Moving to or Leaving Japan with Crypto: Exit Tax and Residency

Your residency category decides what Japan taxes

Japanese income tax sorts individuals into three groups, and the rules for each are very different. Under the Income Tax Act, a resident (居住者) is someone who has a domicile (住所, jusho) in Japan, or who has had a residence (居所, kyosho) here continuously for one year or more. Everyone else is a non-resident. The NTA explains that domicile means the centre of your life, judged on objective facts such as where you live, work and keep your family, not on what your visa says.

Residents are then split again. A non-permanent resident (NPR) is a resident who is not a Japanese national and whose total time domiciled or resident in Japan over the past ten years is five years or less. Everyone else who is resident, including all Japanese nationals, is taxed on worldwide income. In English this second group is often called "permanent residents", but it has nothing to do with the permanent residency visa: it is purely a tax category based on time spent here.

Japan's three income-tax residency categories and what they mean for crypto (NTA Tax Answer No.2875, Income Tax Act Art. 2 and 7, NTA crypto FAQ)
Category	Who	What Japan taxes	Crypto in practice
Non-resident (非居住者)	No domicile in Japan and less than one continuous year of residence here	Japan-source income only	Selling crypto held at a Japanese exchange is not taxed in Japan, per NTA FAQ 1-8
Non-permanent resident (非永住者)	Resident, not a Japanese national, and domiciled or resident in Japan for 5 years or less in the past 10	Everything except foreign-source income, plus foreign-source income paid in Japan or remitted here	Unsettled. Gains realised on a Japanese exchange are paid in Japan, so taxable; offshore gains are a grey area
Resident other than NPR (often called "permanent resident" for tax)	Japanese nationals, and foreign nationals past the 5-in-10-years line	Worldwide income	All crypto gains, wherever the coins are held

A few practical rules of thumb. If you come to Japan to work under a contract expected to last a year or more, you are generally presumed to have your domicile here from the day you arrive. If you leave Japan for an assignment abroad expected to last a year or more, the NTA presumes you become a non-resident when you leave. If two countries both treat you as resident, the relevant tax treaty's tie-breaker rules decide, looking at where you have a permanent home, your centre of vital interests, your habitual abode and finally your nationality.

Your residency status also matters for opening accounts. Japanese exchanges serve residents with a residence card and a Japanese address; our guide to crypto for foreigners in Japan covers account opening in detail.

Moving to Japan with crypto: cost basis and records

The day you become a Japanese tax resident, gains you realise start to count in Japan (subject to the NPR rules below). The awkward part for many arrivals is that Japan uses your original cost. The NTA crypto FAQ defines the cost of purchased crypto as the price you paid plus purchase fees (FAQ 1-5), and we found no rule that resets cost basis to market value when you arrive. Gains that built up while you lived elsewhere can therefore be taxed in Japan when you sell as a resident, at progressive rates of up to about 55%. Some countries tax departing residents on unrealised gains; Japan does not give you a matching step-up on arrival.

Japan also computes everything in yen. A purchase made in dollars or euros is converted into yen at the time you bought, and the sale at the time you sell. The annual reports Japanese exchanges issue use the bank telegraphic mid-rate (TTM) on the trade date for foreign-currency trades, and that is the standard approach for your own records. The side effect is that a move in the exchange rate can create a yen gain or loss even if the coin's dollar price did not change.

All units of the same coin are pooled and averaged, using either the total-average method or the moving-average method. Your pre-arrival purchases go into that pool. If you never file a notice choosing a method, total-average applies by default. When the notice is due for someone whose first purchase happened before they became resident is the kind of detail to confirm with your tax office in your first year.

The single most useful thing you can do before you arrive is export everything: full transaction histories from every exchange, wallet addresses, and bank statements showing purchases. Some foreign exchanges restrict customers who move to Japan, and the FSA has warned a number of them for serving Japanese residents without registration (see offshore exchanges and Japan). If records are lost, the NTA allows 5% of the sale price to be used as the cost of coins you cannot trace (FAQ 2-7), which taxes 95% of the proceeds. Proper records almost always beat that.

Non-permanent residents and the remittance basis: proceed with caution

The NPR category is where English-language advice is most often oversimplified. The rule in the Income Tax Act is that an NPR is taxed on all income other than foreign-source income, plus foreign-source income that is paid in Japan or remitted to Japan. Money you bring in from abroad can be treated as a remittance of foreign-source income under deeming rules, even if you think of it as savings.

Two points follow for crypto. First, if you sell on a Japanese exchange, the yen proceeds are paid in Japan, so even if the gain were foreign-source it would be taxable. Second, and harder: it is far from clear that crypto gains are foreign-source at all. Japanese law lists the kinds of capital gains that count as foreign-source fairly narrowly, mirroring the list of Japan-source gains that the NTA cites in its crypto FAQ (FAQ 1-8), and crypto does not obviously fit any category. Income that is not foreign-source is taxable for an NPR whether or not it is remitted. An NTA research paper on the 2014 changes to the sourcing rules notes that income not clearly defined as foreign-source can fall into the NPR's taxable base.

There is one more signal. For the foreign-assets report, the NTA treats crypto as located where its owner lives, so a resident's coins on a foreign exchange are not foreign assets for that form (FAQ 7-3). That is a reporting rule, not an income-sourcing rule, but it shows the NTA does not treat crypto on an offshore platform as being "abroad" simply because the platform is.

Don't build a plan on the remittance basis without written advice

We could not find NTA guidance that directly addresses whether an NPR's gains on offshore crypto are foreign-source. Treat "I'm an NPR, so offshore crypto gains are tax-free unless I bring the money in" as unsafe until a Japanese tax accountant (税理士) has confirmed it for your facts, in writing. The cost of being wrong is back tax plus penalties.

¥100mCovered assets needed before the exit tax appliesNTA Tax Answer No.1478

5 of 10Years resident in Japan before the exit tax can applyNTA No.1478

0Crypto entries on the exit tax list of covered assetsNTA No.1478, as of April 2026

3 monthsTo update your CARF tax residence after a moveNTA CARF leaflet

Leaving Japan: is there an exit tax on crypto?

Japan does have an exit tax, introduced in July 2015. According to NTA Tax Answer No.1478, it applies when someone leaves Japan while holding ¥100 million or more of covered assets, and has had a domicile or residence in Japan for more than five of the previous ten years. Those assets are treated as sold on the day of departure, and income tax is due on the unrealised gain. Tax can be deferred for five years (extendable to ten) if you appoint a tax agent and provide collateral, and the tax can be cancelled if you come back within that period still holding the assets.

The covered assets are securities (shares, investment trusts and so on), silent partnership interests, open margin and when-issued trades, and open derivative positions. Crypto is not on the list. Spot crypto is not deemed sold when you leave, and it does not count towards the ¥100 million threshold.

Three caveats are worth taking seriously:

Derivatives. The list includes open derivative positions, and crypto derivatives are regulated as derivatives under Japan's financial instruments law. If you hold open crypto derivative or margin positions when you leave and the total is large, ask a professional whether they count.
Crypto funds. If crypto investment trusts or ETFs become available in Japan, as the FY2026 reform anticipates, they would be securities and covered like any other fund.
The rules can change. Crypto is moving under the Financial Instruments and Exchange Act. Tax advisers have flagged the exit tax as a point to watch once that happens. The FY2026 tax reform outline contains no change on this, but check the current list before a large move.

Tax in the year you leave

Until the day you leave, you are still resident, so any crypto you sell before departure is taxed in Japan under the normal rules: miscellaneous income at progressive rates of up to about 55%, as explained in our Japan crypto tax guide. If you need to file a return for that year (for example because you sold crypto at a profit above the ¥200,000 threshold for employees), the timing depends on whether you appoint a tax agent (nozei kanrinin):

Without a tax agent, you must file a departure return (準確定申告) covering January 1 to your departure date, and pay, by the time you leave.
With a tax agent registered with your tax office before you leave, the return for that year is filed by the normal deadline in March of the following year.

One timely detail for 2026: the higher basic deduction introduced by the FY2026 reform takes legal effect on December 1, 2026. The NTA says departure returns for 2026 filed on or before November 30, 2026 use the old amount, and the higher deduction can then be claimed through a request for correction from December 1.

Resident tax works on a January 1 snapshot. Municipalities charge resident tax for a fiscal year to people who have an address there on January 1, based on the previous year's income. If you have genuinely moved abroad and filed your moving-out notice before January 1, you are generally not charged resident tax the following year on the income of the year you left, as city guidance such as Edogawa Ward's explains. Resident tax already assessed for the current year is still due, so pay it off or have your tax agent handle it. A short trip spanning January 1 does not count.

After you leave. Once you are a non-resident, Japan taxes only Japan-source income. The NTA crypto FAQ says directly that a non-resident who sells crypto held at a Japanese exchange does not need to file in Japan, because that income is not on the list of Japan-source capital gains (FAQ 1-8). That list does include sales of assets located in Japan made while a non-resident is staying in Japan, so selling during a return visit is less clear-cut. And your new country of residence will have its own rules on when and how it taxes the gain.

Sell before you leave

Taxed in Japan as a resident, at up to about 55% depending on your total income for the year. Clean break: no account access problems later, and you arrive in your new country with cash and a clear record.

Sell after you leave

Generally not taxed in Japan, per FAQ 1-8, but taxed under your new country's rules, which may use a different cost basis. You need an exchange that will serve you as a non-resident, and the coins must get there.

Neither option is automatically better; it depends on the size of the gain, your Japanese bracket in the year of departure, and the tax regime you are moving to. Japan's 20% flat rate will not arrive before 2028 (see Japan's 20% crypto tax reform), so for most people leaving in 2026 or 2027 it is not part of the calculation.

What happens to your Japanese exchange account

Japanese exchanges are licensed and built to serve people who live in Japan, and you should not assume you can keep using one after you move. One example from the exchanges' own help pages: Coincheck says its iOS and Android apps are offered only in Japan and cannot be newly downloaded or updated abroad, that its service cannot be used while you are staying in countries it does not serve, and that trading may be restricted after travel to such a country until it has confirmed your situation. Other exchanges have their own rules; read your exchange's terms on changes of address before you go. Do not try to get around these rules with a VPN or an old address: that breaches the terms and can get an account frozen.

Practical points to plan around:

Yen withdrawals need a Japanese bank account in your name. If you close your bank account first, you may have no way to get yen out. Sell and withdraw (see how to cash out crypto in Japan) before closing it.
Moving coins out takes time. Under the Travel Rule, Japanese exchanges collect recipient information and may refuse transfers to some foreign platforms or unhosted wallets. In August 2026 the FSA and the National Police Agency also asked the industry to consider anti-fraud steps such as pre-registered withdrawal addresses with a waiting period, so allow for delays. Check which destinations your exchange allows (our wallets guide covers this) and do a small test transfer weeks before you fly.
Download your records. Save every annual transaction report (年間取引報告書) and the full CSV history before the account is closed. Your new tax authority may want your cost basis, and Japan's can ask about past years.
Update your CARF self-certification. Since January 1, 2026, Japanese exchanges hold a self-certification of your tax residence. If your tax residence changes, the NTA says you must submit an updated one within three months of the change.

CARF: your tax residence follows you

From 2027, Japanese exchanges will report the crypto transactions of customers who are tax resident in specified foreign jurisdictions to the NTA by April 30 each year, and the NTA will pass that data to those countries under tax treaties. The flow runs both ways: Japan receives data on its residents' accounts abroad. In practice, the tax authorities on both sides of your move are likely to see what you held and traded.

The self-certification asks for every jurisdiction where you are tax resident and the tax identification number for each one other than Japan. The NTA's leaflet counts taxation based on nationality as a ground for residence, which is relevant to US citizens. If you live in Japan, you enter "Japan", and the NTA says My Number is not needed on this form.

US citizens and green-card holders: two sets of rules

US citizens and green-card holders are taxed by the US on worldwide income wherever they live, so a US person living in Japan deals with both systems at once. The details belong with a US-qualified preparer, but the main points are these. The IRS treats digital assets as property and asks about them on Form 1040. Foreign tax credits and the US–Japan tax treaty generally prevent full double taxation, but the two systems measure gains differently: Japan averages your cost, while US rules let you identify specific lots, so the same sale can show a different gain in each country and in a different year.

Reporting is the other trap. The FBAR (FinCEN Form 114) covers foreign financial accounts whose combined value exceeds $10,000 at any time in the year. FinCEN said in Notice 2020-2 that an account holding only virtual currency is not currently reportable on the FBAR, while signalling that it intends to change that; an exchange account that also holds yen can be reportable. FATCA reporting on Form 8938 has separate, higher thresholds for people living abroad. Check the current position on the IRS FBAR page and the IRS comparison of Form 8938 and FBAR. Some financial institutions limit services to US persons because of FATCA reporting, so confirm your exchange's policy before you rely on it, and expect to list the US and your SSN on the CARF form.

Checklist before you leave Japan

Work out your Japanese tax residency category and the date you will stop being resident
Decide, with advice if the amounts are large, whether to sell before or after departure
Check the exit tax position if you hold ¥100m or more in securities or derivative positions, including any crypto derivatives
Either file a departure return before you leave, or register a tax agent (nozei kanrinin) with your tax office
Settle the current year's resident tax or arrange for your tax agent to pay it
Read your exchange's terms on moving abroad; sell, withdraw yen or move coins while you still have access
Keep your Japanese bank account open until every yen withdrawal has landed
Download all annual transaction reports and CSV histories
Submit an updated CARF self-certification within three months of your tax residence changing
US persons: review FBAR and Form 8938 obligations for the year of the move

Moving to Japan instead? Reverse the list: export your records before you arrive, keep proof of your original cost, and read our guides to opening an account as a foreigner and FSA-registered exchanges. Avoid platforms that serve Japanese residents without registration; our crypto scams guide explains why that matters.

Moving to or leaving Japan with crypto: FAQ

Does Japan have an exit tax on crypto?

Not under the current rules. Japan's exit tax (国外転出時課税) treats securities, silent partnership interests and open margin and derivative positions as sold when someone with ¥100 million or more of those assets leaves after more than five of the last ten years in Japan. Crypto is not on the NTA's list of covered assets, but the rules could change after crypto moves under the Financial Instruments and Exchange Act.

Do I pay Japanese tax if I sell crypto after leaving Japan?

Generally not, once you are a non-resident. The NTA crypto FAQ says a non-resident who sells crypto held at a Japanese exchange does not need to file in Japan, because the income is not Japan-source. The exception list includes selling assets located in Japan while you are staying in Japan, so selling during a visit is less clear. Your new country may tax the gain.

Are non-permanent residents taxed on crypto gains in Japan?

Often yes. Non-permanent residents are taxed on all income except foreign-source income, and on foreign-source income paid in Japan or remitted here. Proceeds from a Japanese exchange are paid in Japan. Whether gains on an offshore exchange count as foreign-source is not settled in NTA guidance we could find, so get written advice before relying on the remittance basis.

Does my cost basis reset to market value when I move to Japan?

We found no such rule. The NTA defines the cost of purchased crypto as what you paid for it, plus fees. Gains that built up before you arrived can therefore be taxed in Japan when you sell as a resident, so bring complete purchase records with you.

Can I keep my Japanese crypto exchange account after moving abroad?

Do not count on it. Japanese exchanges are set up for Japan residents. Coincheck, for example, says its app cannot be downloaded or updated outside Japan and that it cannot be used while you stay in countries where it does not offer service. Check your exchange’s terms and plan to sell or withdraw before you go.

Do I owe resident tax after leaving Japan?

Resident tax for a fiscal year is charged to people with an address in a municipality on January 1, based on the previous year’s income. If you have moved abroad before January 1, you are generally not charged the next year’s resident tax, though tax already assessed for the current year is still due. Short trips abroad do not count as moving.

This page is general information based on NTA publications and is not tax or legal advice. Cross-border situations depend heavily on individual facts; speak to a Japanese tax accountant, and to an adviser in your other country, before acting.

Sources

Japan crypto tax guide

How miscellaneous income tax works, with yen examples

The 20% crypto tax reform

What changes, for whom, and when it can start

Tokyo shopping street at night lined with neon signs

Crypto for foreigners in Japan

Visas, residence cards, US persons and tourists

Cash out crypto to yen

Routes by where your coins sit, fees and tax timing

Crypto wallets in Japan

Choosing a wallet your exchange will actually send to

Ink-style samurai illustration in front of a red sun

Offshore exchanges and Japan

Who left, who was warned, how to move funds

CryptoJapan editorial team
Written and checked by our editors against the FSA register, official exchange fee pages and National Tax Agency guidance. Nothing here is investment advice. How we review