Compare taxes and see how much you save moving from Japan to Germany
Japan and Germany have a long-standing professional and industrial relationship — automotive (Toyota-Germany supply chains, BMW and Mercedes in Japan), electronics, and engineering sectors create significant bilateral mobility. Both countries have comparable income tax burdens at the top, with important structural differences. Japan: national income tax 5–45% plus a flat 10% local inhabitant tax = combined 55% at the top; substantial social insurance premiums (health ~10% combined, pension ~18.3% combined). Germany: Einkommensteuer (income tax) 14–45%; solidarity surcharge (Solidaritätszuschlag) applies to those earning above €18,130 (approximately 5.5% of the tax, not income — so effectively 0.5–2.5% of gross income); social insurance contributions approximately 20% from the employee (health, pension, unemployment, nursing care). Germany's top effective marginal rate (income tax + solidarity surcharge + social insurance) is broadly comparable to Japan's. Both countries also levy church tax (Kirchensteuer in Germany, currently no equivalent in Japan). Key differences: Japan has a household tax deduction system; Germany uses a spousal splitting system (Ehegattensplitting) similar to France's quotient, significantly benefiting married couples with income disparities. The Japan-Germany DTA coordinates tax positions and prevents double taxation. Both countries are high-cost, high-wage economies — Munich and Tokyo are consistently among the world's most expensive cities.
National + Local Income Tax + Social Insurance
National income tax 5–45%; 10% local inhabitant tax; social insurance premiums ~28% combined; worldwide income taxed for Japan residents
Progressive Einkommensteuer + Solidaritätszuschlag
German income tax 14–45%; solidarity surcharge (Solidaritätszuschlag) for higher earners; social insurance contributions ~20% employee; church tax where applicable; worldwide income taxed for residents
At ¥8,000,000 / €65,000 income:
At ¥8M (~€52K), Japan national + local tax approximately 21% before social insurance. Germany at €65K: income tax approximately 22% effective + solidarity ~0.7% + social insurance employee ~20% = total deductions approximately 43%. Japan's social insurance is also high but employer portion is larger. Both countries have very high all-in burden. DTA prevents double taxation.
| Income | JP Tax | DE Tax | Savings | 10-Year |
|---|---|---|---|---|
| ¥5M / €32,000 | ~¥400,000 national + ¥500,000 local (18%) | ~€6,500 Germany income tax (20%) + solidarity | Comparable income tax; Germany's social insurance adds ~20% | Similar overall burden at lower income |
| ¥8M / €52,000 | ~¥1,700,000 Japan income+local (21%) | ~€11,000 Germany income tax (21%) + solidarity + social | Income tax broadly comparable; Germany has higher social insurance employee contributions | Munich costs significantly above Japanese regional cities |
| ¥15M / €97,000 | ~¥3,900,000 Japan income+local (26%) | ~€28,000 Germany income tax (29%) + solidarity | Germany modestly higher at mid-high income | Both expensive cities (Munich = Tokyo premium) |
| ¥30M / €195,000 | ~¥9,000,000 Japan combined (30%+) | ~€65,000 Germany (33%+) + solidarity | Germany higher above €250K threshold | Both countries top 40–55% combined with social |
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Manage International Payments →Yes — Japan and Germany have a Double Taxation Agreement. Key provisions: employment income taxed where work is performed; business profits in country of operation; dividends 15% withholding at source (reduced from domestic rates); interest 10% withholding; royalties 0%. Pension income is taxed in the country of residence for private pensions (Betriebsrente, SIPPS equivalents). Japanese pensions paid to German residents: generally taxable in Germany. German pensioners in Japan: generally taxable in Japan. German Rentenversicherung paid to Japan residents: check specific provisions. Social security coordination is handled separately through the Japan-Germany Social Security Agreement.
Germany's Ehegattensplitting allows married couples to file jointly, adding both spouses' incomes together, halving the total, applying progressive rates to the half, then doubling the resulting tax. This can significantly reduce the tax burden for couples with unequal incomes — a household where one partner earns €100,000 and the other earns €0 pays the same total tax as two people each earning €50,000. Japan has a different approach: a spousal deduction (haigūsha kōjo) reduces the earner's taxable income by up to ¥380,000 if the spouse earns less than ¥1.03M annually. Japan's system is less powerful than Germany's Ehegattensplitting but still benefits single-income families. For dual-income couples earning similar amounts, Germany's and Japan's systems converge to approximately the same result as individual filing.
Japan's NISA (Nippon Individual Savings Account) allows tax-free investment in domestic and international stocks, ETFs, and investment trusts up to ¥1.8M/year in growth NISA or ¥600,000/year in income NISA — investment returns (dividends and capital gains) are completely tax-free while held in NISA. Germany has no direct equivalent — all capital gains and investment income outside a pension product are taxed at the flat Abgeltungsteuer rate of 26.375% (25% + solidarity surcharge) regardless of holding period, with a Sparerpauschbetrag (saver's allowance) of €1,000 per person per year. For long-term equity investors, Japan's NISA is more favourable than Germany's flat capital gains tax system.
German nationals can enter Japan visa-free for up to 90 days as tourists. For employment or longer stays: Work Visa — the most common category is 'Engineer/Specialist in Humanities/International Services', covering tech, engineering, finance, and language-related roles. Employer must sponsor the visa through the Immigration Services Agency. Highly Skilled Professional (HSP) visa — Japan operates a points-based system awarding points for salary, age, academic background, and Japanese language skills. Professionals with 70+ points qualify for the HSP-1 visa (1 year); 80+ points can apply for permanent residency after just 1 year of HSP status. Germany's Blue Card has no Japan equivalent, but Japan's work visa categories cover most professional roles. After 10 years of continuous residence (or 1–5 years for highly skilled), permanent residency is available.
Tokyo and Munich are both expensive by global standards, but with different cost structures. Tokyo: rent in central areas (Minato-ku, Shibuya) for a 1-bedroom apartment: ¥150,000–¥250,000/month (approximately €900–€1,500). Transportation is extremely efficient and relatively affordable (monthly passes ¥10,000–¥15,000). Food is diverse and affordable at market and convenience store level; restaurants range from ¥800 ramen to expensive Michelin dining. Munich: rent for a 1-bedroom in central Munich: €1,500–€2,500/month — among Germany's highest. Public transport Deutschlandticket (€49/month national). Food and groceries comparable to UK or Australia. Tokyo's weakness vs Munich: international school fees for children are extremely high in Tokyo (¥2M–¥4M/year). Munich's weakness vs Tokyo: housing costs higher relative to disposable income in many comparable salary ranges.