Right now I live in Japan for around 180 days out of the year (two 90 day trips) but I’m starting to think that I want to buy a house here and live here permanently… but I’ve read some troubling things about taxes.
Long story short, I built up a business and sold it when I was 30, and put most of the earnings into real estate investments (all property is in America). My portfolio is worth around $8M and I collect net passive income of around $180k/year from the rentals (cap rate of around 2.8% from the rentals. People think that’s laughably low, which it sort of is, but they are properties in very in demand HCOL areas so I have less properties to deal with and usually have better tenants with fewer-ish problems)
I’ve been told that I will be double taxed on my income. And apparently Japan taxes you on your total income? So basically I get taxed at the full rate from both the US and Japan? This sounds pretty terrible and would mean that half my income is taxed, significantly reducing my lifestyle.
Would marrying a Japanese woman change any of this? I am currently dating a woman in Tokyo and can see myself marrying her. She’s 25 and doesn’t know anything about this scenario so unfortunately she isn’t of much help.
I also barely speak any Japanese (I mean I know some basics but not enough to have a job or anything like that), but I’d move to Tokyo which means that isn’t really a problem and I could continue to learn at my own pace.
My main questions are:
1) How does taxation work? Am I taxed at the US rate first, then taxed at the Japanese rate on the amount that’s left? Or am I taxed at full income from both countries? Or is there some way to apply to tax credits in the US if I am paying in Japan?
2) What kind of visa am I able to get? If I buy a house here does that help with any kind of visa? I’m fine with getting married too but I don’t want to give up my US citizenship.