Compare countries & regions

Japan vs United Arab Emirates

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

Economy & society

Metric Japan United Arab Emirates
Population (2024) 123.98M 10.99M
GDP (current US$) (2024) $4.03T $552.32B
GDP per capita (2024) $32,487 $50,274
GDP growth (annual) (2024) 0.1% 4.0%
Inflation (annual) (2024) 2.7% 1.7%
Unemployment (2025) 2.5% 2.2%
FDI net inflows (2024) $16.16B $45.64B

Business & tax

Metric Japan United Arab Emirates
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. 23.2% 9%
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. 45.945% +10% local 0%
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. 20.315% No general CGT
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. 10% 5%
Common entity The private limited-liability form most commonly used by foreign founders. Ltd
Min. capital Statutory minimum share capital, converted to USD. Often not required to be paid up in full at registration. $13,600
Registration fee Government registration fee only, converted to USD. Notary, agent and filing services are not included. $8,200
Processing days Typical registry processing time once a complete filing is accepted — not the end-to-end setup time. 14
Remote setup Whether registration can be completed without the founder being physically present. Yes
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. Yes 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 $5,000

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

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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United Arab Emirates

In the UAE you can set up on the mainland (licensed by the emirate's economic department) or in a free zone (100% foreign ownership, own registry). The choice affects ownership, office requirements and where you can trade. A trade licence defines your permitted activities.

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Business Banking

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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United Arab Emirates

The UAE has a well-developed banking sector with local and international banks and strong digital services. Residents can open accounts with an Emirates ID and residence visa; some banks offer limited non-resident accounts. The Central Bank of the UAE regulates banks.

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Investment

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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United Arab Emirates

The UAE strongly courts foreign investment: since 2021, 100% foreign ownership is allowed for most mainland activities, and free zones offer full ownership with tax and customs benefits. There are no exchange controls, so capital and profits repatriate freely; investment offices in each emirate provide incentives and support.

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Tax System

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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United Arab Emirates

The UAE has no personal income tax on salaries. A federal Corporate Tax applies to business profits above a threshold, and VAT applies to most goods and services. The Federal Tax Authority administers corporate tax and VAT.

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Work Visa

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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United Arab Emirates

Working in the UAE requires a work permit and a residence visa, typically sponsored by an employer or a free-zone company. The Ministry of Human Resources and Emiratisation (MoHRE) governs mainland employment; free zones issue their own permits. There is no personal income tax on salaries.

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Student Visa

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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United Arab Emirates

International students in the UAE generally hold a student residence visa sponsored by their licensed higher-education institution — universities, including international branch campuses, usually handle the process for you. Requirements include admission, a medical test and valid health insurance, with visas issued via ICP or GDRFA in Dubai. Worth knowing: outstanding students may instead qualify for a long-term Golden Visa.

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Tourist Visa

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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United Arab Emirates

Nationals of many countries enter the UAE visa-free or get a visa on arrival; others apply for a tourist or visit visa before travelling, typically for 30, 60 or 90 days and often extendable. Applications can go through the federal ICP, through GDRFA if you are entering via Dubai, or through an airline, hotel or licensed agent. Visit visas never permit employment.

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Permanent Residency

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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United Arab Emirates

The UAE has no traditional permanent residence, but the long-term Golden Visa (5 or 10 years, renewable) offers stable, largely self-sponsored residence for investors, entrepreneurs, skilled professionals and outstanding talents. It allows sponsoring family.

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Citizenship

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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United Arab Emirates

UAE citizenship is very rarely granted; a 2021 reform allows authorities to nominate select investors, professionals, talents and their families. Most residents remain long-term visa holders, and nominated citizens may retain their original nationality.

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Employment & Labor

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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United Arab Emirates

UAE mainland employment follows the federal labour law administered by MoHRE: written fixed-term contracts, a 48-hour week, 30 days' annual leave after a year, and an end-of-service gratuity instead of a pension for expatriates. Free zones such as DIFC and ADGM have their own employment laws; there is no personal income tax.

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Import & Export

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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United Arab Emirates

UAE imports and exports go through the Federal Customs Authority and the emirate customs bodies (e.g. Dubai Customs). You need a valid trade licence and a customs importer/client code, classify goods under the GCC Common Customs Tariff (mostly 5% duty), and pay 5% VAT on imports. Free-zone goods are treated as outside the customs territory.

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Trademark & IP

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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United Arab Emirates

UAE trademarks are registered with the Ministry of Economy and Tourism. You search the register, file an application under Nice classes, and after examination it is published (in the Trademark Bulletin and newspapers) for a 30-day opposition period. A UAE trademark lasts 10 years and is renewable; the UAE has joined the Madrid Protocol, easing international filing.

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Jobs

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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United Arab Emirates

The UAE runs two parallel employment regimes, and which one applies to you depends on where your employer is registered: mainland private-sector employment is governed by the Ministry of Human Resources and Emiratisation, while free-zone employers such as DIFC and ADGM fall under their own free-zone authority and rules. That distinction changes the rulebook behind your contract, so it is the first thing to establish about any offer. Most foreign workers need both a work permit and an employer-sponsored residence visa, jobs are advertised on company sites, free-zone portals and commercial boards, and Emiratisation targets apply to many private-sector employers.

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Salaries

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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United Arab Emirates

The UAE splits the question by nationality: there is no general statutory minimum wage for expatriate workers, whose pay is set by contract, while a minimum wage applies to Emirati nationals in the private sector from 2026. Salaries are paid through the Wage Protection System, which requires timely electronic payment — so late or cash payment is a compliance issue, not just a grievance. And because there is no personal income tax on salaries, the gross figure quoted is effectively what arrives.

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Scholarships

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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United Arab Emirates

In the UAE, funding for international students comes mainly through the universities, several of which offer generous, often fully funded scholarships — for example Khalifa University, Mohamed bin Zayed University of Artificial Intelligence (MBZUAI), NYU Abu Dhabi and Sorbonne University Abu Dhabi. Explore each university's scholarship pages, confirm coverage (tuition, stipend, housing) and apply by the deadline.

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Study Abroad

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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United Arab Emirates

To study in the UAE you apply to the university, which usually sponsors your student visa and residence; on admission the institution arranges the visa, and after arrival you complete medical checks and obtain your Emirates ID. Teaching is largely in English. Explore the university sites and apply by the deadline.

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Housing

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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United Arab Emirates

In the UAE, foreigners can buy property in designated freehold areas (widely available in Dubai and Abu Dhabi). Renting in Dubai must be registered through Ejari and follows RERA rules, with a security deposit around 5%. Purchases are registered with the land department (e.g. Dubai Land Department) and carry a transfer fee (about 4% in Dubai). There is no annual property tax.

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Healthcare

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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United Arab Emirates

Health insurance is mandatory for all UAE residents, and the enforcement mechanism is the visa itself: valid cover is required to issue or renew a residence visa, so lapsed insurance becomes an immigration problem rather than only a medical one. Employers must provide cover for employees. Regulation differs by emirate — the Dubai Health Authority, the Department of Health – Abu Dhabi, and MOHAP for the northern emirates — and since January 2025 a federal decision extended the mandate to all seven emirates.

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Insurance

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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United Arab Emirates

The UAE runs two tracks. Expatriate employees do not pay into a national social-security scheme — instead they are entitled to an end-of-service gratuity, with a newer savings-scheme option available, so that gratuity is effectively your retirement provision rather than a pension. Emiratis are covered by the GPSSA pension scheme. Beyond mandatory health insurance, motor third-party liability insurance is compulsory for vehicles, and insurers are regulated by the Central Bank of the UAE.

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Frequently asked questions

Which has lower corporate tax, Japan or United Arab Emirates?

Japan — Japan 23.2%%, United Arab Emirates 9%%.

How do VAT rates compare in Japan and United Arab Emirates?

Japan 10%%, United Arab Emirates 5%%.

Is Japan or United Arab Emirates wealthier per capita?

United Arab Emirates — Japan $32,487, United Arab Emirates $50,274 (World Bank, 2024/2024).

Do Japan and United Arab Emirates offer a digital nomad visa?

Both do.

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