How to Obtain a Business Manager Visa Through Real Estate Investment

For foreigners looking to expand their real estate investment business in Japan and live in the country, one option is to establish a company in Japan and apply for a Business Manager Visa. This visa allows foreigners to manage or operate a business in Japan, including real estate ventures. Below, we’ll look at the key requirements and considerations for obtaining this visa.

1. Requirements for Obtaining a Business Manager Visa

To obtain a Business Manager Visa, several conditions must be met. These requirements can be broken down into three key points:

• The activities in Japan must involve “business management.”

• The business must comply with all relevant laws and regulations.

• The business must be stable and sustainable.

The Activity Must Be “Business Management”

To qualify for the Business Manager Visa, the activities conducted in Japan must involve the management of a business. Simply owning real estate for speculative purposes will not meet the requirements for the visa

To be considered “business management,” the real estate must be used for income-generating purposes, such as rental properties or short-term accommodation services (like Airbnb). If you only own real estate and outsource all rental or property management to a third-party company, it may not be considered “business management,” and obtaining the visa could be difficult.

The Business Must Comply with Laws and Regulations

The business must operate in full compliance with Japanese laws to qualify for the Business Manager Visa. This is particularly important for those involved in the hotel or short-term rental (minpaku) business, which requires appropriate permits and licenses in Japan.

Managing real estate as a business requires adherence to laws such as the Building Standards Act and other relevant regulations. By ensuring your business is legally compliant, you will meet the first essential requirement for obtaining the Business Manager Visa.

The Business Must Be Stable and Sustainable

The business must be recognized as stable and sustainable to qualify for the Business Manager Visa. For real estate investments, rental income must be sufficient to cover business expenses and provide an adequate salary for company directors.

Typically, this means owning at least one revenue-generating property that produces an annual rental income of at least 3 million yen. For example, if you expect a 3% return, you would need a property worth approximately 100 million yen. Meeting this threshold ensures that your business is of sufficient scale and can provide stable income.

Additionally, it’s important to secure a director’s salary in the range of 180,000 to 250,000 yen per month. After deducting management fees, insurance, and loan repayments, the remaining income should be enough to cover this salary. This figure may vary depending on dependents and asset ownership, so careful financial planning is essential.

Finally, positive cash flow is also a key factor in evaluating the business’s stability. After paying all expenses, including property management fees, insurance, and loan repayments, the business should still generate a profit. Tax considerations, such as property tax and other transaction-related taxes, should also be factored into the financial planning.

Even if a new business or temporary losses occur, if you can present a reasonable business plan showing future stability and sustainability, you may still have a chance of obtaining the Business Manager Visa. In such cases, a detailed and persuasive business plan will be critical.

2. Considerations for Renewing the Business Manager Visa Through Real Estate Investment

To renew your Business Manager Visa, it is essential to demonstrate the ongoing viability of your business. Timely filing of tax returns and financial reports, as well as proper tax payments, will be critical. Meeting these requirements strengthens the case for the stability and continuity of the business, which is key to both obtaining and renewing the Business Manager Visa.

3. Important Points When Obtaining a Business Manager Visa for Short-Term Rental (Minpaku) Operations

Foreign real estate investors frequently inquire about obtaining a Business Manager Visa for short-term rental (minpaku) operations. However, there are several important considerations when pursuing this option.

If you acquire the necessary hotel or ryokan license to operate accommodations, the chances of obtaining a Business Manager Visa are quite high. However, the cost of acquiring these licenses, including investment in necessary facilities and renovations, can exceed 1 million yen in some cases.

In recent years, the minpaku business has gained attention as an alternative option. However, the minpaku law restricts operations to 180 days per year. This makes it crucial to create a realistic profit-and-loss simulation when applying for a Business Manager Visa. Many minpaku management companies offer free simulations, so it is recommended to utilize these services.

Because the minpaku business is a relatively new business model, visa screening for such operations is thorough, with careful attention to detail. To ensure success, it is advisable to consult with an expert familiar with the process.

Conclusion

Obtaining a Business Manager Visa through real estate investment in Japan requires careful planning and adherence to strict legal and financial requirements. By ensuring that your business is well-structured, stable, and compliant with local laws, you can improve your chances of success. For specialized cases, such as minpaku operations, working with experts can help you navigate the complexities of the visa application process and increase your chances of securing the visa.