More than 950 foreign residents left Japan in the first half of 2026 without retaining their Business Manager status, nearly four times the number of visa holders who departed the country during the same period last year.
During the same period, new applications for the Japanese investor visa fell by 96% compared with the average monthly application volume before the policy change. Both major shifts follow regulatory updates the Immigration Services Agency of Japan (ISA) implemented in October 2025.
Current Visa Holders Leave Japan Prematurely
The Japanese government introduced structural changes to its Business Manager Visa on Oct. 16, 2025, altering the baseline criteria for obtaining and holding this investor visa:
- Capital and Investment: The minimum investment or paid-in corporate capital increased from ¥5 million to ¥30 million.
- Personnel and Employment: Companies must employ at least one full-time local staff member who holds Japanese nationality or an eligible long-term resident status.
- Language Prerequisites: The primary manager or at least one full-time local employee must demonstrate B2-level or higher Japanese proficiency.
- Professional Experience: Applicants must document three or more years of executive management experience or hold a relevant graduate degree.
- Business Plan Validation: All submitted operational plans must undergo a mandatory review and sign-off by a certified professional.
The update gave existing visa holders a transition period until October 2028 to meet the new requirements, particularly the ¥30 million investment threshold and the higher operating costs that came with the changes. A corporate survey by Tokyo Shōko Research found that 45.2% of 299 existing foreign-owned firms expected to be directly affected by these tighter requirements.
The new reality prompted 953 individuals to forfeit their status between January and June this year, before their visas expired or the transition period ended. This is nearly four times the 246 departures registered in the same months in 2025, according to Japan’s Immigration Services Agency (ISA).
Japanese media reports that many of these investors liquidated their assets and permanently forfeited their resident status by simply leaving, rather than sustaining non-viable business models.
Prior to the changes, departures averaged about 40 per month from January to September 2025. After the new rules took effect, investors gradually began to leave; monthly departures reached 80 in November 2025 and 114 in December 2025.
At the same time, official ISA tracking data show that new applications for the investor visa fell by 96% in the first five months after the overhaul, from an average baseline of 1,700 applications per month to just 70.
This decline in new applications coincides with fewer company registrations by foreign nationals.
Corporate tracking data compiled by Teikoku Databank shows a 52% decline in new company registrations by foreign nationals in the first half of 2026, falling to 4,731 registrations from 9,851 in the same period last year.
This decline is concentrated among regional investors, particularly in Asian markets, where the visa previously saw its highest utilization rates.
Why Did Japan Change Its Investor Visa Rules?
Until late 2025, the Japanese business visa was a popular immigration choice in Asia, particularly for Chinese investors. According to ISA figures, 46,781 individuals held the Business Manager Visa at the end of 2025, up nearly 20,000 over five years and about 30,000 compared with a decade earlier, with Chinese nationals accounting for roughly half of active visa holders.
However, this rapid growth is what led the Japanese government to tighten the rules. The Ministry of Justice said it needed to be stricter because some poorly funded businesses or shell companies were set up mainly to help people obtain residency. The overhaul aimed to limit the visa status exclusively to larger businesses with proven economic ties to the country.
Those who held valid Business Manager status prior to October 16, 2025, can renew their visa under the previous criteria until October 2028. After that, all renewal applications must fully comply with the updated requirements, including ¥30 million in capital, local employment, language proficiency, and a validated business plan, to maintain legal status.
