Japan vs Singapore: Tax Comparison
Japan residents earning $400k face ~52.3% effective tax. Moving to Singapore (0–24% progressive) could save you $146,895 per year.
Best for: high-earning professionals and entrepreneurs who want Asia's premier financial hub with strong rule of law and no capital gains tax
Tax Savings at Every Income Level
Side-by-side comparison of annual tax paid in Japan vs Singapore (all amounts in USD).
| Annual Income | Japan Tax | Singapore Tax | Annual Savings |
|---|---|---|---|
| $100,000 | $36,454 (36.5%) | $5,650 (5.7%) | +$30,804 |
| $150,000 | $62,038 (41.4%) | $12,450 (8.3%) | +$49,588 |
| $200,000 | $90,258 (45.1%) | $21,150 (10.6%) | +$69,108 |
| $300,000 | $147,500 (49.2%) | $40,550 (13.5%) | +$106,950 |
| $400,000 | $209,045 (52.3%) | $62,150 (15.5%) | +$146,895 |
Side-by-Side Comparison
| Category | Japan | Singapore |
|---|---|---|
| Tax System | Progressive | 0–24% progressive |
| Effective Rate ($400k) | 52.3% | 15.5% |
| Capital Gains Tax | Yes | None |
| Monthly CoL (mid-tier) | $3,300 | $4,500 |
| Min Residency Stay | — | 183 days/yr |
| Visa Complexity | — | 7/10 |
| English Literacy | — | 9/10 |
Why People Move from Japan to Singapore
At $400,000 annual income, Japan residents pay approximately $209,045 in taxes. Relocating to Singapore reduces this to $62,150, a saving of $146,895 per year.
Cost of living in Singapore ($4,500/mo) is higher than Tokyo ($3,300/mo), but the tax savings of $146,895/yr far outweigh the $14,400 additional annual cost.
Singapore has strong English accessibility (9/10), making the transition easier for Japan expats.
Leaving Japan: What to Know
Tax Departure Rules for Japan
Japan imposes an exit tax (kokugai tenkin-zei) on unrealised gains exceeding ¥100 million in financial assets when a tax resident who has lived in Japan for 5 of the last 10 years departs. This was introduced in 2015 to prevent high-net-worth individuals from moving assets offshore tax-free.
Capital gains considerations: Japan taxes capital gains at approximately 20.315% (15.315% national + 5% resident). The exit tax only applies to financial assets exceeding ¥100 million. Real estate gains have separate rates depending on holding period (short-term: ~39%, long-term: ~20%).
Practical steps when leaving: Submit a moving-out notification (tenshutsu todoke) at your local ward office, file a final tax return or appoint a tax representative (nozei kanrinin), and close or restructure Japanese financial accounts. National Health Insurance ends upon deregistration.
Living and Working in Singapore
Singapore Tax System
Singapore's progressive tax rates top out at 24%, but foreign-sourced income is fully exempt from tax. There is no capital gains tax and no inheritance tax, making it extremely attractive for wealth accumulation.
Lifestyle in Singapore
Singapore is a global financial hub with exceptional safety, world-class healthcare, and seamless connectivity to all of Asia. English is an official language, making business and daily life straightforward for Anglophone expats.
Getting started: The Employment Pass (EP) or ONE Pass is required — Singapore does not have a digital nomad visa. EP requires a job offer from a Singapore employer with a minimum salary of S$5,000/month. ONE Pass requires S$30,000/month salary.
Japan to Singapore: What You Need to Know
Japan and Singapore have a comprehensive DTA. Singapore is the most popular destination for Japanese financial professionals seeking lower taxes, with a large Japanese community in the city-state.
Net financial benefit: After accounting for both tax savings ($146,895/yr) and cost of living differences (-$14,400/yr), relocating from Japan to Singapore produces a net annual benefit of approximately $132,495 at $400,000 income.
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Frequently Asked Questions
How much tax would I save moving from Japan to Singapore?
At a $400,000 USD annual income, moving from Japan to Singapore could save approximately $147k per year in taxes. Japan has an effective tax rate of ~52.3% at this income level, while Singapore charges 0–24% progressive. Actual savings depend on your income type, deductions, and residency status.
What is the tax rate in Singapore?
Progressive rates 0-24%. Foreign-sourced income fully exempt. No CGT, no inheritance tax.
What is the cost of living in Singapore compared to Japan?
A mid-tier lifestyle in Singapore costs approximately $4,500/month, compared to $3,300/month in Tokyo. That's $1,200 more expensive per month, or $14,400 additional cost per year.
Do I need a visa to live in Singapore?
Employment Pass or ONE Pass required. Not freely accessible to nomads. 183 days for tax residency. Requires work pass sponsorship.
What are the steps to leave Japan for tax purposes?
Submit a moving-out notification (tenshutsu todoke) at your local ward office, file a final tax return or appoint a tax representative (nozei kanrinin), and close or restructure Japanese financial accounts. National Health Insurance ends upon deregistration. Japan has social security agreements with over 20 countries including the US, UK, Australia, South Korea, Germany, and France. These allow pension aggregation and prevent double social security contributions.
What happens to my Japan pension if I move to Singapore?
Japan's National Pension (kokumin nenkin) requires 10 years of contributions for eligibility. Non-Japanese nationals leaving permanently can claim a lump-sum withdrawal payment (dattai ichijikin) covering up to 5 years of contributions. Employees' Pension Insurance (kosei nenkin) follows similar rules.
Will I pay capital gains tax when leaving Japan?
Japan taxes capital gains at approximately 20.315% (15.315% national + 5% resident). The exit tax only applies to financial assets exceeding ¥100 million. Real estate gains have separate rates depending on holding period (short-term: ~39%, long-term: ~20%). Japan imposes an exit tax (kokugai tenkin-zei) on unrealised gains exceeding ¥100 million in financial assets when a tax resident who has lived in Japan for 5 of the last 10 years departs. This was introduced in 2015 to prevent high-net-worth individuals from moving assets offshore tax-free.
How do I set up banking in Singapore as an expat from Japan?
Singapore's banking system is world-class. DBS, OCBC, and UOB all offer full digital onboarding for EP holders. Multi-currency accounts are standard.
Who is the Japan to Singapore move best suited for?
This relocation route is ideal for high-earning professionals and entrepreneurs who want Asia's premier financial hub with strong rule of law and no capital gains tax. At a $400,000 annual income, the tax savings alone amount to $146,895 per year compared to staying in Japan.