Friday, February 16, 2024
Japan joins other Asian countries in releasing a digital nomad visa, but barriers to entry might be too high for most.
Japan’s Immigration Services Agency just announced it will start issuing its long-anticipated digital nomad visa within the next few weeks.
According to a news media, the visa will be available to nationals of 49 countries.
A list that includes the United Kingdom and the United States. Once obtained, visa holders can legally live and work remotely from anywhere in the country for up to six months.
It has come as welcome news to the global digital nomad community, with the announcement garnering plenty of praise in online communities such as Reddit’s r/DigitalNomad sub and hundreds more comments on the social platform’s r/Japan page.
However, would-be digital nomads have been quick to point out that, like many new digital nomad visas, this one comes with some rather hefty requirements for eligibility.
As the news media reported, applicants must show they earn a minimum income of ¥10 million (about £54,356 or $66,622).
Applicants must also hold private health insurance, and visa holders will not be allowed to obtain a residence card. The visa expires after six months and is not eligible for renewal.
Although it comes with steep terms, the visa is likely to be a popular one.
It’s the result of a survey of digital nomads, who overwhelmingly indicated they’d prefer to be able to stay longer than the current, 90-day visa-free tourist stays allow.
And why not allow for an extended stay? After all, Japan ranked as the fastest-growing remote working hub in 2023, according to data shared with a news media by Nomad List, a website for remote workers, which analysed more than 300,000 check-ins on its database.
The eligibility requirements are quite strict and difficult to meet for the average digital nomad – Brittany Loeffler
But, beyond simply providing supply for the growing demand, Japan is also likely hoping to cash in on the economic benefits that can come with digital nomads moving in.
As the news media previously reported, a 2023 survey by Carlos Grider estimates that digital nomads contribute nearly $800bn to the global economy annually.
A lot of that cash was flowing to places such as Portugal and its neighbouring nation of Spain.
The former was home to nearly 16,000 digital nomads in December 2023, according to Nomad List, thanks to its Golden Visa residency program for expats looking to make Portugal a permanent home – plus a newly launched digital nomad visa of its own.
As for Spain, VisaGuide.World named the country the top destination for nomads thanks to its visa’s low barrier of entry, requiring proof of income at just €2,600 (£2,225, $2,394) per month, which equates to less than half the yearly salary Japan will soon require.
Japan’s high-income requirement also appears to be a trend across several countries in Asia that are dipping their toes in the digital nomad visa waters.
“To be honest, it doesn’t seem that Asia is introducing ‘easy’ digital nomad visas,” says Brittany Loeffler, the head of operations at Nomad Embassy, a website that helps nomads obtain the proper visas. “They are requiring higher salaries compared to Europe’s digital nomad visas or have strict requirements for the nature of their remote work.”
Additionally, Loeffler says that Southeast Asia has become an especially popular destination for digital nomads “due to the affordable cost of living, reliable wi-fi and great weather” but that the entry barrier might be too high for some people. “When there was news that Thailand had released a digital nomad visa (officially known as the Long-Term Residence Visa), the community was very excited,” she says. “Unfortunately, the eligibility requirements are quite strict and difficult to meet for the average digital nomad.”
Those requirements for Thailand include showing proof of income of at least $80,000 (£63,576) annually for the two years prior to the visa application date, and a minimum of $1 million in assets. But even with these higher barriers to entry, the country believes the visa could bolster the local economy. As the Thai Embassy explains, the visa “is believed to help boost economic development and stimulate overseas investment in the country, particularly in this post-pandemic phase. Through this special visa, the government hopes to bring in one million eligible foreigners over the next five years.”
“There is huge potential for digital nomads to help local economies – think tourism spending, but for weeks or months at a time,” Loeffler says. “Digital nomad visas are an excellent way for countries to boost their economies as they invite digital nomads to live in the country for a year and not have to worry about them taking jobs from citizens and residents. Instead, they earn their income overseas and spend it in the local economy where they hold the digital nomad visa.”
Loeffler, however, is aware that these visas can be problematic for locals.
“There is a downside to inviting digital nomads to a country, as we have seen in Lisbon, Portugal. Real estate prices skyrocket, making renting or buying a home in popular areas more difficult for the residents of that country. As landlords realise digital nomads can pay two or three times [the] rent each month, they are raising prices and the rest of the market is following.”
The same could hold true for major cities in Japan, like Tokyo, which has also experienced its own surge in housing prices even without the added pressures of the new visa.
Even still, that post-pandemic economic afterglow is likely to benefit Japan’s inbound tourism recovery plan (of which the new visa is a part) that was set forth by prime minister Fumio Kishida and unveiled in May 2023.
But, like Thailand, the high barriers might see some digital nomads forgoing the visa in favour of what is known as “visa runs”: staying as long as possible on a tourist visa, leaving the country to reset the clock and entering again on their tourist visa.
“Thailand is particularly hard because most people are there on an education visa [that] enables you to stay for six months or one year, or are there on a tourist visa and coming in and out doing visa runs,” says Evelina Krusinskaite, a 28-year-old digital nomad living in and out of Thailand. “It’s a bit of a pain because Thailand’s a great place to be.”
Krusinskaite was on a visa run back to her home in Ireland as we spoke but was already plotting her return back to Thailand, specifically to Chiang Mai, often touted as the “Digital Nomad Capital” of the world. While her move began under a working visa as a visiting English teacher, Krusinskaite explains she fell so in love with the city that, for now, she can’t wait to go back.
“I absolutely love Thailand,” she says. “People there are so kind.”
Though in true digital nomad form, when asked if she’ll continue this lifestyle of getting to live and work from anywhere forever, Krusinskaite refused to commit. She says, “Forever is a very long time.”
Ready to start a digital nomad life in Asia? Here are three other nations offering either a digital nomad visa or something close to it – and what they require.
Malaysia
Malaysia currently offers a digital nomad visa that allows people to stay in the country for up to one year. Applicants must have a valid passport; work remotely for their company; work in a “digital domain” such as IT, content creation or digital marketing; and show proof of income of at least $24,000 (£19,067) a year. Nomads must also show proof of health insurance.
South Korea
In January 2024, South Korea began offering its digital nomad visa that allows travellers to stay for up to two years. Applicants must also hold a valid passport, work remotely, show proof of income of at least $66,000 (£52,435) a year and hold valid international health insurance.
The Phillipines
In 2023, the Philippines released its digital nomad visa, allowing travellers to spend up to 12 months in country. Those wishing to use the visa must show a proof of income of at least $24,000 a year (£19,050) and proof of health insurance. The nation is debating extending the visa for up to 24 months.
Tags: digital nomad visa, japan
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