What Happens When a Foreigner Dies in Japan: Inheritance, Bank Accounts & Tax (2026 Guide)

Why This Matters

Many foreign workers and families in Japan have no plan for this. When a spouse or parent dies, family members can be locked out of bank accounts during one of the most difficult times of their lives.

Japan's rules are different from most countries. This guide explains what actually happens, step by step.

Which Country's Law Applies? (The #1 Confusion Point)

If the deceased is a foreign national, their home country's law governs who inherits — not Japanese civil law. Japan follows the "law of nationality" rule (Act on General Rules for Application of Laws, Art. 36).

But — Japan still taxes the inheritance based on Japanese residency rules. The governing law and the taxing authority are two completely separate things.

What this means in practice:

• Your home country's rules determine who is a legal heir and what shares they receive
• Japan's National Tax Agency still calculates and collects inheritance tax based on where the deceased lived
• A will valid in your home country still needs to be translated and certified before Japanese banks and the Legal Affairs Bureau will accept it

Consult both a home-country lawyer and a Japan-based administrative scrivener (行政書士) from day one — they handle different parts of the same process.

If Japanese Law Applies — Statutory Share Table

For Japanese nationals — or as a reference if your home country follows similar rules:

A spouse can never be fully disinherited. Japan protects spouses and children with iryūbun (違留分 — legally reserved share), even if a will says otherwise.

Iryūbun = 1/2 of the statutory share. You can claim it within 1 year of learning about the inheritance and the action that infringed on your rights.

What Happens to the Bank Account

Bank accounts freeze immediately once the bank is notified of the death.

To unfreeze the account, all heirs must submit:

The most common problem: One uncooperative or unreachable heir can delay access for months. Japan has no automatic spousal access — joint bank accounts are not legally recognized in Japan.

Inheritance Tax — Who Pays and How Much

Basic Exemption

¥30 million + ¥6 million × number of statutory heirs is exempt.

Example: Spouse + 2 children = 3 heirs → ¥48 million exempt.

If the total estate is below this amount, no inheritance tax filing is required.

Tax Rates

Above the exemption, Japan applies progressive rates up to 55% on each heir's individual share.

Key Credits

• Spousal credit: Surviving spouse pays ¥0 tax on their share up to ¥160 million (or their full statutory share, whichever is larger).
• Minor credit: Child under 18 gets a credit of ¥100,000 × (18 − their current age).
• Life insurance / retirement payout: ¥5 million × number of heirs is exempt per beneficiary type.
• Foreign tax credit: If the same assets are taxed abroad, you may offset the double taxation.

The 10-Year Worldwide Asset Trap

If the deceased lived in Japan for 10 of the past 15 years, Japan taxes worldwide assets — not just what is in Japan.

Short-term workers and students under that threshold are typically taxed only on Japan-based assets.

Filing Deadline

10 months + 1 day from the date heirs learn of the death. Miss this deadline and penalties apply.

Use our Japan Inheritance Tax Calculator to estimate your tax bill and deadline instantly.

Step-by-Step: What Heirs Should Do

1. Get the death certificate.

Register the death at city hall within 7 days. This triggers everything else.

2. Notify institutions.

Contact the bank(s), pension office, and immigration bureau (return the residence card).

3. Gather proof of heirs.

For foreigners: home-country family register or marriage/birth certificates, translated and certified for Japanese use.

4. Sign an estate division agreement.

All heirs must agree on who gets what. Required to unfreeze assets.

5. File the inheritance tax return (if estate exceeds the exemption).

Deadline: 10 months + 1 day from when heirs learned of the death.

6. Submit documents to unfreeze assets.

Take the estate division agreement and certified translations to the bank and the Legal Affairs Bureau (法務局) to transfer property titles.

FAQ

Does my home country's inheritance law apply in Japan?

Yes — if the deceased was a foreign national, home country law governs the division of assets. Japan's law still applies to the *taxation* of those assets.

What if we only have a foreign marriage certificate, not a Japanese koseki?

You need a certified translation of your home-country marriage and family registration documents. The bank and Legal Affairs Bureau will accept these — but the process takes longer. Start early.

How long does unfreezing a bank account take?

If all heirs cooperate and documents are ready: typically 2–8 weeks. If a heir is uncooperative or abroad: several months to over a year.

Do I owe tax if I inherit from a foreign relative who never lived in Japan?

Usually no — but if *you* (the heir) live in Japan and the deceased lived in Japan for 10+ of the last 15 years, Japanese inheritance tax applies to worldwide assets.

Can a will written in my home language be used in Japan?

Yes, but it must be officially translated into Japanese and authenticated. Without this, Japanese institutions will not accept it.

What happens if heirs cannot agree on the division?

The case goes to family court (家庭裁判所). A mediator tries to reach agreement; if that fails, a judge can impose a division. This typically takes 6–18 months.

Yamada Hack

File the estate division agreement and inheritance tax return together with certified translations from day one. The bank, the tax office, and the Legal Affairs Bureau all ask for the same core document set. Prepare it once as a complete package — this saves weeks of back-and-forth when dealing with three institutions simultaneously.

*Estimate your tax with our free Japan Inheritance Tax Calculator.*