If I'm living in Japan as a retiree, and my income is derived only from capital gains and/or dividends, does this equate to earned income when my 国民健康保険 premium is calculated? I'm trying to estimate living expenses post-retirement living in Japan, and I don't understand how 国民健康保険 works with regard to unearned income. Thanks for your help.
by uenoparker1
1 comment
> does this equate to earned income when my 国民健康保険 premium is calculated?
There is no meaningful distinction between “earned” and “unearned” income for NHI purposes. All income that you declare on your income tax return (other than retirement lump-sum income, such as a DC pension withdrawal) will be taken into account for NHI purposes.
You can use [this calculation tool](https://kei3.japanfinance.org/) to get an approximate NHI premium. Just uncheck the “employment income” box to prevent the employees’ expenses deduction from being automatically applied.
Incidentally, a very popular strategy for people in Japan living off investment income is to ensure their dividends are paid via a Japanese brokerage and their capital gains are realized within a withholding-type designated (特定) account. That way, they can avoid declaring any of their income on an income tax return and pay a tiny NHI premium. There has been talk in the last few years about getting rid of this loophole, but it still exists for now.
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