1) What is freelancing?

A freelancer is an activity or contract carrier who undertakes work without belonging to a company or organization, as well as a person who undertakes work in their own hands. Examples include designers, IT professionals, accountants, etc. who can work using their skills. It is possible for foreigners to work as freelancers in Japan, but there are many points to be aware of.

Source: Weblio Dictionary "freelance"

2) What kind of Residence Status in order to work as a freelancer 

① Engineer/ Specialist in Humanities/ International Services

If you want to work in a profession that requires specialist knowledge, such as IT, engineering, interpreting, law, accountancy, etc., you will need to obtain the "Engineer/Specialist in Humanities/International Services" residence status.

For more information on the requirements for "Specialist in Humanities/International Services", please click here.

② Business Manager

This category applies to activities in which a foreign national establishes a business in Japan or participates in the management or administration of an existing business. As a prerequisite, the foreigner must substantially participate in the management or administration of the business.

The continuity, size and fulfillment of obligations of the business must be clarified in detail.

Please refer to the documents and other information published by the Immigration Services Agency of Japan.

Clarification and Explanation of the Residence Status of "Business Manager”

Applicable Activities and Landing Permit Criteria

Business Manager Residence Status

These two are the main residence statuses for foreigners working as freelancers, but those working as athletes or artists will receive the following residence statuses.

③ Artist

Those who engage in music, art, literature or other artistic activities that generate income will be granted 'artist' residence status. Examples include composers, painters, writers, etc.

Please click here for the documents required to apply for this residence status.

④ Entertainer

Activities that fall under this status are those related to entertainment such as theater plays, shows, musical performances, sports, etc. or other entertainment activities (excluding the activities listed in the Management and Administration section of Table 1-2 of the Immigration Control and Refugee Recognition Act). The above is the list of activities that fall under this category.

Examples include actors, singers, dancers, and professional athletes.

The documents to be submitted vary depending on the activity in Japan, so please check here.

3) Criteria for permission

The requirements for obtaining residency status are the same as usual, but the criteria for approval are stricter for freelancers.

Income

In order to obtain a work visa, it is important to be able to earn a stable living independently. If you work for a company, your basic monthly salary is fixed, but freelancers do not have a basic salary, so the assessment process is more difficult. By signing contracts with several projects or clients, you can increase the stability of your income.

Length of contract

It is preferable to have a stable business partner with a contract period of at least one year. If the contract is for a few months, it may not be considered stable and you may not be approved. However, even if the contract is for a few months, approval may be granted if the contract can be renewed on an ongoing basis or if the contract can be concluded on a regular basis. In such cases, documentation of the renewal performance and the conditions for renewal with the contracting authority will be required.

Work

In principle, you can only work in a job that you are allowed to do under your residence status. If you want to work outside the scope of your residence status, you must apply for a "permit to engage in an activity other than that permitted under the residence status". 

4) Things to remember 

Final income tax return

A tax return is "a procedure whereby you calculate for yourself the amount of income earned during the year and the amount of income tax due on that income, and submit a tax return to the tax office by the filing deadline to settle any excess or deficiency with respect to income tax withheld at source, etc.". Freelancers must file their own tax returns. Tax returns are accepted from February 16th to March 15h of the following year. If March 15th falls on a Saturday, Sunday or public holiday, the deadline is the following weekday. If you forget to file your tax return and do not pay the tax, your extension of stay will be disadvantageous. The tax office will not inform you of the payment, so be careful not to forget. There is a manual for foreigners on the website of the National Tax Agency. Please refer to it.

 Manual for preparing tax returns for foreigners (simplified version) The edition is for the year 2022. 

Social Insurance

Even freelancers are required to join the National Pension Plan and National Health Insurance.

The National Pension Plan applies to all persons between the ages of 20 and 60 who are resident in Japan. Therefore, even if you are a foreigner, you must join the National Pension Plan if you have a residence in Japan and a residence card. And those who are not enrolled in the Health Insurance Plan for Private Sector Employees and their Family Members are required to enroll in the National Health Insurance Plan. However, only those staying for three months or more are eligible. These procedures must be carried out at the National Pensions and National Health Insurance counter at your local municipal office.

Information on joining the social security system is also available on the Japan Pension Service website.

Please also read the foreign language version of this guide.

➡Enrollment in Social Insurance System