🇺🇸 United States vs 🇯🇵 Japan
Tax residency, treaties and PE risk compared.
| Dimension | 🇺🇸 United States | 🇯🇵 Japan |
|---|---|---|
| Residency rule | Citizenship-based + Substantial Presence | Jusho (domicile) + 1-year presence |
| Day threshold | 183 days | 365 days |
| Warning band | from 122d | from 183d |
| Tax range | 10–37% federal + state | 5–45% + 10% local |
| Tax treaties | 70+ | 85+ |
| PE risk | High | Medium |
| Digital nomad visa | No | Yes |
| Best for | US citizens optimising via FEIE ($126,500) and treaty benefits | Non-permanent residents (first 5 of 10 years) shielding foreign income |
| Common pitfall | US citizens are taxed on worldwide income forever — there is no day-count exit. | Non-permanent resident status ends after 5 years — then worldwide tax kicks in. |
Verdict
For most nomads optimising for residency safety, 🇯🇵 Japan is the lower-risk base versus 🇺🇸 United States. United States's high PE risk and 183-day rule make it easier to trip into full residency.
Deep dive
🇺🇸 United States residency rules →
Deep dive
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