Japan's New Visa Rules Threaten Foreign Residents Amid Labour Shortages

Japan, Japan Jul 2, 2026 ALN: In a tiny Tokyo restaurant filled with the smell of Nepalese dumplings, Budhathoki Samjhana surveys the business she built from scratch but may now have to give up as Japan tightens visa rules. This situation is emblematic of a broader issue facing foreign nationals in Japan, particularly as the country grapples with a rapidly ageing population and significant labour shortages across various sectors.

Japan has long been known for its strict immigration policies, and recent developments have intensified the scrutiny placed on foreign residents. The ruling Liberal Democratic Party (LDP) introduced new rules for business manager visas in late 2025, aiming to tighten the requirements for foreign entrepreneurs looking to establish businesses in the country. Despite the pressing need for foreign labour in many industries, including hospitality, healthcare, and construction, a growing sentiment against immigration has emerged among certain segments of the Japanese population.

Nepalese national Ms. Budhathoki, who spent a decade away from her young daughter to create a new life for them in Tokyo, now faces expulsion from the country due to her inability to meet the new visa specifications. "I always wanted to become a bridge between Japan and Nepal, but my dream is broken," the 38-year-old lamented from the capital's Okubo district, which is known for its diverse culinary landscape featuring Vietnamese cafes, Indian curry houses, and Korean barbecue joints. This area, like many others in Japan, has seen an influx of foreign residents who contribute to the local economy and enrich the cultural tapestry of the nation.

The stricter visa regulations come in response to complaints from some residents regarding overtourism and the skyrocketing land prices, which have been partially attributed to foreign investment. In light of these concerns, Japanese Prime Minister Sanae Takaichi has advocated for tighter regulations on foreign nationals. Recently, her government announced a significant increase in visa fees for certain tourists for the first time in nearly half a century, raising the cost for both single and multiple-entry permits five-fold. Furthermore, Japan plans to triple a departure tax to 3,000 yen ($18) for all travellers, including Japanese citizens, starting July 1, 2026. The additional funds generated from this tax are earmarked to address issues arising from the increasing number of foreign tourists.

While business manager visa holders are granted a three-year grace period to comply with the new conditions, many thriving businesses, particularly popular eateries in Okubo, fear they will not be able to meet the heightened requirements. Ms. Budhathoki expressed her concern, stating, "The biggest problem is the increase in capital requirement to 30 million yen ($185,000) from 5 million yen ($30,000). It's impossible." She arrived in Japan as a student in 2016 and worked tirelessly to open her first restaurant in 2023. After opening her third eatery in January, she finally brought her 14-year-old daughter from Nepal to join her, following a decade of separation. Now, she finds herself anxious not only about her own situation but also about the future of her daughter, who is now enrolled in a Japanese school. "My heart pounds when I think about the next visa renewal," she said, highlighting the emotional toll that these changes have taken on her family.

Impact on Long-Term Residents

The tightening of visa regulations is not only affecting new immigrants but also long-term residents like Indian restaurant owner Manish Kumar, who has lived in Japan for three decades. Despite the grace period, he has already been informed that his business manager visa will not be renewed, leaving him in a precarious situation. Visa experts indicate that immigration officials have become increasingly stringent, requiring more documentation, including tax receipts and proof of social insurance premiums. Mr. Kumar expressed his despair, saying, "My children only speak Japanese and we're told to go back to India," shedding light on the personal and familial implications of these policy changes.

In response to the growing discontent, more than 67,800 people have signed a petition calling for the suspension of the new rules. Petition organiser Taro Tsurugashima described Mr. Kumar's situation as shocking, noting that he is a trusted member of the business community who has contributed significantly to the local economy over the years. The tightening of regulations follows the Justice Ministry's announcement of a "zero illegal foreign residents" plan, aimed at addressing public concerns regarding immigration and its perceived impact on society.

Japan's demographic challenges are well-documented. With one of the lowest birth rates globally, the nation faces a super-ageing crisis that is expected to worsen in the coming years. Increasing immigration could potentially help alleviate some of these demographic pressures, but it has also become a contentious political issue. In the lead-up to last year's upper house election, immigration emerged as a significant topic, contributing to the rise of the "Japanese-first" Sanseito party, which characterizes immigration as a "silent invasion." Since taking office in October, Prime Minister Takaichi has pledged to implement stricter screening processes for foreign nationals, further complicating the landscape for those seeking to live and work in Japan.

The business manager visa, which was initially designed to attract entrepreneurs and stimulate economic growth, has seen a surge in popularity, with approximately 46,000 holders by mid-2025—an increase of 70% from 2020. A significant portion of these visa holders are Chinese nationals, reflecting broader trends in immigration patterns. However, concerns have arisen regarding the misuse of this visa category, with reports of unscrupulous real estate agents misleading potential immigrants into believing that purchasing property in Japan could secure them a visa. This misuse has prompted calls for more stringent regulations to ensure that the visa system is not exploited.

Experts warn that the tougher measures are disproportionately impacting small restaurant owners and young entrepreneurs, who may lack the resources to navigate the new requirements effectively. Daisuke Komori, an administrative affairs advisor, noted that he has declined potential clients seeking to move to Japan, many of whom were motivated by their children's education or a desire to leave China. He emphasized the importance of balancing the need for stricter regulations with the need to support genuine entrepreneurs and small business owners who contribute to the economy.

At an April parliament session, Justice Minister Hiroshi Hiraguchi stated that there are currently no plans to review the new rules, although he indicated that the Ministry would respond based on individual circumstances. Among the new requirements, business manager visa holders must now employ a Japanese national or long-term resident, a stipulation that poses significant challenges given Japan's shrinking workforce. A 30-year-old Bangladeshi man, who runs a trading business in Tokyo, expressed frustration at the impracticality of this requirement, stating, "Who will apply for a job at a company whose manager's status is unstable with a visa that has to be renewed every year?" This sentiment underscores the broader implications of the new regulations, which may inadvertently hinder economic growth and innovation in Japan by making it more difficult for foreign entrepreneurs to establish and sustain their businesses.

As Japan navigates these complex issues, the future of its immigration policies remains uncertain. The balance between addressing public concerns about immigration and fostering an environment conducive to foreign investment and entrepreneurship will be critical in shaping the nation’s economic landscape in the coming years. The experiences of individuals like Ms. Budhathoki and Mr. Kumar serve as poignant reminders of the human impact of policy decisions and the need for a more nuanced approach to immigration that recognizes the contributions of foreign residents while addressing legitimate concerns within Japanese society.