Japan Gets Tough: Stricter Business Manager Visa Renewals from July 2025

Japan Redefines Business Management — Passive Investment No Longer Counts

Introduction

From July 10, 2025, the renewal process for Japan’s Business Manager Visa has become significantly stricter. In addition to financial statements, applicants are now required to submit a detailed written report explaining their actual management and business activities during their period of stay.

This shift reflects the government’s growing concerns about abuses of the system and will have direct implications for foreign entrepreneurs and investors.

1. What Has Changed: New Documentation Required

Applicants must now submit:

A written report outlining management and business activities carried out during the previous period of stay
Explanations for any changes from the original business plan
Supporting evidence such as contracts, accounting records, or client information

In short, numbers alone are no longer enough. Immigration authorities want to see proof of real business activity.

2. Why the Rules Have Been Tightened

The Immigration Services Agency has expressed strong concern that many applicants do not truly meet the eligibility requirements of the visa. Key reasons include:

Proliferation of “paper companies”
Companies established on paper but with no real business activity.
Mismatch between business plans and reality
For example, a company claims to be engaged in trade but generates income only through consulting for acquaintances.
Activities not qualifying under visa requirements
Importantly, short-term rental operations (minpaku) are not recognized as a qualifying business for the Business Manager Visa.
- If the property is managed entirely by a third-party operator and the visa holder does not directly engage in management, the risk of renewal denial is extremely high.
- If, however, the individual is directly involved in planning, operating, and marketing the business, the treatment may differ—but authorities have made clear they will apply strict scrutiny.

3. Red Flags for Visa Renewals

Renewal applications are particularly at risk in the following scenarios:

Annual revenue below JPY 5 million
This raises doubts about whether meaningful business activity is taking place.
Discrepancy between submitted business plan and actual operations
Immigration will not overlook inconsistencies between what was promised and what is actually happening.
Deficit or insolvency
Companies with negative financials must provide improvement plans and, in some cases, evaluation reports from certified public accountants or licensed management consultants.

4. How to Prepare for Renewal

The required written report should include:

Revenue and profit trends, with explanations for any increases or decreases
Details of key clients, products, or services
Analysis of the business environment (market conditions, costs, external factors)
Future business strategy and corrective action plans

For small companies or those with limited revenue, the expectation will be to provide greater detail and supporting evidence.

5. Implications for Foreign Investors and Entrepreneurs

Owning real estate or short-term rental properties without active management does not qualify as “business management.”
Simply being a landlord or outsourcing operations to a management company will not satisfy visa requirements.
Even when directly managing operations, applicants must provide detailed proof of their activities to convince immigration authorities.

6. Capital Requirement Increase from October 2025

In addition to the July changes, the government has announced that from October 2025, the capital requirement for new Business Manager Visa applications will rise from JPY 5 million to JPY 30 million.

It remains unclear whether this requirement will apply to individuals who already hold a Business Manager Visa. No official statement has been released yet.
However, based on past practice, it is generally expected that the new requirement will not be applied retroactively to those who have already obtained the visa.

7. Implications for Foreign Investors and Entrepreneurs

Owning real estate or short-term rental properties without active management does not qualify as “business management.”
Simply being a landlord or outsourcing operations to a management company will not satisfy visa requirements.
Even when directly managing operations, applicants must provide detailed proof of their activities to convince immigration authorities.
Future applicants should be aware of the steep capital requirement increase to JPY 30 million, which will significantly raise the bar for entry.

Conclusion & Call to Action

The Business Manager Visa is not just a residency status; it is designed for those who are genuinely engaged in running and managing a business in Japan.

The stricter renewal requirements introduced in July 2025, combined with the upcoming capital requirement increase in October, mark a clear policy shift: the Immigration Services Agency aims to filter out nominal or passive cases and prioritize applicants with real economic contributions.

Many people assume that simply owning property or running a short-term lease automatically qualifies as a business.
However, under Japan’s immigration rules, real estate investment alone is generally not considered “business management.

I am not a licensed immigration lawyer or gyoseishoshi (administrative scrivener), so this is not an official legal opinion. The definition of what qualifies as “business” for visa purposes is determined solely by the Japanese government and immigration authorities.

What is clear from the recent enforcement starting in July 2025 is that immigration authorities are applying stricter reviews. They are now looking for evidence of active and ongoing management, not passive ownership or outsourced operations.

👉 At Yamamoto Property Advisory, we help foreign investors and entrepreneurs navigate Japan’s evolving legal and real estate landscape.
We work with a trusted network of gyoseishoshi (administrative scriveners/immigration lawyer) and shihoshoshi (judicial scriveners/para-legal) to provide end-to-end support—from company setup and visa compliance to real estate acquisition and investment structuring.

📩 Contact us today or email yamamoto@yamamoto-property.jp to ensure your business and investments in Japan remain compliant, sustainable, and future-proof.

Source: https://youtu.be/PDCSs5c8wLQ?si=05xuWaLy7tGyM7AJ (Youtube by gyouseishoshi in Japanese)

About Toshihiko Yamamoto
Toshihiko Yamamoto is the founder and principal broker of Yamamoto Property Advisory, specializing in luxury and investment properties for an international clientele. With over two decades of global business experience and a CCIM designation, he provides trusted guidance to foreign investors navigating Japan’s real estate market.

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📘 Author of “The Savvy Foreign Investor’s Guide to Japanese Properties” – available on Amazon, iBooks, and Google Play.

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