Can a Foreigner Inherit Assets in Japan?

Yes. Japan does not restrict foreigners from inheriting assets located in Japan. Whether you live abroad or are a foreign resident in Japan, you can receive an inheritance — but navigating the legal and tax landscape requires careful attention, as both Japanese law and your home country's law may apply simultaneously.

Which Law Governs the Inheritance?

Japan's Act on General Rules for Application of Laws (法の適用に関する通則法) determines which country's law governs an inheritance. The key rule is:

  • Succession is governed by the law of the deceased's nationality at the time of death.
  • For real estate in Japan, however, Japanese law applies regardless of the deceased's nationality in some procedural respects.

This means if a Japanese national dies, Japanese Civil Code rules on statutory heirs and shares will apply even if the heirs are all foreigners living abroad. If a foreign national dies leaving assets in Japan, their home country's inheritance law may govern who inherits, but Japanese procedures will govern how the Japanese assets are actually transferred.

Japanese Inheritance Tax for Non-Residents

This is where many foreign heirs are caught off guard. Japan can impose inheritance tax on foreign heirs in the following situations:

  • The inherited assets are located in Japan (such as real estate, Japanese bank accounts, or listed shares in Japanese companies) — Japanese inheritance tax applies to those assets regardless of where the heir lives.
  • The deceased was a Japanese resident at the time of death — Japanese inheritance tax may apply to the deceased's worldwide assets depending on the heir's residency status.
  • The heir is a Japanese resident — they are generally taxed on all inherited assets worldwide.

Non-resident foreign heirs inheriting Japan-based assets must file a Japanese inheritance tax return within 10 months of the date of death, even if they live overseas. Failure to file carries penalties.

Practical Challenges for Foreign Heirs

1. The Family Register (戸籍, Koseki)

Japanese inheritance procedures require the deceased's complete family register. For foreign heirs, this creates challenges: you must obtain all relevant koseki documents (which are in Japanese), and Japanese financial institutions will require them before releasing any assets.

2. No Japanese Identification

Foreign heirs without a Japanese residence card (在留カード) will need to provide alternative identification documents, often accompanied by certified translations. A registered seal certificate (inkan shōmeisho) is required for the inheritance division agreement — foreign heirs must use a signature certificate from their home country's embassy or a notarized signature instead.

3. The Inheritance Division Agreement (遺産分割協議書)

All heirs must sign an isan bunkatsu kyōgi-sho (inheritance division agreement) to transfer assets. Getting signatures from heirs scattered across multiple countries — and having them properly notarized or apostilled — can be time-consuming.

4. Dual Taxation Risk

Your home country may also tax the same inheritance. Japan has tax treaties with some countries (including the US, UK, France, and others) that provide relief from double taxation. Check whether a treaty applies and how it allocates taxing rights.

Step-by-Step: What a Foreign Heir Should Do

  1. Determine governing law — the deceased's nationality and residence at death.
  2. Obtain the Japanese family register — hire a Japanese lawyer or judicial scrivener to assist.
  3. Identify all Japan-based assets — real estate, bank accounts, securities, pension claims.
  4. Check inheritance tax obligations in Japan and your home country.
  5. Execute an inheritance division agreement signed by all heirs.
  6. File Japanese inheritance tax return within 10 months if required.
  7. Transfer assets — register property, close accounts, transfer securities.

Getting Professional Help

Given the complexity, foreign heirs dealing with Japanese assets should engage a Japanese bengoshi (attorney) or sōzoku-specialized gyōsei shoshi (administrative scrivener) early in the process. For tax matters, a Japanese zeirishi (tax accountant) with international experience is essential. Many such professionals now offer English-language services in major cities.