Leaving Japan? The Complete Guide to Insurance & Pension When You Go

When it's time to leave Japan, the insurance and pension paperwork is easy to push to the bottom of the to-do list. Between packing, saying goodbyes, and closing out your life here, filing forms at the municipal office feels like a low priority.

It shouldn't be. The decisions you make — and the forms you file — in your final weeks can mean the difference between recovering over ¥1,000,000 in pension contributions or losing them entirely. Between a clean exit that leaves your record clear for a potential return, or lingering debts that follow you into a future visa application.

This guide walks through every step: withdrawing from health insurance, terminating your pension enrollment, claiming the Lump-Sum Withdrawal Payment, navigating the tax refund on that payment, and deciding whether to cash out or preserve your pension record through a social security agreement. Plus a day-by-day pre-departure checklist so nothing falls through the cracks.

→ Part of the Health Insurance in Japan series.

The Full Picture: What Needs to Happen

Step 1: File the Move-Out Notification (転出届)

This is the starting point. Everything else flows from it.

Visit your municipal office and file the move-out notification (転出届) between 14 days before and your actual departure date. Bring your Residence Card and My Number Card (if you have one).

Filing the move-out notification triggers several things simultaneously: your resident registration is cancelled, a Certificate of Removal from Resident Register (住民票の除票) is created, your NHI eligibility ends, and your National Pension enrollment terminates.

Critical warning: If you leave Japan without filing a move-out notification — for example, departing on a deemed re-entry permit and letting it expire abroad — your resident registration stays active. NHI premiums and resident tax will continue to accrue. Under the 2027 system, these unpaid amounts will appear in immigration databases and could affect future visa applications.

→ 2027 rule details in ⑥ 2027 Rule Change

Step 2: Health Insurance Exit

If You're on NHI

Your NHI eligibility terminates when you file the move-out notification. Most municipalities handle both at the same counter.

At the counter: Return your insurance card (or My Number Card if used as insurance card). Settle any outstanding premiums — pay in full, or arrange for payment notices to be sent to a Japanese address (a friend, tax representative, etc.). If you've overpaid (due to advance payments or bank transfer), request a refund — note that refunds generally go to a Japanese bank account, so keep yours open until the refund processes.

If You're on Shakai Hoken

Your employer handles the Social Insurance eligibility loss when you leave the company. You don't need to do anything at the municipal office for health insurance.

However: If there's a gap between your last day of work and your departure date, you're technically required to enroll in NHI for that period. If the gap is just a few days, consult with your municipal office — they can advise on practical handling.

Make sure you receive your Certificate of Loss of Social Insurance Eligibility (社会保険資格喪失証明書) from your employer. You'll need this if NHI enrollment for the gap period is necessary.

Step 3: The Pension Lump-Sum Withdrawal Payment — Your Biggest Financial Decision

What It Is

Foreign nationals who've paid into Japan's pension system (National Pension or Employees' Pension) for 6 or more months can claim a one-time refund of a portion of their contributions after leaving Japan. This is the Lump-Sum Withdrawal Payment (脱退一時金).

Eligibility Requirements (All Must Be Met)

You are not a Japanese national. You are no longer enrolled in any Japanese public pension. You have 6+ months of pension contribution history. You have not met the 10-year qualifying period for old-age pension. You have never been entitled to a disability pension. You are claiming within 2 years of losing pension enrollment. You no longer have a registered address in Japan (move-out notification filed).

How Much You'll Get

National Pension Lump-Sum Withdrawal:

Formula: Last fiscal year's monthly premium × 1/2 × calculation multiplier

With the 2025 premium of ¥17,510/month:

The current cap is 60 months (5 years), raised from 36 months in April 2021. An increase to 96 months (8 years) is under consideration.

Employees' Pension Lump-Sum Withdrawal:

Formula: Average Standard Monthly Remuneration × 18.3% × 1/2 × calculation multiplier

Example: Average remuneration ¥200,000, 5 years (60 months) enrolled: 200,000 × 0.183 × 0.5 × 60 = approximately ¥1,098,000

For employees with decent salaries and several years of enrollment, the Employees' Pension refund alone can exceed ¥1,000,000.

The Tax Bite — And How to Get It Back

A 20.42% income tax is withheld from your Lump-Sum Withdrawal Payment at source. On the ¥1,098,000 example above, that's approximately ¥224,000 deducted before you receive anything.

The good news: you can recover nearly all of it.

Before you leave Japan, appoint a tax representative (納税管理人) — a trusted friend, accountant, or administrative scrivener (行政書士) in Japan — and file the notification at your local tax office. After your payment is processed, your tax representative files a tax return on your behalf. The Lump-Sum Withdrawal Payment qualifies as "retirement income" (退職所得), which receives a generous deduction. In most cases, the effective tax drops to near zero, and almost the entire 20.42% is refunded.

If you leave Japan without appointing a tax representative, recovering this money becomes extremely difficult. This is the single most expensive mistake departing foreign residents make.

How to Claim: Step by Step

Before departure (while still in Japan): File your move-out notification and obtain a copy of the Certificate of Removal from Resident Register (住民票の除票). Confirm your Basic Pension Number (基礎年金番号) from your pension handbook or notification. Prepare your overseas bank account details (bank name, branch, address, account number, proof that the account is in your name). Make copies of your passport (pages showing name, date of birth, nationality, signature, residence status). Appoint your tax representative at the tax office. Download the Lump-Sum Withdrawal Payment claim form from the Japan Pension Service website.

After departure (within 2 years): Complete the claim form and mail it with supporting documents to the Japan Pension Service. Processing takes approximately 4 months. Payment is deposited to your overseas bank account in foreign currency, converted at the average exchange rate for the month the payment is approved.

Lump-Sum Withdrawal vs Social Security Agreement: The Strategic Choice

Countries with Social Security Agreements

Japan has social security agreements with 24 countries (as of late 2025). Of these, 20 allow totalization — counting your Japanese pension enrollment period toward your home country's pension qualifying period.

Example: If you worked 7 years in Japan and 5 years in Germany, the combined 12 years can count toward Germany's pension eligibility requirements.

The Trade-Off

If you take the Lump-Sum Withdrawal Payment, your Japanese enrollment period is erased. The totalization option disappears. You get cash now but lose the long-term pension benefit.

Decision Framework

Take the Lump-Sum Withdrawal when: You're not planning to return to Japan. Your country doesn't have a totalization agreement with Japan. Your Japanese enrollment period is short (well under 10 years) with no realistic path to reaching the 10-year threshold for Japanese old-age pension.

Preserve your enrollment period when: You might return to Japan and could eventually reach 10 years of total enrollment. Your country has a totalization agreement, and adding Japanese years meaningfully improves your home pension eligibility. You've accumulated 7+ years and returning for 3 more is realistic.

Concrete example: A German national worked in Japan for 7 years on Employees' Pension.

Option A — Lump-Sum Withdrawal: Receive approximately ¥1.5M (before tax/after refund). But the 7-year enrollment record disappears.

Option B — Totalization: Those 7 Japanese years count toward German pension eligibility. If they continue contributing in Germany, they may eventually receive pensions from both countries — Japanese pension (proportional to 7 years) plus German pension. No immediate cash, but potentially higher lifetime benefit.

This is a genuinely consequential decision. If the amounts are significant or your situation is complex, consulting a social insurance attorney (社会保険労務士) is worthwhile.

NHI Premium Settlement: The Monthly Proration Rule

NHI premiums are calculated monthly. If you lose eligibility mid-month, you're not charged for that month.

Example: If your move-out date is March 15, you won't be charged for March (eligibility ends March 15, so March isn't counted as an enrolled month).

Overpayment: If you've paid ahead through bank transfer or lump-sum prepayment, the excess will be refunded. Confirm the refund destination account before you leave.

Underpayment: If you have outstanding premiums, settle them at the counter or designate a Japanese mailing address for payment notices.

If You Might Come Back: Key Considerations

Don't leave NHI arrears behind

Under the 2027 system, outstanding NHI premiums will be visible to immigration examiners. Unpaid amounts from a previous stay could complicate your next visa application. Clear all debts before departure.

Think twice about the Lump-Sum Withdrawal

If there's a reasonable chance you'll return, preserving your pension enrollment period may be worth more than the immediate cash. Each time you claim the Lump-Sum Withdrawal, the clock resets to zero.

Deemed Re-Entry Permits

If you're leaving temporarily (under 1 year) on a deemed re-entry permit without filing a move-out notification, your NHI and National Pension enrollment continues. Premiums keep accruing while you're abroad.

If you file a move-out notification but leave on a deemed re-entry permit, NHI and National Pension eligibility terminates. However, you cannot claim the Lump-Sum Withdrawal until the re-entry permit period expires (you're still considered a pension enrollee until then).

Healthcare After Departure: Overseas Medical Expense Claims

If you received medical treatment while still enrolled in Japanese insurance and need to claim reimbursement after leaving, the Overseas Medical Expense (海外療養費) system may apply.

Treatment must have occurred before your insurance eligibility ended. Reimbursement is based on what the same treatment would have cost under Japan's fee schedule — not what you actually paid. You'll need an itemized medical statement and receipt from the foreign provider, translated into Japanese.

Practical advice: If you have health concerns, see a doctor in Japan before departure. It's simpler, cheaper, and avoids the paperwork of overseas claims.

30-Day Pre-Departure Checklist

30 Days Before

□ Confirm departure date □ Notify employer of resignation (Shakai Hoken enrollees) □ Appoint a tax representative (file at your local tax office — this cannot be done after departure) □ Decide: Lump-Sum Withdrawal vs totalization (research your country's social security agreement)

14 Days Before to Departure Day

□ File move-out notification at municipal office □ Complete NHI withdrawal (NHI enrollees) □ Return insurance card / My Number Card □ Settle NHI premiums (pay arrears or request overpayment refund) □ Obtain Certificate of Removal from Resident Register (needed for Lump-Sum Withdrawal claim) □ Pay remaining resident tax in full (if you had an address on January 1) □ Return Residence Card at the airport (submitted to immigration on departure)

Pre-Departure Preparation

□ Confirm pension handbook / Basic Pension Number □ Organize overseas bank account information (for Lump-Sum Withdrawal deposit) □ Copy passport pages (name, DOB, nationality, residence status) □ Receive Social Insurance Eligibility Loss Certificate from employer (Shakai Hoken) □ Download and pre-fill Lump-Sum Withdrawal claim form □ Decide whether to keep your Japanese bank account (recommended until refunds process)

After Departure (Within 2 Years)

□ Mail Lump-Sum Withdrawal claim to Japan Pension Service □ Receive payment (~4 months after submission) □ Tax representative files return for income tax refund on the withholding

Frequently Asked Questions

Q: Can I claim the Lump-Sum Withdrawal more than once? A: Yes. If you return to Japan, re-enroll in pension, and leave again, you can claim again. But each claim resets your enrollment period — years don't accumulate across multiple claims.

Q: Can permanent residents claim the Lump-Sum Withdrawal? A: Yes, as long as you're a foreign national (not Japanese) and meet all other requirements. However, if you've accumulated 10+ years of enrollment, you qualify for old-age pension and cannot claim the Lump-Sum Withdrawal.

Q: I left without returning my NHI card. What do I do? A: Mail it back. Contact your former municipality's NHI office for the return address. Keeping an active insurance card you're no longer entitled to creates misuse risk and may result in continued premium charges.

Q: I left Japan suddenly and couldn't file a move-out notification. A: A representative in Japan (friend, family member) can file it on your behalf. A signed power of attorney may be required — if possible, prepare one before departure.

Q: When does the 2-year claim window for the Lump-Sum Withdrawal start? A: From the date you last lost public pension enrollment. If you filed a move-out notification, that's the day after your move-out date. If you left on a deemed re-entry permit without filing move-out, it starts when the permit expires.

Q: What happens to my Japanese bank account after I leave? A: Banks have varying policies for non-resident accounts. Some allow you to maintain a non-resident account; others require closure. Check with your bank before departure. Keeping the account open until all refunds (NHI overpayment, tax refund, etc.) are processed is strongly recommended.

Navigate the Full Series

This article is for general informational purposes and does not constitute tax, legal, or financial advice. Individual circumstances vary significantly — consult a licensed tax accountant (税理士), social insurance attorney (社会保険労務士), or administrative scrivener (行政書士) for personalized guidance. Content is current as of February 2026.

Leaving Japan is one of those life transitions that's both exciting and overwhelming. Did you go through this process yourself? Did you know about the Lump-Sum Withdrawal Payment, or was it a surprise? And for those who've already left — did you manage to get the tax refund on the withholding, or did the 20.42% disappear? Your experience navigating the exit could save someone a lot of money and stress.