Japan admin checklist before your working holiday: pension, health insurance, and tax

For Japanese residents heading to Australia, New Zealand, Canada, or another working holiday destination, preparation goes well beyond booking flights and getting a visa. National pension, health insurance, resident tax, and Japanese bank accounts all have rules that change the moment you become a non-resident. Getting the sequence right before you leave can save real money and prevent awkward situations — an unexpected tax bill when you return, or a frozen bank account while you're thousands of kilometres away. This guide focuses on trips of one year or longer. Rules can vary slightly by municipality, so confirm the details with your local city or ward office before departure.

Kaigai tenshutsu-todoke: the moving-abroad notification

The 海外転出届 (kaigai tenshutsu-todoke) is a notification filed at your local city or ward office when you plan to live abroad for a year or more. You can submit it from 14 days before your departure date up to and including the day you leave; some municipalities also accept it by post. Once filed, your resident registration (住民票) is removed and you become a legal non-resident.

For a short trip under a year, many people skip this step. For a working holiday of 12 months or longer, filing is usually worthwhile: national health insurance contributions stop, national pension contributions become voluntary rather than mandatory, and future resident tax drops to zero (details below). Your My Number card (マイナンバーカード) remains valid through its expiry date, but you will need to complete a face-update procedure at the office when you file.

• When to file: from 14 days before departure up to departure day (postal submission available in some municipalities)
• Bring: a photo ID such as your My Number card or passport, plus the notification form (available at the counter)
• A representative can file on your behalf with a power of attorney (委任状)
• On return: re-register your address (転入届) within 14 days of moving back in

National pension: pay voluntarily, or use the kara-kikan credit?

Filing the moving-abroad notification removes you from mandatory national pension (国民年金) enrollment. You will not be penalised for not paying while overseas. However, the choice you make now affects your future pension amount. There are two paths.

Option 1 — voluntary enrollment (在外任意加入): Japanese nationals aged 20–64 who are not in an employer pension scheme can continue contributing voluntarily. Enroll at the national pension counter of your city office or at the Japan Pension Service office before you leave. The 2026 fiscal year premium is ¥17,920 per month (reviewed annually). Payments are made through a domestic representative — typically a family member — via bank transfer from a Japanese account. This option makes sense if you want to reach the full 40-year contribution period or increase your eventual monthly benefit.

Option 2 — use the kara-kikan credit (合算対象期間): Periods spent living abroad without voluntary enrollment count as 合算対象期間 (also called カラ期間, literally 'empty periods'). These periods count toward the 10-year eligibility threshold needed to receive any old-age pension at all, but they do not add to your monthly benefit amount. So if you have five years of contributions in Japan already and spend five or more years abroad, you will meet the 10-year eligibility threshold without paying a yen while away. If your priority is simply qualifying for a pension rather than maximising the amount, not enrolling is a rational choice.

• Where to enroll: national pension counter at your city office or Japan Pension Service office, before departure
• Monthly premium: ¥17,920 in FY2026 (revised each fiscal year)
• Payment method: bank transfer via a domestic representative (family member or other contact in Japan)
• Kara-kikan: counts toward the 10-year eligibility threshold but does not increase your eventual benefit amount
• Employees in a company pension (厚生年金) are not eligible for voluntary enrollment

National health insurance: coverage ends on departure

Filing the moving-abroad notification terminates your national health insurance (国民健康保険) membership immediately. You will need to return your insurance card (保険証) to the municipal office — the exact procedure varies by municipality. Any medical appointments you have been putting off are best handled before you file.

Japan's national health insurance does not cover treatment abroad. For your working holiday, you will need to arrange separate travel or working holiday insurance. Many destination countries strongly recommend or require health coverage as a condition of the visa. Going without adequate insurance and needing hospital treatment abroad can result in bills of several hundred thousand yen or more. Review your coverage carefully before leaving. Your own withdrawal from national health insurance has no effect on family members who remain in Japan — their coverage continues under their own enrollment.

• National health insurance ends when your moving-abroad notification is processed
• Return your insurance card to the municipal office (procedures vary by municipality)
• Arrange working holiday / travel insurance before departure — do not leave this gap
• On return: re-enroll in national health insurance (or join an employer scheme) after re-registering your address

Resident tax: the January 1st rule matters

Resident tax (住民税) in Japan is assessed based on who has a registered address on January 1st of each year. If you are in Japan — even with a one-way ticket booked for January 2nd — you owe that year's full resident tax, calculated on the previous year's income and billed from June onwards. Leaving in March does not reduce the amount.

If you want to avoid resident tax for the following year, the simplest approach is to file your moving-abroad notification and leave on or before December 31st. With no resident registration on January 1st, no assessment is raised for that year. If you have unpaid resident tax when you leave, you must either pay it in full before departure or appoint a tax agent (納税管理人) — typically a family member — to handle payments on your behalf. The appointment form is submitted to your municipal office. Failure to appoint an agent and leaving outstanding tax can result in late payment penalties.

• January 1st rule: resident tax for the year is determined by whether you have a registered address on January 1st
• Leaving on or before December 31st means no resident tax assessment for the following year
• Outstanding tax: pay in full before leaving, or appoint a tax agent (納税管理人) to handle it
• Tax may be collected in instalments — if on employer withholding, check whether a lump-sum clearance is required

Bank and investment accounts: planning for non-resident status

Becoming a non-resident changes your relationship with Japanese financial institutions. Most online banks explicitly prohibit use by non-residents; continuing to use the account without disclosure can result in sudden freezing. Check each institution's terms before you leave.

The major city banks (Mitsubishi UFJ, Sumitomo Mitsui, Mizuho) generally have a non-resident handling process: visit a branch before departure, inform them you are moving abroad, and they can reclassify the account. Investment accounts are a separate issue — securities law restricts non-residents from trading Japanese stocks, and most brokerages will ask you to stop trading or close the account. Deal with any positions you want to liquidate before you leave. For practical ongoing needs — receiving tax refunds, paying resident tax through an agent, or accepting transfers from abroad — it is common to ask a family member to manage a Japanese account on your behalf. Having a backup international transfer method is important.

• Online banks mostly prohibit non-resident use — check terms and act before departure to avoid account freezes
• Major city banks can often reclassify accounts for non-residents with an in-branch procedure beforehand
• Investment accounts: most brokerages require you to stop trading or close the account once you become a non-resident
• Family account management: a common solution for receiving domestic transfers and paying taxes while abroad
• Arrange a backup international transfer method before leaving Japan

How Tern helps

Tern is a multi-currency account you can open from your phone before you board the flight — passport and working holiday visa approval are all you need (pre-launch registration is open now). Your account details are ready before you land, so you can share them with an employer from day one without waiting for a local bank account. Top up from Japanese yen at the mid-market rate with no hidden exchange margin, and use your card at overseas ATMs with no withdrawal fees. As Japan-side bank account access gets complicated for non-residents, Tern gives you a straightforward backup for moving money between Japan and your destination country.