Optimizing depot and tax before returning to Japan

[Chizakura]

I'm a PR of Japan but currently live abroad temporary. I have a depot in my country and plan to move back to Japan next year (2025) and in the end of 2026 I will become a permanent-residence for tax.

I have two questions and hope someone was in the same situation:

1.) I've been back to Japan during the time when I lived abroad, but I was just staying in hotels. I assume this doesn't count into the 5 out of 10 years before I become a permament resident for tax?

2.) I think it would be beneficial to keep my existing depot (in IB) when I move back to Japan since then any gains will be taxed neither in Japan nor in my home country (since I'm not a resident of that country anymore). Since it's a foreign depot, I'll then move it to Japan before I become a permament resident for tax and before I do that, I should sell and rebuy all my stocks to reset the value for tax.

Is that plan working out?

[RetireJapan]

I think in order to be a permanent resident you need to have a jusho in Japan. So you might count as having been here the whole time.

Anyone else?

[zeroshiki]

Based on everything I've read from r/JapanFinance, being a PR and not giving it up when you left means you're automatically a permanent resident for tax purposes.

[Chizakura]

I think in order to be a permanent resident you need to have a jusho in Japan. So you might count as having been here the whole time.

Anyone else?

I unregistered my jusho in the city-hall and told them I'd be leaving Japan; and I got a 5-years re-entry from immigration. Hence I'm currently neither a resident nor tax-resident in Japan anymore - I pay taxes in my home country. As far as I have researched, this is not a problem in terms of my residence-status, as long as I return within the 5 years.

[Chizakura]

Based on everything I've read from r/JapanFinance, being a PR and not giving it up when you left means you're automatically a permanent resident for tax purposes.

Can you maybe remember where exactly this was described? From what I read from r/JapanFinance I'm liable for gift- and inheritance tax, but not other taxes.

For example, see this post: https://reddit.com/r/JapanFinance/comme ... d_to_work/:

Yes, you can apply for a 5 year re entry permit and leave and come back no problem.

You need to make a clean break from Japan to avoid being still considered a resident: your economic and residential centers must be outside Japan. Read the Japan tax treaty with the country you want to move to. Generally though, you need show you are earning income mostly from outside Japan sources, have a lease abroad (especially if you bought a house here).

If you’ve been in Japan over 5 out of the 10 years under HSP and PR, you may be subject to exit tax of any capital gains if your total assets worldwide are 100m yen or above.

In my case, both my economic and residential centers are outside of Japan and I don't own a house or something like that in Japan. EDIT: I also don't have any place of living like an apartment. If I were to return right now, I'd be homeless.

[Wales4rugbyWC23]

I think in order to be a permanent resident you need to have a jusho in Japan. So you might count as having been here the whole time.

Anyone else?

I unregistered my jusho in the city-hall and told them I'd be leaving Japan; and I got a 5-years re-entry from immigration. Hence I'm currently neither a resident nor tax-resident in Japan anymore - I pay taxes in my home country. As far as I have researched, this is not a problem in terms of my residence-status, as long as I return within the 5 years.

I did this with my wife last year who has PR and was going to live in Poland for a year with my kids while they went to an international school in Warsaw. There were no taxes (specifically municipal tax) that needed to be paid the next year based on the previous year's tax returns. I was surprised about this because she did have a municipal tax liability according to my accountant.

[captainspoke]

...
For example, see this post: https://reddit.com/r/JapanFinance/comme ... d_to_work/:

Yes, you can apply for a 5 year re entry permit and leave and come back no problem.

You need to make a clean break from Japan to avoid being still considered a resident: your economic and residential centers must be outside Japan. Read the Japan tax treaty with the country you want to move to. Generally though, you need show you are earning income mostly from outside Japan sources, have a lease abroad (especially if you bought a house here).

If you’ve been in Japan over 5 out of the 10 years under HSP and PR, you may be subject to exit tax of any capital gains if your total assets worldwide are 100m yen or above.

In my case, both my economic and residential centers are outside of Japan and I don't own a house or something like that in Japan. EDIT: I also don't have any place of living like an apartment. If I were to return right now, I'd be homeless.

I think this reflects your situation correctly. One daughter (dual) and her husband (japanese) moved to the US and they no longer pay income/residence taxes here*. And they did not sell their house, and pay the property tax on that, but that doesn't mean that they retain residence for tax purposes. (Nor do foreign real estate investors gain tax residency by buying a condo in tokyo.)

*The year they left they did. It was partway thru a calendar year, and while I'm not sure how everything worked, I did hear that since they were still here on Jan. 1st, that meant that residence tax was due.