Questions about remote working while on WHV

Hi guys,

So, from June 2024 I will be moving to Japan and for the first year I will be under a WHV. I am currently working full time for a European company with a branch in my home country (Spain), and I plan to continue working for them remotely. I understand that this is legally feasible, but now I have doubts about which scheme should be the most advantageous for me in this case. Basically my company offers me two options: either to become an independent contractor or to be hired through an EOR.

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* **Independent contractor**: I have read many posts here related to the subject and have learned a lot, including about the Article 172 Declaration, not being a tax-resident and the 20% tax that WHV holders have to pay. I’m also aware of the 個人事業 scheme. The only question I have about this is whether I am required to establish a 個人事業 to submit the Article 172 Declaration. From what I’ve been reading this is not really the case, am I right? Would I have any tax advantage if I did it anyway?
* **EOR**: I have used this scheme with my company before in another country without issues, and the same EOR company offers the service for Japan. My company would pay the extra cost of the EOR and this would not impact my salary.

My final question would be: what objective advantages would I have if I choose one over the other? At first glance, I might think it is better to become an independent contractor as I could still receive my salary in euros to an account in Europe or Japan instead of the equivalent in yen that I would receive if I were hired through an EOR. But perhaps being hired through an EOR has some tax advantage that I am not aware of? Perhaps automatic payment of national health insurance and pension?

After finishing the WHV I plan to continue residing in Japan with another visa status, but since the pandemic, the change of status for my country is no longer possible and I will have to go back to my country for a couple of months to apply for a new visa.

Sorry for the long post. I plan to stay in Japan for a few more years after this WHV and I want to comply with taxes before is too late. Hope you can help me.

by Mediotaku23