Compare countries & regions
Japan vs United Kingdom
Japan and United Kingdom side by side — economy, tax, company setup, visas, housing and study, from official and open data.
Economy & society
| Metric | Japan | United Kingdom |
|---|---|---|
| Population (2024) | 123.98M | 69.23M |
| GDP (current US$) (2024) | $4.03T | $3.69T |
| GDP per capita (2024) | $32,487 | $53,246 |
| GDP growth (annual) (2024) | 0.1% | 1.1% |
| Inflation (annual) (2024) | 2.7% | 3.3% |
| Unemployment (2025) | 2.5% | 4.7% |
| FDI net inflows (2024) | $16.16B | -$12.96B |
Business & tax
| Metric | Japan | United Kingdom |
|---|---|---|
| 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% | 25% |
| 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 | 45% |
| 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% | 24% |
| 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% | 20% |
| 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. | — | $0 |
| Registration fee Government registration fee only, converted to USD. Notary, agent and filing services are not included. | — | $15 |
| Processing days Typical registry processing time once a complete filing is accepted — not the end-to-end setup time. | — | 1 |
| 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 | No |
| 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
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.
Read more →Companies in the UK register with Companies House, usually as a private limited company (Ltd). Registration is quick and online; you then register for Corporation Tax with HMRC and, where applicable, VAT and PAYE.
Read more →Business Banking
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.
Read more →The UK has established high-street banks and a strong digital-bank sector (Monzo, Starling, Revolut). Newcomers can open accounts, though proof of a UK address can be a hurdle; digital banks are often easier initially. The FCA and PRA regulate banks.
Read more →Investment
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.
Read more →The UK is open to foreign investment, promoted by the Office for Investment (Department for Business and Trade). Most sectors need no approval, but the National Security and Investment Act lets the government screen deals in sensitive areas. There are no exchange controls, so profits repatriate freely; incentives include R&D reliefs and freeports.
Read more →Tax System
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.
Read more →The UK taxes income (Income Tax and National Insurance) and levies VAT on most goods and services, administered by HMRC. UK tax residents are generally taxed on worldwide income; the tax year runs 6 April to 5 April.
Read more →Work Visa
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.
Read more →Most workers use the Skilled Worker visa, which requires a job offer from a Home Office-licensed sponsor, a role at the required skill level, and a salary at or above the applicable threshold. The visa is points-based and administered by UK Visas and Immigration.
Read more →Student Visa
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.
Read more →The UK Student visa (formerly Tier 4) lets you study at a licensed student sponsor. Once you accept an unconditional offer your university issues a Confirmation of Acceptance for Studies (CAS), valid for six months from issue. You apply online on GOV.UK with financial evidence and usually an approved English test, and pay the visa fee plus the Immigration Health Surcharge, which gives NHS access. You can apply up to six months before the course starts.
Read more →Tourist Visa
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.
Read more →Most short visits to the UK use the Standard Visitor route, usually up to 6 months. Visa-exempt nationals must hold an Electronic Travel Authorisation (ETA) before travelling; visa nationals apply for a Standard Visitor visa online in advance. Visitors cannot work or claim public funds.
Read more →Permanent Residency
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.
Read more →The UK equivalent of permanent residence is Indefinite Leave to Remain (ILR), usually available after five years on a qualifying visa (e.g. Skilled Worker), meeting residence, English and Life in the UK test requirements. ILR allows living and working without time limit.
Read more →Citizenship
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.
Read more →British citizenship by naturalization usually requires holding ILR (settlement) for at least 12 months, five years' lawful UK residence, good character, and passing the Life in the UK test and English requirement. The UK allows dual citizenship.
Read more →Employment & Labor
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.
Read more →UK employment gives workers and employees statutory rights — the National Minimum/Living Wage, 5.6 weeks' paid holiday, and protection from unfair dismissal after two years — enforced via employment tribunals, with Acas providing guidance. You should get a written statement of terms from day one.
Read more →Import & Export
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.
Read more →UK traders move goods using an EORI number and declare them to HMRC. You classify goods by commodity code to find the duty and VAT, check any licences or controls, and submit customs declarations (often via an agent) through the Customs Declaration Service. Since Brexit, EU trade also needs declarations; binding tariff rulings come from HMRC.
Read more →Trademark & IP
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.
Read more →UK trademarks are registered with the Intellectual Property Office (IPO). You search the register, file an application specifying classes, and it publishes for a two-month opposition period before registration. A UK trademark lasts 10 years and is renewable; the IPO also handles patents and registered designs, with copyright arising automatically.
Read more →Jobs
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.
Read more →The UK's official job-search service is Find a job, run by the DWP, though much hiring happens on commercial boards and company sites. For non-UK/Irish nationals the real gate is not the job board but the sponsor: most roles require a work visa with a licensed sponsor issuing a Certificate of Sponsorship, so an employer without a licence cannot hire you however good the fit. Employers must also check your right to work, and you may need to provide a share code.
Read more →Salaries
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.
Read more →The UK's wage floor is age-tiered, not a single rate: the National Living Wage applies from age 21, while the National Minimum Wage covers younger workers and apprentices — so your entitlement depends on age and apprenticeship status. Rates are updated each April, which makes the timing predictable. For official earnings data the Office for National Statistics publishes two series worth knowing apart: Average Weekly Earnings and the Annual Survey of Hours and Earnings.
Read more →Scholarships
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.
Read more →The UK's flagship international scholarships are Chevening (funded by the Foreign, Commonwealth & Development Office, for one-year master's) and the Commonwealth Scholarships (for Commonwealth-country students), alongside GREAT Scholarships and many university awards. Explore options on the Study UK / British Council site and apply by each scheme's deadline.
Read more →Study Abroad
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.
Read more →To study in the UK you apply through UCAS for undergraduate courses or directly to universities for postgraduate study. Once you accept an offer, the university issues a CAS (Confirmation of Acceptance for Studies), which you use to apply for the Student visa (paying the Immigration Health Surcharge and showing funds). Explore courses on Study UK and apply by each deadline.
Read more →Housing
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.
Read more →The UK places no restriction on foreigners buying property. In England, tenancies are open-ended assured periodic tenancies since 1 May 2026 — assured shorthold tenancies and section 21 “no-fault” eviction are abolished. Agents must run a Right to Rent check, and the tenancy deposit is capped at five weeks' rent and protected in a government scheme. Buyers use a solicitor/conveyancer, register at HM Land Registry and pay Stamp Duty Land Tax, with a 2% surcharge for non-UK residents.
Read more →Healthcare
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.
Read more →The UK's National Health Service is mostly free at the point of use for people ordinarily resident. Most visa holders staying six months or more pay the Immigration Health Surcharge with their visa application, which then lets them use the NHS on the same basis as residents. Some services still carry charges — prescriptions, dental and eye tests in England. Note that holding private insurance does not exempt you from the IHS.
Read more →Insurance
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.
Read more →In the UK, National Insurance contributions are deducted from your pay and fund the State Pension and certain benefits — so your NI record matters for what you can claim later, not just as a tax line. Private insurance (motor, home, life, travel) comes from firms regulated by the FCA for conduct and the PRA for prudential soundness. Two policies are compulsory: motor third-party insurance and employers' liability insurance. Check any firm is authorised on the FCA Register before buying.
Read more →Related comparisons
Frequently asked questions
Which has lower corporate tax, Japan or United Kingdom?
Japan — Japan 23.2%%, United Kingdom 25%%.
How do VAT rates compare in Japan and United Kingdom?
Japan 10%%, United Kingdom 20%%.
Is Japan or United Kingdom wealthier per capita?
United Kingdom — Japan $32,487, United Kingdom $53,246 (World Bank, 2024/2024).
Do Japan and United Kingdom offer a digital nomad visa?
Only Japan does.
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