Hi, I’m getting closer to acting on a plan I’ve been thinking about for a while: leaving Japan and taking my dual-citizen children back to my home country. I have PR and have lived here for over 15 years, so this has always been a “just in case” scenario. But between rising long-term interest rates and general economic uncertainty, I’m starting to worry about the future—for my kids and myself. Before my kids have to decide their citizenship, I’m wondering if it would be better for them to spend time in my home country. And it would be good to be there for a few years before my parents pass away and I receive an inheritance.
My main question is about tax residency.
I have PR in Japan. My spouse (a Japanese citizen) owns our house here; I’m not on the deed. My spouse doesn’t want to move to my home country, and we don’t really want to divorce. So realistically, my spouse would stay in Japan, and I would take one or both kids with me.
If I move back to my home country, get a job there, and establish a home there (maybe live with family for a while, though), but my spouse (and maybe an older child) stay in Japan, will Japan still try to tax me? Specifically:
- Would Japan consider me a tax resident because part of my immediate family remains here?
- Would Japan try to tax my income earned in my home country?
- What about capital gains, interest, etc. in a brokerage account in my home country? And inheritance, assuming I get that five or more years from now?
- I’ve also paid into the Japanese pension and want to receive it. If I keep a Japanese bank account open to receive that, does that make Japan still look like my tax home?
Basically, I’m trying to understand the tax implications of moving back to my home country when part—but not all—of my immediate family stays in Japan. Would things be cleaner legally/tax-wise if we divorced, or is that unnecessary?
Any insight from people who have been through this or are thinking about doing something similar would be appreciated.
by JPcoolstar