Japan's tighter visa rules are pushing foreign business owners out of the country

Foreign entrepreneurs who built businesses in Japan are leaving or looking elsewhere after the government sharply raised the requirements for the business manager visa. The South China Morning Post reported the case of a couple who had expanded small businesses across several sectors five years ago and now describe a sense of hostility toward them.

The rule change is specific. From October 2025 the Immigration Services Agency required applicants to hold 30 million yen (about $187,000) in capital, up from 5 million yen, and to employ at least one full-time worker who is Japanese or holds stable residency. From January 2026 new applicants must also demonstrate Level N3 Japanese, an intermediate level on the country's standard proficiency test. The agency cited the use of shell companies to obtain residency.

The effect is measurable. Nearly 1,000 foreign nationals on business manager visas left Japan in the first half of 2026, almost four times the number a year earlier, Nikkei Asia reported. Nippon.com documented the same contraction in applications and approvals.

The policy addresses a real abuse and carries a cost. Japan's working-age population is shrinking, the yen is weak at about 157 to the dollar, and small foreign-owned firms are one of the few channels bringing both capital and labour into regional economies.