Japan
Crypto taxed as 'miscellaneous income' at progressive rates up to 55%(!). Not treated as capital gains (which is only 20% for stocks). Highest crypto tax rate among major economies. Reform discussions ongoing.
FATCA Partner
Yes
FATF Status
Clear
EU Blacklist
No
Dual Nationality
Not allowed
CARF Status
Committed
Bitizenship
Not yet
CARF Reporting
Committed
Japan has committed to implementing CARF but has not yet specified an exact timeline. When active, crypto service providers will be required to report user transactions to tax authorities.
Tax Rates
Activity Taxes
Staking
15-55% (miscellaneous income)
Mining
15-55% (miscellaneous income)
DeFi
15-55% (miscellaneous income)
NFTs
15-55% (miscellaneous income)
Taxable Events
Crypto → Fiat
Taxable
Crypto → Crypto
Taxable
Holding Period
No holding period benefit
No holding period benefit; all gains taxed as miscellaneous income
Regulation & Residency
Regulatory Body
NTA (National Tax Agency); FSA (Financial Services Agency); JFSA
Residency Requirement
Various visa categories; table stakes for working in Japan
Reporting Requirements
Annual kakutei shinkoku (final tax return); exchanges report to NTA
Citizenship & Residency Path
Business manager visa; citizenship after 5+ years continuous residency
Resilience & Plan B
Jurisdictional Resilience
How well-equipped this jurisdiction is for a crypto holder who wants stability, access, and protection.
JRS
Institutions (25%), banking (20%), tax clarity (20%), business (15%), privacy (10%), geopolitical (10%). Full methodology →
Plan B Readiness
How fast you can go from “I want to move” to “I’m a tax resident with banking and optionality.”
PBR
Business ease (25%), citizenship path (20%), dual nationality, quality of life & safety (15% each), Bitizenship (10%). Full methodology →
Notable Conditions
- →Crypto classified as 'miscellaneous income', NOT capital gains
- →Stock capital gains = 20%, but crypto = up to 55% (huge disparity)
- →Progressive: 15% → 20% → 23% → 33% → 40% → 45% income + ~10% local
- →Each crypto-to-crypto swap is a taxable event
- →Reform advocacy ongoing: industry pushing for 20% flat rate like stocks
- →VAT exempt since 2017
- →Japan lowering rates for qualifying assets in some proposals
Living & Lifestyle
Cost of Living
High
Banking Access
Excellent
Quality of Life
Very High
Lifestyle Scores