If you move to Japan, and if you have not lived in Japan before, or not for more than 5 years in the last 10 years... Then,
For the first 1 year, or until you establish a residence, you will be classified as a Non-Resident for Tax Purposes.
After 1 year, or after you have establised a residence (move in to an address), you will be classified as a Resident for Tax Purposes.
This Tax Resident status then breaks down in to two sub-groups:
If you have been in Japan for Less than 5 years in the last 10 years, you will be classified as a Non-Permanent Resident for Tax Purposes.
If/When you have been in Japan for More than 5 years in the last 10 years, you will be classified as a Permanent Resident for Tax Purposes.
(This is completely independent of, and has nothing to do with your Immigration Status).
Each classification above has different tax liabilities. See Pages 5 to 13 here:
English
https://www.nta.go.jp/taxes/shiraberu/s ... df/050.pdf
Japanese
https://www.nta.go.jp/taxes/shiraberu/s ... df/060.pdf
remitting funds to Japan is not in itself a taxable event, but the income from which it is remitted is a taxable event.
There is a Tax Treaty between the UK and Japan. See Here:
English:
http://www.mof.go.jp/tax_policy/summary ... n-UKEN.pdf
Japanese:
http://www.mof.go.jp/tax_policy/summary ... n-UKJP.pdf
or Here:
https://www.gov.uk/government/publicati ... x-treaties
See Article 6
"Article 6
1. Income derived by a resident of a Contracting State from immovable property (including income from agriculture or forestry) situated in the other Contracting State may be taxed in that other Contracting State.
2. The term “immovable property” shall have the meaning which it has under the laws of the Contracting State in which the property in question is situated. The term shall in any case include property accessory to immovable property, livestock and equipment used in agriculture and forestry, rights to which the provisions of general law respecting landed property apply, usufruct of immovable property and rights to variable or fixed payments as consideration for the working of, or the right to work, mineral deposits, sources and other natural resources; ships and aircraft shall not be regarded as immovable property.
3. The provisions of paragraph 1 of this Article shall apply to income derived from the direct use, letting, or use in any other form of immovable property.
4. The provisions of paragraphs 1 and 3 of this Article shall also apply to the income from immovable property of an enterprise."
Therefore, your Profit from the Rental Income, after expenses, management fees and interest, but before you pay the Principle Repayment on any loan on the property will be taxable in the UK.
Your Profit from the Rental Income, after expenses, management fees and interest, but before you pay the Principle Repayment on any loan on the property will also be taxable in the Japan, depending on your Resident Status above.
If you are a Non-Resident, then the income will not be taxable in Japan for upto the first year...
When you become a Non-Permanent Resident for Tax Purposes, if you remit any funds to Japan in that tax year (Japan Tax Year is Jan-Dec) then the remittance WILL be taxable in Japan as if it was from the rental Income, whether it actually was or was not...
When you become a Permanent Resident for Tax Purposes, then the income WILL be taxable in Japan, whether you remit funds or not...
The rules about Overseas or Dual Domicile are very complicated. You will be taxable in Japan while you are registered as Resident in any City or Ward in Japan, under Immigration Status of "Spouse of Japanese Citizen' (on your Zairyu Card).
When you pay tax in Japan, you can claim as a Foreign Tax Credit for the income taxes and property tax paid in the UK which will reduce the Taxable Income in Japan (to zero but no more...), so that you are not Double Taxed on the money. You will only pay the amount equal to the higher rate of tax, whichever that is (UK or Japan).
However, in Japan, all the calculations are in JPY converted at the exchange rates you can find here:
https://www.murc-kawasesouba.jp/fx/past_3month.php
so there may be some discrepency between the GBP numbers and the JPY numbers due to big swings in the exchange rate.
You will qualify to submit the Blue Form Tax return in Japan.
You will have to keep detailed records of all expenses in a particular format for Japanese reporting, but it will probably be the same as the Management Agent will prepare for you UK taxes...
You do get Tax Deductions in Japan for yourself - Individual Deduction of Y480,000, for your spouse if she is not working, or only working part time short hours of Y380,000, for children dependents Y380,000 (Y630,000 if they are students aged between 19 and 23, more if they have disabilities), and you can even claim overseas dependents if you can prove you are supporting elderly parents of Y380,000 per overseas dependent, and deductions for insurance premiums, health insurance premiums, and so on...
You should definitely speak with a Qualified Professional for the full details, and probably have a Qualified Professional prepare your returns for the first couple of years, so that you understand what is going on. You may then be able to prepare your own tax returns in future years, bearing in mind the switch in reporting requirements from Non-Permanent Resident to Permanent Resident for Tax Purposes at the sooner of your 5 year anniversary of arriving in Japan, or when your total time spent in Japan in the last 10 years exceeds 5 years...
Did I forget anything?
You will also have to pay Household National Health Insurance (premiums depend on where you live), and depending on your ages and if working or not, Japanese Basic Pension Premiums of Y16,520 per month.
https://www.nenkin.go.jp/international/ ... nsion.html
If you know where you are going to live, I can look up the National Health Premiums for you.
There is a list of Accountants on this site somewhere...
