Compare countries & regions

Canada vs Japan

Canada and Japan side by side — economy, tax, company setup, visas, housing and study, from official and open data.

Economy & society

Metric Canada Japan
Population (2024) 41.29M 123.98M
GDP (current US$) (2024) $2.24T $4.03T
GDP per capita (2024) $54,340 $32,487
GDP growth (annual) (2024) 1.6% 0.1%
Inflation (annual) (2024) 2.4% 2.7%
Unemployment (2025) 6.9% 2.5%
FDI net inflows (2024) $63.05B $16.16B

Business & tax

Metric Canada Japan
Corporate tax General national corporate income tax rate. Sub-national tax is excluded and shown separately where it applies — a cell reading "15.825% +7–21% municipal" means the national rate plus a local business tax. "on trading income" and "on distributed profit" mark countries whose headline rate does not reach all profit. 15% 23.2%
Top income tax Top marginal rate on employment income, NATIONAL layer only — that is what makes the column comparable. Where a sub-national layer applies it is added to the cell rather than folded into the number, so "20% +29–35% municipal" is Sweden's national rate plus its municipal one. Social-security contributions are excluded throughout. 33% +4–21% provincial 45.945% +10% local
Capital gains Default rate on long-term gains from listed securities, for an individual. Varies by asset, holding period and residency. Where one percentage cannot state the answer the cell says so instead: "effective" = a fixed share of the gain is taxed as ordinary income; "on deemed return" = the tax falls on a notional return, not on realised gains; "as income" = there is no separate capital-gains tax; "Varies" = no single general rate; "No general CGT" = individuals are not taxed on capital gains, though gains that are trading in nature and gains realised in a business still can be. 16.5% effective 20.315%
VAT / GST Standard statutory rate. Where one percentage cannot state it the cell says so: "effective" = the statutory rate applies to a reduced tax base; "temporary" = a time-limited rate charged instead of the statutory one, with its end date; "by supply" / "by state" = a band structure with no single standard rate; "No VAT or GST" = the tax does not exist there, which is not a 0% rate. Reduced, zero and exempt categories are not shown. 5% 10%
Digital nomad visa Whether a dedicated digital-nomad or remote-work visa exists. A country without one may still allow remote work on another status. No Yes
DNV income req. (mo) Minimum income the programme requires, converted to USD. Thresholds are set in local currency and move with it. $8,333

Figures are headline national values gathered for comparison, not tax or legal advice. Definitions differ between countries — read each row's basis before comparing, and verify against the official authority before acting.

Topic by topic

Company Registration

Canada

You can incorporate federally (Corporations Canada) or provincially; many small businesses also register as a sole proprietorship or partnership. Incorporation is online, and you then register for a Business Number (BN) with the Canada Revenue Agency.

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Japan

Foreigners commonly set up a Kabushiki Kaisha (KK) or the simpler Godo Kaisha (GK). Formation involves preparing articles (notarised for a KK), depositing capital and registering with the Legal Affairs Bureau, followed by tax and social-insurance filings.

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Business Banking

Canada

Canada's banking is led by a few large national banks. Newcomers can open accounts — often before arrival — usually needing ID and sometimes proof of status. Newcomer banking packages are common, and banks are overseen federally.

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Japan

Japan's banking mixes megabanks, regional banks and Japan Post Bank, and cash is still widely used. Foreigners can open accounts, usually needing a residence card, a Japanese address and often a phone number; some banks require a few months of residence.

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Investment

Canada

Canada welcomes foreign investment through Invest in Canada, but significant acquisitions are reviewed for 'net benefit' and national security under the Investment Canada Act. There are no exchange controls, so capital and profits move freely; incentives include the SR&ED tax credit and provincial programs.

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Japan

Japan promotes inward investment through JETRO, with generally free capital movement. Investments in designated sensitive sectors need prior notification under the Foreign Exchange and Foreign Trade Act (FEFTA); incentives include subsidies, special zones and support for R&D and regional projects.

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Tax System

Canada

Canada taxes federal and provincial income (Canada Revenue Agency plus provincial rates) and levies GST/HST on most goods and services. Tax residents are taxed on worldwide income; your province of residence affects your combined rate.

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Japan

Japan levies national income tax (National Tax Agency) plus local inhabitant tax, and a consumption tax on most goods and services. Residents are taxed on worldwide income, with distinct rules for non-permanent residents.

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Work Visa

Canada

Most foreign workers need a work permit — either employer-specific (often requiring a Labour Market Impact Assessment, LMIA) or an open work permit. Programs like the Global Talent Stream speed up skilled hires. Permits are issued by Immigration, Refugees and Citizenship Canada (IRCC).

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Japan

Foreigners work in Japan on a status of residence matching the job — most commonly 'Engineer/Specialist in Humanities/International Services'. You usually need a Certificate of Eligibility (CoE) obtained by the employer before applying for the visa. The Immigration Services Agency oversees the system.

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Student Visa

Canada

Most international students in Canada need a study permit — not technically a visa, though a temporary resident visa or eTA may be issued for travel. You apply to IRCC with a Letter of Acceptance from a Designated Learning Institution, proof of funds and, for most applicants, a Provincial/Territorial Attestation Letter. An annual study-permit cap applies, so apply early. From 1 January 2026 master's and doctoral students at public DLIs are exempt from the PAL/TAL — confirm current IRCC rules.

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Japan

Studying in Japan requires the "Student" status of residence. The accepting school usually applies on your behalf for a Certificate of Eligibility (CoE) at a regional immigration bureau; with the CoE you apply for the visa at a Japanese embassy or consulate and receive a residence card on arrival. The CoE is valid for three months, within which you must enter Japan. Part-time work needs separate permission first.

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Tourist Visa

Canada

To visit Canada you need either a visitor visa (Temporary Resident Visa) or, if you are from a visa-exempt country flying in, an Electronic Travel Authorization (eTA). Which one applies depends on your nationality and how you travel. Visits are usually granted for up to six months, and visitor status does not allow work without separate authorisation.

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Japan

Japan grants short-term-stay status for tourism and business, typically up to 90 days. Nationals of many countries are visa-exempt for short visits; everyone else applies for a short-term-stay visa at a Japanese embassy or consulate. The Ministry of Foreign Affairs publishes which nationalities are exempt and on what conditions. Short-term visitors cannot work.

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Permanent Residency

Canada

Canadian permanent residence is commonly obtained through Express Entry (skilled workers), Provincial Nominee Programs, family sponsorship or business routes. PRs can live, work and study anywhere in Canada and must meet residency obligations.

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Japan

Japanese permanent residence usually requires around ten years of continuous residence (less for spouses of Japanese nationals or high-skilled professionals under a points system), a stable income and good conduct. The Immigration Services Agency decides.

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Citizenship

Canada

Canadian citizenship generally requires being a permanent resident physically present in Canada for 1,095 days (3 years) within the past 5 years, filing taxes, and passing a citizenship test (for applicants 18-54). Canada allows dual citizenship.

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Japan

Japanese naturalization generally requires about five years of continuous residence, good conduct, stable finances and renouncing other nationalities (Japan does not permit dual nationality for adults). The Ministry of Justice decides applications.

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Employment & Labor

Canada

Canadian employment standards are mostly provincial — each province sets minimum wage, hours, vacation and termination notice (federal rules cover federally-regulated sectors). Human-rights codes ban discrimination, and most terminations require notice or pay in lieu; disputes go to the provincial employment-standards body or labour board.

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Japan

Japanese employment is governed by the Labour Standards Act: prefectural minimum wages, capped overtime (via a '36 Agreement'), and paid annual leave from 10 days after six months. Dismissal is difficult and must be objectively reasonable; workplaces with 10+ staff need written work rules. The Labour Standards Inspection Office enforces the law.

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Import & Export

Canada

Canadian traders register a business number with an import/export (RM) account and clear goods through the Canada Border Services Agency (CBSA). You classify goods under the Customs Tariff, pay duty and GST, meet any permits, and file via the CARM portal. Advance rulings and disputes go through CBSA.

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Japan

Japanese imports and exports clear through Japan Customs via the NACCS electronic system. You classify goods by HS code to find customs duty, pay consumption tax (10%) on imports, and check whether METI licences apply under the Foreign Exchange and Foreign Trade Act. Advance rulings give classification certainty; disputes go through Customs.

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Trademark & IP

Canada

Canadian trademarks are registered with the Canadian Intellectual Property Office (CIPO). You search the register, file an application classifying goods/services under Nice, and it is examined and advertised for opposition before registration. A Canadian trademark lasts 10 years and is renewable; CIPO also grants patents and industrial designs.

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Japan

Japanese trademarks are registered with the Japan Patent Office (JPO). You search the register, file an application classifying goods/services under Nice, and the JPO substantively examines both absolute and relative grounds. After you pay the registration fee the mark registers, with a two-month post-registration opposition window. A Japanese trademark lasts 10 years and is renewable.

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Jobs

Canada

Job Bank is the Government of Canada's official national job board, and its distinguishing feature is that it is also a labour-market data source: alongside listings it shows wage ranges and job outlook by occupation and region, so you can research a role and apply for one in the same place. Foreign nationals usually need a work permit, and many employer-specific permits require an LMIA or a qualifying offer. Canadian work experience can also help some permanent-residence pathways.

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Japan

Hello Work, run by the Ministry of Health, Labour and Welfare, is Japan's official public employment service — and unusually it includes offices with desks that specialise in supporting foreign workers, so it offers in-person help rather than only listings. The rule that shapes everything else is matching: a foreign worker needs a work-related status of residence that matches the job type. Categories such as Specified Skilled Worker cover defined labour-shortage sectors.

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Salaries

Canada

Canada has two minimum-wage layers: each province and territory sets its own rate, and a separate federal minimum applies to federally-regulated industries — so which one governs depends on your sector as well as your location. Most provinces index increases to inflation, meaning rates move regularly rather than by occasional announcement. The Government's Job Bank wage tool is unusually useful because it shows minimum, median and maximum wages by occupation and region.

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Japan

Japan's minimum wage is set regionally, by prefecture — so the national figure you may see quoted is a weighted average rather than a rate anyone is actually entitled to. Check your own prefecture through the Ministry of Health, Labour and Welfare, and note that some industries have separate, higher industry-specific minimums on top. For wage data, the MHLW's Basic Survey on Wage Structure is the official source, and unusually it breaks figures down by age as well as occupation and region.

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Scholarships

Canada

Canada's funding is a mix of federal, provincial and university awards, promoted through the EduCanada portal. Graduate research funding is being consolidated under the Canada Graduate Scholarships (the older Vanier CGS is being phased into this), alongside many university-specific scholarships. Search EduCanada and each university's awards pages and apply by their deadlines.

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Japan

Japan's main government scholarship is MEXT (the Japanese Government Scholarship), available through either an embassy recommendation or a university recommendation, covering tuition, a monthly stipend and travel. JASSO also offers grants, and many universities have their own awards. Explore options on Study in Japan and apply by the relevant deadline.

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Study Abroad

Canada

To study in Canada you apply to a Designated Learning Institution (DLI); once accepted you receive a Letter of Acceptance and, in most provinces, a Provincial Attestation Letter (PAL), which you use to apply for a study permit. Recent caps mean the PAL and financial proof matter more than before. Explore EduCanada and apply by the deadline.

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Japan

To study in Japan you apply to the school, which then obtains a Certificate of Eligibility (CoE) from immigration on your behalf; with the CoE you apply for the 'Student' visa at a Japanese embassy. Undergraduate applicants often take the EJU exam. After arrival you register your residence. Explore options on Study in Japan and apply by the deadline.

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Housing

Canada

Renting in Canada is straightforward, but buying is restricted: a federal ban prohibits most non-Canadians from purchasing residential property (in force to the start of 2027, with exemptions e.g. for permanent residents and some work-permit holders). Tenancy rules and deposits are set provincially; purchases (for those exempt) use a lawyer/notary, the provincial land title office and a land transfer tax.

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Japan

Japan places no restriction on foreigners buying property — you can own land and buildings freehold with no residency requirement. Renting, however, often requires a guarantor or guarantee company plus 'key money' (reikin), a deposit (shikikin) and an agent fee. Purchases are registered (tōki) via a judicial scrivener and carry acquisition and registration taxes.

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Healthcare

Canada

Canada has publicly-funded healthcare delivered by each province and territory under the Canada Health Act. Eligible residents get medically-necessary hospital and physician care with no direct charge, and you apply for your province's health card. The gap to plan for: some provinces impose a waiting period for new residents, so private interim insurance is advisable. Prescription drugs, dental and vision are often not covered.

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Japan

Japan has universal coverage through public insurance that is mandatory for residents staying three months or more — either employees' health insurance through an employer, or National Health Insurance enrolled at your local municipal office. Patients generally pay 30% of costs, less for children and older people, with the scheme covering the rest. Premiums are income-based, so keep payments current.

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Insurance

Canada

Canada's federal social insurance is the Canada Pension Plan and Employment Insurance, both deducted from pay — CPP for pensions, EI for job-loss and parental benefits. Most private insurance is regulated provincially, while OSFI prudentially supervises federally-incorporated insurers. Auto insurance is mandatory in every province, and in some (such as BC and Saskatchewan) it is publicly provided rather than bought from a private insurer. Newcomers often add private health and dental cover, which public plans do not include.

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Japan

Beyond health cover, Japan's social insurance has two main parts: public pension — either the National Pension or the Employees' Pension, handled by the Japan Pension Service — and employment plus work-injury (rōsai) insurance for employees. Pension enrolment is mandatory for residents, not just for employees, which is the point most often missed. For drivers, compulsory automobile liability insurance (jibaiseki) is required, and private insurers are supervised by the Financial Services Agency.

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Related comparisons

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Frequently asked questions

Which has lower corporate tax, Canada or Japan?

Canada — Canada 15%%, Japan 23.2%%.

How do VAT rates compare in Canada and Japan?

Canada 5%%, Japan 10%%.

Is Canada or Japan wealthier per capita?

Canada — Canada $54,340, Japan $32,487 (World Bank, 2024/2024).

Do Canada and Japan offer a digital nomad visa?

Only Japan does.

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