Foreign business owners are scrambling to raise capital to stay in Japan(tokyopaladin.substack.com) |
Foreign business owners are scrambling to raise capital to stay in Japan(tokyopaladin.substack.com) |
People in China realized they could just buy/lease a guesthouse in Osaka / any tourist hotspot, and rent it out on Airbnb. Then they become a "business manager" and get a Japanese resident visa within 3 months. All you needed is to invest 5million yen, which is like 31k USD, which isn't much. People wrote entire online guides on how to do this. They even had brokers/agents helping people with the process [0].
Approximately half of all business manager visas went to Chinese nationals. In Osaka, 41% of all short-term rentals were operated by Chinese individuals [1]. The visa practically turned into an Airbnb host visa.
It's not surprising at all that Japan made the rules stricter.
[0] https://www.japantimes.co.jp/news/2026/06/05/japan/immigrati...
That depends of what you're hoping to prevent.
If you want to filter out people who can't sustain themselves, petty crime or the like, it works. But it can open the door to a lot of unwanted effects.
A foreign national that just extracts capital by capturing real state and collecting rent is a great example, this person is a large net loss for the country.
Is there something illegitimate in doing an activity that yield profit when the national is Chinese ? Or when it's a short term let ? Or when it is something that doesn't directly contributed to innovation benefiting the nation ?
But of course if we limit our perspective to an economic one, then it seems like a wise and sound approach to "escaping the hamster wheel" for the average Chinese person, easy money right?. I think people in Japan probably don't have that perspective though, but instead look at the tail-effects of allowing that sort of behavior. That's why they changed the rules probably.
Rent would cost ¥60,000–120,000/month, they would list it on Airbnb for ¥20,000/night, then assuming 50% occupancy the return is ~¥200,000/month.
It was very profitable. The payback period for the ¥5 million was 1.5 - 2 years.
https://www.youtube.com/watch?v=UGAmKqTWjxU
https://www.youtube.com/watch?v=dXLOsYTfl7k
(These two videos are quite recent at the time of writing this here.)
Don't get fooled by the deliberate (but misleading) title(s). This is a narration of more and more restrictions coming. So the article here also taps into this 1:1.
In some ways it reminds me of Nigel Farage in the UK, though in Japan it is not quite as tied to an individual person.
It shouldn’t surprise anyone that the government has a problem with this practice. The problem is trying to create a system of requirements that is both feasible to put on paper and also testable. When the issue was raised, the income requirements were changed as an immediate reaction, but the ISA has broad authority to grant or deny based on many circumstances.
Put differently, acts like this were already illegal, but difficult for the ISA to catch. So they changed the base requirements which are theoretically much easier to catch than the actual illegal behavior.
From Asterix & Cleopatra (1965): https://pbs.twimg.com/media/CSL0D_ZUAAAvbeM.jpg
Relevant as ever.
While there are usually political and economic factors that contribute to these decisions, I've been living overseas for almost two decades and have noticed that rampant abuse is now almost everywhere you look in any country that is interesting to foreigners. A few years ago, I was sitting at busy bar near the beach in Bali and a couple of guys were loudly discussing a scheme they used to get KITAS investor visas without actually putting up the required capital.
This is just the beginning of this type of thing methinks.
He got called out several times about his stories so I wouldn't be surprised if he's making stuff up again.
In a country with a population of 123 million, that's a non issue just for pleasing far right Nippon Kaigi friendly voters.
Countries should be competing for the best immigrants, not closing their doors.
Japan is a very attractive destination for a variety of reasons (highly-developed, safe, relatively "cheap", etc.) so you have lots of people who are willing to jump through some hoops and put up some capital for a chance to live there.
I wouldn't say that the changes to the business manager visa are going to help Japan attract the "best" immigrants. They will definitely hurt some good people who are contributing to Japan. But on the whole they will probably be reasonably effective in weeding out most of the abusers. Not all, but most.
It's a sledgehammer approach because a scalpel is very difficult to use when so many people want to live in your country.
Countries should be competing for the best immigrants, not closing their doors.
The elites aren't going to have a house next to immigrants. They don't feel the effects in their castle.
Anyways, this change is to target only the best immigrants. There are still ways for them to immigrate to Japan. This change just closes the loophole for lower quality immigrants.
Anyone who is at the top of the ladder (educated, wealthy) will move wherever is most desirable, and thats pretty much only the US. You can't fake it with incentives, America doesn't have to offer immigrants anything it simply exists as the global centre for tech, finance, medical etc. - nobody is lining up to move to China, India or Germany.
Anyone who is at the bottom of the ladder is, as Bernie Sanders put it, a pawn in the Koch brothers conspiracy to reduce wages. These countries don't care about quality they just want to jack up housing demand and bottom out wages because thats great for the asset class and big business (until they automate and ditch all these people)
The immigration narrative is BS. The idea that we're aging out so must desperately bring in more UberEats riders is nuts. Nobody in my country can afford to be a nurse - I know an eye doctor at a major London clinic who is leaving this country because after 20 years working for the NHS she simply is not paid enough to live.
We're absolutely obsessed with immigration and all we are doing is lining the pockets of corporates, brain-draining countries that desperately need skilled people and blurring the lines of social responsibility in a globalist economy.
Recent example in Vietnam: https://www.instagram.com/reels/DY_-NcwDTaJ/
A lot of trashy tourists are moving from Bali over to Vietnam. I few sorry for the locals. Yes, they'll make a few extra bucks a week from more tourists but at the cost of seeing your society get destroyed slowly.
Dear Vietnam, please do not try to become the next Thailand and Bali for tourism. Do not welcome sex tourists, criminals, crypto bros, begpackers. Don't sell your soul for a few extra dollars.
To go to the USofA or to, say, Australia?
Which they were almost certainly divvying up. A bunch of people invest $32k each. Some management company buys the home, pays them all a cut of airBNB proceeds, etc. You don't "do" anything beyond put up $32k for your $31k piece of paper.
If I had to guess, I'd say probably not in most cases.
A lot of Chinese are cash rich (perhaps not on average but with 1.3 billion people the absolute number is large compared to other countries) and want to invest abroad, and are buying properties all over the place.
Another pice of evidence is the huge number of Chinese students in UK universities (from my experience) although the tuition fee alone is about £35k ($46k) a year.
Even to their home country.