Downsides to changing to Japanese citizenship?

[Biketokyo]

I’ve recently been thinking about applying for Japanese citizenship instead of PR and am wondering if there are any downsides I haven’t thought of.

This has been my home for nearly 20 years, my family is here, my child has US/Japanese dual citizenship so they can choose which they want when the time comes, and I have no intention of moving back to the US. I am a considered a permanent tax resident of Japan and don’t have anywhere near the $2 million necessary to trigger a US exit tax.

The benefits I see of switching to Japanese citizenship are being able to easily use NISA and iDECO as well as having the peace of mind that comes from knowing I can’t be kicked out of my adopted home country (Voting here would be a plus too of course).

The only benefit I see of remaining a US citizen is having the option to move back there if absolutely necessary for some reason (a worse disaster than 3/11, geopolitical instability in east Asia, unexpected disasters, etc.). My savings are primarily in a taxable brokerage account in the US, and some in a Roth IRA. I assume I would have to transfer these to a Japan based brokerage if I am neither a US citizen nor resident.

Are there any downsides I’m overlooking in terms of investing/saving, inheritance, or anything else? Do any of you have experience with getting Japanese citizenship (and then renouncing your US citizenship)?

Thanks in advance!

[RetireJapan]

I have been thinking about this for a long time (I'm not US, so have no financial incentive to do so).

My motivation is similar: this is my home and I want to right to live here, not just permission (which is what I have with PR). Being able to vote, have a kanji name, and be treated normally by government/institutions are pluses.

The main (only?) downside is losing UK citizenship, but under current rules I can ask for it back later.

The immense hassle of changing my name on all my accounts is also a bit daunting, as is a small concern over the UK state pension after a name/nationality change.

I think I will do it eventually, but I'm not in any rush.

I would like to improve my Japanese before naturalising as well.

[sutebayashi]

The only benefit I see of remaining a US citizen is having the option to move back there if absolutely necessary for some reason

Not American myself, but that is a big reason for me -options.

I have been here 20+ years now, half my life spent here including virtually all my adult life. I was riding my bike around Tokyo earlier today and still thinking, “wow”, here I am in Japan.

But in later life, I can imagine myself going back “home”. Whether family constraints allow for that I don’t know.

The USA is a big country isn’t it? There must be a lot of nice places to live there.

Personally I never saw an attraction to even PR until I wanted to get a mortgage (till then my company had handled my visa so little bother), and I don’t see anything that would increase my personal happiness by swapping for a Japanese passport. I like not having to vote for the politicians here, and still vote for my preferred candidates back “home” although it doesn’t affect me now. But maybe it will help make for a good option in future.

I have no issues using NISA and iDeCo with PR.

And if this is the sort of country that would kick you out, what would they do with you, if they couldn’t kick you out?

Options, versus personal sense of where one wishes to belong, I guess this is the what it boils down to?

I guess I see myself as an international person of mystery, rather than belonging to any nation. I am forced to obtain pieces of paper and data from these places, but I like to hedge my risks.

[Biketokyo]

Unfortunately US tax rules for citizens (regardless of country of residence) mean that it is very difficult to take advantage of NISA or iDECO. I could use them but my understanding is that the US would tax the gains on those accounts [maybe even at the higher foreign earned income rate) making it rather pointless. And I can’t contribute to any tax advantaged accounts in the US either.

As for moving back to the US, I enjoy visiting, but about two months is the limit before I want to get back home to Japan. I completely understand that for many people keeping the option of returning to one’s home country makes sense though.

@Ben, why do you want to wait until you have improved your Japanese more? Is it just having more of a feeling of belonging to the culture more?

[adamu]

I don't know if giving up citizenship may make you more likely to be flagged when entering the US?

Germany And UK Warn Of Travel To US After Reports Of Detentions, Forbes

[RetireJapan]

@Ben, why do you want to wait until you have improved your Japanese more? Is it just having more of a feeling of belonging to the culture more?

Couple of things. I had a slightly unpleasant experience in my naturalization preliminary interview in 2011: I turned up hoping to get information and advice, but my case officer was rude and unpleasant. He also asked me to handwrite my essay of intent on the spot, which I was not ready to do. Kind of embarassing.

The people I had spoken to previously were very nice and encouraging, so I think I was just unlucky with that particular person.

Also, I kind of feel that a citizen should at least be able to read general texts fluently (newspapers, books, etc.), and I am not quite there yet.

[AreTheyTheLemmings?]

An acquaintance who took Japanese citizenship said it was just a reflection of reality; he had, for all intents and purposes, become "Japanese" so becoming Japanese was the natural thing to do.

I like that view of naturalisation: not something done for the purpose of securing, gaining, or avoiding something, but rather matching your official status up to your lived and felt reality. It's just who you are, for better (upsides) or for worse (downsides).

[zeroshiki]

The biggest one is they require you to lose your previous citizenship. For people from the 3rd world, this is a not much of a big deal but I know this trips most Westerners up. Because you're American, there's the incredibly onerous penalty they make you pay to remove US citizenship (which is a requirement for Japanese naturalization). I think it's $2500 and they make you jump through an immense amount of hoops to do it.

I like how AreTheyLemmings put it. It's an acknowledgement of something that is already true. You've "turned Japanese" so its just a matter of making it official.