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Japan raises permanent residency fees 2000% amid labor crunch and rising anti-immigration sentiment

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Japan has implemented sweeping changes to its permanent residency policies, sharply increasing fees and tightening eligibility criteria despite a severe labor shortage. Effective October 1, 2026, the application fee for permanent residency surged by 2,000%, rising from 10,000 yen to 200,000 yen. Fees for residence status changes and stay extensions also skyrocketed, with the highest tier now costing 75,000 yen. The government justified the move as a means to fund stricter deportation policies for undocumented residents and to support Japanese-language education.

The screening process for permanent residency has become more rigorous, requiring applicants to demonstrate an annual income exceeding the average for Japanese households. Previously, the threshold was around 3 million yen, but it has now risen to 4.5 million yen for single-person households. Starting April 2027, proficiency in the Japanese language and understanding of social customs will be mandatory for permanent residency, a shift from earlier practices where these factors were only considered during naturalization. Additionally, the government retains the authority to revoke permanent residency for tax evasion, health insurance non-payment, or criminal activity.

The policy shift has sparked controversy, with critics arguing that it contradicts Japan's need for foreign workers to combat population decline. Prime Minister Sanae Takaichi defended the changes, stating they aim to ensure public safety and peace of mind. However, foreign residents like Dennis McAdams, an American teacher, have expressed frustration, citing cases where long-term contributors to Japan's economy face unexpected rejections due to minor oversights. Economists warn that the new policies may deter foreign workers, further straining Japan's labor market.

Public opinion in Japan is increasingly leaning toward anti-immigration sentiment, with opposition to expanding foreign acceptance rising sharply from 35.6% in 2024 to 56.3% in 2026. The far-right Sanseitō party has gained traction, advocating for Japan-first principles. Despite these tensions, the government maintains that the policy is not aimed at excluding foreigners but at ensuring compliance with laws and regulations.

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