Digital nomad in Japan for Australians

Since March 2024, Japan has offered several options suited to remote workers.

Digital nomad visa (Designated Activities - Notification 53): launched in March 2024, it allows stays of up to 6 months. Requirements: minimum annual income of 10 million yen (approximately AUD $95,000), international health insurance covering at least 10 million yen, and work exclusively for clients or employers based outside Japan. Australians are eligible. After 6 months, you must leave Japan for 6 months before reapplying. Cost: approximately 3,000 yen (AUD $30).

Tourist visa exemption (90 days): Australians can stay up to 90 days without a visa under the Australia-Japan bilateral agreement. Technically, paid work is prohibited under this status, but working remotely for an Australian-based employer or clients remains a legal grey area in practice.

Working Holiday Visa (subclass 417 equivalent / Japan WHV): available for Australians aged 18 to 30, this visa allows a stay of up to 12 months with the ability to take on local work. It requires approximately AUD $3,000 in available funds and a return ticket. It can only be obtained once in your lifetime. Australia and Japan have one of the most active Working Holiday arrangements in the region.

Sponsored work visa: if you secure a Japanese employer, the "Engineer/Specialist in Humanities/International Services" visa is the most common for digital professionals.

Tax advantage: with the digital nomad visa (stay under 1 year), your foreign-sourced income is not subject to Japanese income tax.

Japan is often perceived as expensive, but compared to Sydney, Melbourne, or Brisbane, the cost of living is very competitive especially outside of Tokyo. With the current AUD/JPY exchange rate, Australians will find Japan surprisingly affordable.

Accommodation: a furnished studio in Tokyo costs between AUD $800 and $1,500/month. In Osaka or Fukuoka, expect AUD $600-$1,050. These prices compare very favourably to Sydney or Melbourne rents. Platforms like Sakura House, GaijinPot, and Real Estate Japan offer short-term leases suited to nomads.

Food: eating out is surprisingly affordable. A meal at an izakaya or ramen shop costs AUD $7-$13. Konbini (7-Eleven, Lawson, FamilyMart) offer full meals for AUD $4-$7 well below Australian café or takeaway prices.

Transportation: the Suica/Pasmo IC card covers all transit needs. Monthly budget: AUD $55-$110 in the city. The Japan Rail Pass (JR Pass) is worth it for intercity travel.

Coworking: expect AUD $160-$320/month for a membership. Cafés with free WiFi are a common alternative.

Pro tip: the AUD/JPY exchange rate is currently favourable for Australians. Japan is one of the most cost-effective developed countries to base yourself in, particularly compared to the high cost of living in Australian capitals.

Best coworking spaces in Japan

Japan has a rapidly expanding coworking scene, particularly in major cities.

Tokyo WeWork operates multiple locations in Shibuya, Roppongi, and Shinagawa, starting at around AUD $320/month for a hot desk. andwork offers design-forward spaces in Shibuya and Shinjuku with a creative atmosphere, from AUD $215/month. DMM.make AKIBA is a unique space in Akihabara combining coworking with a fablab featuring 3D printers and prototyping tools. Tully's Coffee, Doutor, and Starbucks chains offer reliable free WiFi. Manga cafés (manga kissa) provide private booths with WiFi for AUD $7-$12 per 3 hours.

Osaka The Deck is a community coworking space in the creative Minami district, around AUD $160/month. Grand Front Osaka Knowledge Capital offers a modern workspace near Umeda Station.

Fukuoka Fukuoka Growth Next is a city-backed incubator and coworking space. Fukuoka is recognised as Japan's most startup-friendly city thanks to its national deregulation zone. The Company is a coworking network covering the entire Kyushu region.

Kyoto Impact Hub Kyoto hosts an international community of freelancers and entrepreneurs. Kyoto Makers Garage is a collaborative space in the traditional Gojo neighbourhood.

Most Japanese coworking spaces offer very fast internet (100-500 Mbps), unlimited coffee, and a quiet atmosphere ideal for focused work.

Japan offers excellent connectivity, with a few specifics worth knowing.

Public WiFi is available in most train stations, konbini, cafés, and shopping centres. The Japan Connected-free Wi-Fi network covers thousands of free hotspots. The national average speed is around 42 Mbps, but coworking spaces and modern hotels easily reach 100-500 Mbps on fibre.

We recommend buying an eSIM before departure to be connected from the moment you land. Pocket WiFi devices are also very popular in Japan (available for rental at the airport for approximately AUD $8-$11/day). Carriers like IIJmio, Sakura Mobile, and Mobal offer data plans for foreigners without long-term contracts.

Important note: WiFi in traditional Japanese cafés (kissaten) and some restaurants may be limited or unavailable. Modern chain cafés are more reliable for work.

Taxes are a crucial subject for Australian digital nomads. Australia, like the UK, taxes on a residence basis rather than citizenship meaning your Australian tax obligations depend significantly on whether you remain an Australian tax resident while in Japan.

Australian Tax Residency The ATO uses several tests to determine tax residency, including the resides test and the domicile test. If you maintain a permanent place of abode in Australia, have family ties, or intend to return, you will likely remain an Australian tax resident and must declare your worldwide income to the ATO. Temporary absences for work or travel typically do not break Australian tax residency.

Income Tax As an Australian tax resident, your foreign-sourced income (earned from Australian clients or employers while in Japan) is generally taxable in Australia. Australia and Japan have a bilateral tax treaty to prevent double taxation. If you are on the digital nomad visa (under 1 year in Japan), you will not be subject to Japanese income tax, meaning your income is taxable in Australia only.

Medicare Levy Australian tax residents pay a Medicare Levy of 2% on taxable income. However, if you are living abroad and do not have access to Medicare, you may be eligible for a Medicare Levy Exemption for the period you are overseas. Apply through your tax return.

Superannuation If you are self-employed or a sole trader, superannuation contributions are voluntary but strongly recommended for retirement planning. If you are employed by an Australian company and working remotely from Japan, your employer's Superannuation Guarantee (SG) obligations (11% as of 2024) continue to apply. Your super fund remains active throughout your stay.

Goods and Services Tax (GST) If you are a sole trader or run a business earning over AUD $75,000/year, you remain registered for GST regardless of where you are based.

Recommendation: consult a registered Australian tax agent or accountant experienced in expat taxation before departure. The ATO website provides guidance on residency rules, and services like Tax Back International or specialist expat accountants can help with your specific situation.