• 2021.03.16
  • Japan business manager visa
  • property investment
  • renting apartment

Japan Business Manager Visa with Japan Property Investment

What is a business manager visa?

Business manager visa is a residence permit for a foreign national (including a foreign corporation) who has started the management of trade or other businesses in Japan, invested in such businesses, or engaged in the management of said business or started the management of such businesses in Japan.

Hello! Again! I am Masaki Tanzawa and a licensed property management professional in Japan.
Today I will resume a matter of application for a business manager visa.
And, it is specialized to learn how to apply by purchasing a property.

How to apply for the business manager visa?

Requirements to apply for a Business Manager visa and for a renewal.
1.Company paid up capital must be at least JPY5,000,000.
2.Companies must have a decent office/store space in Japan.
3.Company has to be practical and the business plan must be approved.
4.Applicants must have enough salary/income to live independently in Japan.
5.Capital Investment of 5 million yen fund or hiring at least two full time employees who are either a Japanese national, a Permanent Resident, a Spouse or Child of a Japanese National, a Spouse or Child of a Permanent Resident, or a foreign national with a Long-Term visa.

What is term of stay for business manager visa?

There are five durations for a term of stay:
3 months, 4 months, 1 year, 3 years, and 5 years.

The duration will be judged after examination by the Immigration Bureau of Japan. Normally 1 year period will be granted at first. It needs renewal to extend the term of stay. Renewal procedures for the duration are required to continue running the business properly and expanding till the visa’s expiration date.


Why is property investment recommendable to apply for the business manager visa?

As mentioned above, for an application it is inevitable to do firm business in Japan. You will actually have some selections to start a business, with such trading, food service, manufacturing and etc.. 

I view a property business such as rental or management is a rather easy-to-start business and easy to make steady. Further it is assured that a property is tangible as an asset even if an application for a visa is not permitted.

How virtually to apply for visa by owning property in Japan?

For qualifying for this visa, the investments and purchases of property must be structured into a business.
And it requires the applicant to be an executive officer of a company established in Japan, so just the investments or purchases of property do not meet requirements to get this visa.
It may be eligible for this visa for example if your obtained property is utilized as a property renting business or guest houses.
I deem at this stage the following will be examples.

1.To buy a luxury house or a room of condominium and to lend out
2.To buy a condominium or apartment building and to lend out
3.To buy a business property and to lend out

Principles to run the rent business by owning property to meet the requirements?
In order to obtain and renew this visa in the property investment as I mentioned above, anyway it is necessary to make a profit.
Specifically in rental business, your business needs to cover all business expenses with the rent income (= Balance forecast should be positive for accounting).
And the followings are the expenses you would pay when buying and maintaining property.

Initial cost when purchased:
1.Property acquisition tax
2.Registration license tax
3.Stamp duty
4.Judicial scrivener’s fee
5.Agent fee etc.
Annual expenses to maintain:
1.Rental management fee
2.Property management fee
3.Property tax
4.Tax agent fee
5.Insurance etc.

You need to see gross profit advertised in the selling property as for just reference when you find a property, and pursue its real profit to use for steady business.
For example, if you can look at an advertisement as 8-9% yield expected, in this case it will be enough to consider it to be actually 5-6% to run.

A revenue model cases

1st case in Tokyo 23 wards
Step 1 Assumed that you purchase one condominium of 200 million yen (1.8 million us dollar).
Sales price is including land and building.
Total amount of purchase price is to be about 220 million yen (2.0 million us dollar), as the initial cost to purchase procedure is estimated about 10% of the purchase price.
But the initial cost will be excluded for the calculation of running costs.
Step 2 To set up a company to hold the condominium and you will be an executive officer of the company
Anticipated rent per year to be about 11.7 million yen (about 0.11 million us dollar)
18 ㎡ one studio room (Average rent 6,000 yen/㎡ × 18 = 108,000 yen monthly rent)
108,000 × 9 rooms × 12 months = 11,664,000 yen annual revenue
Step 3 Annual expenses are estimated to be about 4 million yen (37,000 us dollar).
Gross yield = 11,664,000 yen ÷ 200,000,000 yen x 100 = 5.8%
Net yield = (11,664,000 yen – 4,000,000 yen) ÷ 200,000,000 yen × 100 = 3.8%
Step 4 You will be paid a salary accordingly as an executive officer from the company revenue. (It is said in general that 2.4 million yen and more will be necessary at least for an executive salary)

If you wish to find more return from property investment in the short term, it will be possible to pick up the following simulation.
2nd case in Suburbs of Tokyo
Step 1 Assumed that you purchase one apartment of 150 million yen (1.4 million us dollar).
Sales price is including land and building.
Step 2 Anticipated rent per year to be about 15.4 million yen (about 0.14 million us dollar)
16 ㎡ one studio room (Average rent 3,300 yen/㎡ × 16 = 52,800 yen monthly rent)
52,800 × 25 rooms × 12 months = 15,840,000 yen annual revenue
Step 3 Gross yield = 15,840,000 yen ÷ 150,000,000 × 100 = 10.56% (The net yield is estimated to be 7-8%)
*****However, vacancy risk may be a little higher and costs for frequent repair should be considered and reserved in the 2nd case.


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Do you need help to invest and apply for a visa?

Please inquire me when you are looking for a property in Tokyo.
Please let me know when you think to apply for the visa, I will help you jointly with a reliable law office.
I have a good partnership with legal offices to assist visa applicants with new application and renewal.

Please feel free to contact me if you have further inquiries.
AER NEXT LLC.
Address: Keio Shinjuku Bldg. 7F, 3-2-1, Shinjuku, Shinjuku-ku, Tokyo 〒160-0022
Contact Person: Masaki Tanzawa
email: tanzawa@ablife.jp
Website: https://www.investorvisa.jp/investorvisa/japan/
License Number of Real Estate Broker: Tokyo 105965