Does Japan care about tax on foreign investments?
Posted: Wed Jul 13, 2022 4:00 pm
Hi and thanks for having me on the forum!
My situation: I have recently moved from Sweden to Japan (1½ month ago) and are working for a Japanese company now. In Sweden, I have nothing left (no car, no house etc.) except for some bonds investments I've done over the years. Money that I would like to keep in Sweden and kind of forget about to let them work their magic.
In Sweden, I'm planning on moving all my money to a account type called Kapitalförsäkringskonto (KF) (Which I think in English is Endowment insurance account). This is an account where I'm not - legally speaking - the one paying the tax to the Swedish tax authorities. I'm paying a fee to the owner of the account, which in turn is paid as the tax to the Swedish tax authorities. For the Swedish side of things, this is totally normal and I've checked with them that it's fine for me living in Japan while having this account. This is the account is most beneficial for me as a Swede (in most circumstances depending on how the market swings).
But how about Japan? Am I legally required to report about this? Or can I just simply let the money be for themselves, withdraw them in 25 years to my Swedish bank account and only have to worry about the tax on the Swedish side even if I'm living in Japan the whole time? And then maybe use a little bit of the money now and then (slowly) via my Swedish credit card here in Japan?
I'm a bit stressed about the whole thing and any input I can get regarding the situation is wholeheartedly appreciated.
My situation: I have recently moved from Sweden to Japan (1½ month ago) and are working for a Japanese company now. In Sweden, I have nothing left (no car, no house etc.) except for some bonds investments I've done over the years. Money that I would like to keep in Sweden and kind of forget about to let them work their magic.
In Sweden, I'm planning on moving all my money to a account type called Kapitalförsäkringskonto (KF) (Which I think in English is Endowment insurance account). This is an account where I'm not - legally speaking - the one paying the tax to the Swedish tax authorities. I'm paying a fee to the owner of the account, which in turn is paid as the tax to the Swedish tax authorities. For the Swedish side of things, this is totally normal and I've checked with them that it's fine for me living in Japan while having this account. This is the account is most beneficial for me as a Swede (in most circumstances depending on how the market swings).
But how about Japan? Am I legally required to report about this? Or can I just simply let the money be for themselves, withdraw them in 25 years to my Swedish bank account and only have to worry about the tax on the Swedish side even if I'm living in Japan the whole time? And then maybe use a little bit of the money now and then (slowly) via my Swedish credit card here in Japan?
I'm a bit stressed about the whole thing and any input I can get regarding the situation is wholeheartedly appreciated.