Working remotely from Japan: the complete guide for British nationals

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 £50,000), international health insurance covering at least 10 million yen, and work exclusively for clients or employers based outside Japan. British nationals are eligible. After 6 months, you must leave Japan for 6 months before reapplying. Cost: approximately 3,000 yen (£15).

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

Youth Mobility Scheme (YMS): available for British nationals 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 £2,500 in available funds and a return ticket. Places are allocated annually via a ballot system and can only be used once in your lifetime.

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 London or other major UK cities, the cost of living is very competitive particularly with the current favorable GBP/JPY exchange rate.

Accommodation: a furnished studio in Tokyo costs between £600 and £1,200/month. In Osaka or Fukuoka, expect £450-£850. These prices compare very favourably to London 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 £5-£10. Konbini (7-Eleven, Lawson, FamilyMart) offer full meals for £3-£5 well below UK high street prices.

Transportation: the Suica/Pasmo IC card covers all transit needs. Monthly budget: £40-£80 in the city. The Japan Rail Pass (JR Pass) is worth it for intercity travel.

Coworking: expect £130-£260/month for a membership. Cafés with free WiFi are a common alternative.

Pro tip: the GBP/JPY exchange rate is currently very favourable for British nationals, making Japan one of the most cost-effective developed countries to base yourself in outside Europe.

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 £260/month for a hot desk. andwork offers design-forward spaces in Shibuya and Shinjuku with a creative atmosphere, from £175/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 £5-£9 per 3 hours.

Osaka The Deck is a community coworking space in the creative Minami district, around £130/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 £5-£8/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 British digital nomads spending time in Japan. Unlike Americans, British nationals are taxed on a residence basis, not citizenship meaning that establishing non-residency in the UK can significantly reduce your UK tax liability.

UK Tax Residence HMRC uses the Statutory Residence Test (SRT) to determine whether you are UK tax resident. If you spend fewer than 183 days in the UK in a tax year and sever sufficient ties (home, family, work), you may qualify as non-UK resident and avoid UK income tax on foreign earnings. However, the SRT is complex and the number of "ties" you retain matters significantly.

Self Assessment If you are self-employed or a sole trader, you must continue to file a Self Assessment tax return with HMRC as long as you remain UK tax resident. If you are employed by a UK company and working remotely from Japan, your employer may need to consider permanent establishment risk and payroll implications.

National Insurance Contributions (NICs) You may choose to continue paying voluntary Class 2 or Class 3 NICs while abroad to protect your State Pension entitlement and access to future NI-linked benefits. Gaps in NI contributions can affect your State Pension worth reviewing before departure.

UK-Japan Tax Treaty The UK and Japan have a bilateral tax treaty designed to prevent double taxation. For nomads on short stays (under 183 days), this treaty ensures you are not taxed in Japan on income earned for a UK employer or UK clients.

ISAs and pensions You cannot contribute to a Stocks and Shares ISA or Cash ISA in years when you are non-UK resident. Your existing ISA holdings are protected but no new contributions are allowed. Workplace pension contributions may also be affected check with your pension provider before leaving.

Recommendation: consult a UK-qualified accountant or tax adviser experienced in expatriate taxation before departure. Firms such as Blick Rothenberg, BDO, or specialist expat services like ExpatTax can advise on SRT, NICs, and pension implications.