Japan's Visa Reforms and Their Impact on Foreign Business Investment

Japan's 2025 visa reforms represent a seismic shift in the landscape for foreign entrepreneurs, investors, and businesses. By raising the minimum capital requirement for the Business Manager Visa from ¥5 million to ¥30 million and introducing stricter employment and personal qualification criteria, the government is recalibrating its approach to foreign investment. While these changes may deter smaller-scale ventures, they also create a fertile ground for strategic opportunities in real estate, consulting, legal compliance, and premium commercial sectors. For investors, the key lies in understanding how these reforms will reshape market dynamics—and acting decisively before the October 2025 implementation.

The New Barriers and Their Implications

The revised Business Manager Visa now demands a sixfold increase in capital, a mandate for at least one full-time employee, and proof of either three years of management experience or a master's degree in business. These thresholds are designed to filter out speculative or short-term ventures, prioritizing long-term, high-quality investments. While this may reduce the number of applicants, it also signals a shift toward a more stable and economically substantive foreign business ecosystem.

For real estate, the reforms could drive demand in non-metropolitan areas. The Startup Visa, now available nationwide (previously limited to Tokyo and Fukuoka), encourages entrepreneurs to establish businesses in smaller cities with lower operational costs. This trend is likely to boost demand for commercial and residential properties in secondary cities like Sapporo, Nagoya, and Fukuoka, where real estate prices remain significantly lower than in Tokyo. Investors who position themselves in these markets now could capitalize on rising demand as foreign entrepreneurs seek affordable, long-term bases.

SMEs and Startups: A Dual-Edged Sword

The higher capital requirement will undoubtedly challenge small and medium-sized enterprises (SMEs) and early-stage startups. However, the Startup Visa and Future Creation Individual Visa provide a lifeline, allowing entrepreneurs to transition to the Business Manager Visa under existing criteria. This creates a two-tier system: high-capital ventures will dominate the Business Manager Visa category, while startups and SMEs may rely on alternative pathways, such as Employer of Record (EOR) services, to navigate the new rules.

For investors, this duality presents opportunities in sectors that support these ventures. Consulting firms specializing in visa compliance, business plan development, and financial structuring will see increased demand. Similarly, legal services focused on corporate governance and immigration law are poised for growth. The requirement for business plans to be reviewed by certified professionals (e.g., CPAs, SME consultants) further amplifies the need for expert guidance, creating a niche market for advisory services.

Premium Commercial Real Estate: A Hidden Gem

The reforms also indirectly benefit premium commercial real estate. As foreign entrepreneurs seek to establish credible, long-term operations, they will prioritize high-quality office spaces that signal professionalism and stability. This is particularly relevant in Tokyo's central districts, where demand for premium co-working spaces and serviced offices is expected to rise. Additionally, the extended residency period (up to two years under the Startup Visa) may lead to increased investment in residential real estate, particularly in areas with strong infrastructure and access to business hubs.

Strategic Investment Opportunities

The window to act is closing rapidly. With the reforms set to take effect in mid-October 2025, investors should focus on three key areas:

1. Real Estate in Secondary Cities: Acquiring commercial or residential properties in cities like Fukuoka, Sapporo, or Nagoya before demand surges. These markets are undervalued but primed for growth as foreign entrepreneurs seek cost-effective locations.
2. Consulting and Legal Services: Investing in firms that specialize in visa compliance, business planning, and corporate structuring. These services will become essential for navigating the new regulatory environment.
3. Premium Office Spaces: Targeting real estate developers or REITs that cater to high-end commercial tenants. The demand for professional, scalable office solutions will rise as foreign businesses prioritize legitimacy and operational efficiency.

Conclusion: A Calculated Bet on Japan's Future

Japan's visa reforms are not a barrier but a catalyst for a more refined and resilient foreign business ecosystem. While the higher capital requirements may deter casual investors, they also create a vacuum for strategic players who can adapt to the new rules. By focusing on real estate in secondary cities, consulting services, and premium commercial assets, investors can position themselves to benefit from Japan's evolving market. The key is to act before October 2025, when the reforms become enforceable—and when the rush to comply begins.