in challenging the practice of nominal employment arrangements and shell-company affiliations. We are also one of the leading organisations with the operational capacity to arrange genuine local recruitment and employment for our clients. Our employment solutions include genuine Japanese nationals or permanent residents who possess JLPT N2-level Japanese proficiency. We insist on three fundamental principles:
● Genuine recruitment
● Genuine employees
● Genuine employment relationships
This approach serves two important purposes. First, it helps strengthen the credibility of the initial visa application by ensuring that employment arrangements are genuine and properly documented. Second, it establishes a more robust compliance foundation for future Permanent Residency applications, ensuring that employment, taxation and social insurance records can withstand official scrutiny and reducing potential compliance risks.
Plan Ahead. Choose the Right Pathway.
Japan's immigration policies will continue to evolve. For anyone considering Japan as a destination for business, employment or long-term residency, the first step is to identify the immigration pathway that best matches their circumstances. The next is to understand the requirements under the revised regulations and determine the realistic timeframe for progressing towards Permanent Residency. Choosing the right direction from the beginning makes every subsequent step more meaningful.
Comments