The Basics of International Inheritance When There Is Property in Japan｜Which Country's Law Applies, Who Inherits What

“I want to inherit my father's deposits and real estate in Japan, but my father was a Chinese national and I live overseas”—the first thing that must be decided is not the order in which the procedures should be handled. It is which country's law governs the inheritance in the first place.

If you start preparing documents without settling this point, the very scope of the heirs may change, requiring the estate division agreement to be redone. In international inheritance, the most costly mistake is getting this first step wrong.

This article organizes the framework of international inheritance involving property in Japan into three layers: applicable law, procedures, and tax.

Key points of this article

• In international inheritance, applicable law (which country's law governs the inheritance)／procedures (which country's government offices and financial institutions' rules govern the process)／taxation (which country imposes tax) are determined separately.
• Under Japanese law, the applicable law for inheritance is, in principle, the decedent's national law (Article 36 of the Act on General Rules for Application of Laws).
• However, there is a mechanism called renvoi. If the decedent's national law provides that Japanese law should apply, Japanese law applies. In practice, Japanese law is often applied by renvoi for Chinese nationals and people who lived in common-law jurisdictions.
• Even when the applicable law is foreign law, procedures at Japanese banks and Legal Affairs Bureaus proceed under Japanese rules.
• For inheritance tax, property located in Japan is always subject to Japanese inheritance tax, regardless of the nationalities or addresses of the decedent and heirs. The basic inheritance-tax exemption (¥30 million＋¥6 million×the number of statutory heirs) was not changed in the 2026 tax reform either.

1. Three patterns referred to as “international inheritance”

In Japanese practice, a matter is handled as international inheritance when it falls under any of the following situations.

The pattern most frequently brought to our office is the overlapping situation where the decedent was a foreign national, had property in Japan, and the heirs also live overseas. The difficulty increases because it is necessary to determine the applicable law described next.

2. Layer 1: Which country's law governs the inheritance (applicable law)

Japan's rule is “the decedent's national law”

Japan has a law called the Act on General Rules for Application of Laws, which determines which country's law applies to legal relationships involving a foreign element. For inheritance, it provides that the decedent's national law applies.

In other words, when a Chinese national who lived in Japan dies, Chinese law is the starting point. Who the heirs are, the statutory shares of inheritance, and whether forced heirship exists are all determined under that country's law.

This is where “renvoi” comes into play

However, when you examine the other country's law, it may provide that “Japanese law should be used in this case.” The mechanism by which the matter returns to Japanese law is called renvoi.

The general tendencies can be organized as follows.

Please note that these are only general tendencies. The conclusion may change depending on when and where the decedent lived, whether the property is movable or immovable, and whether there is a will. At the initial stage, our office confirms these underlying facts and, when necessary, reaches a determination in coordination with attorneys and local specialists.

What changes when the applicable law changes

• The scope of the heirs: Under Japanese law, a spouse and children are heirs, but the scope and order may differ by country
• Statutory shares of inheritance: The percentages change
• Forced heirship: Some countries do not have the system at all
• Validity of a will: The standards for determining whether its form is valid change

When the scope of the heirs changes, the people who should participate in the estate division agreement also change. An agreement is invalid if even one person is missing, making this the most significant turning point.

3. Layer 2: Procedures follow Japanese rules

This point is often misunderstood. Even if the applicable law is determined to be foreign law, closing a deposit account at a Japanese bank and changing the registered name of real estate at a Japanese Legal Affairs Bureau are carried out under Japanese practical rules.

Specifically,

• You must prove that you are an heir using documents that Japanese financial institutions or Legal Affairs Bureaus will accept
• If the decedent was a foreign national and had no Japanese family register, you must obtain birth certificates, marriage certificates, death certificates, and similar documents from the home country and attach Japanese translations, using them in place of a family register
• To explain how the heirs are determined under that country's law, you may be asked to submit the provisions of the applicable law and their translations
• Heirs living overseas must prepare a signature certificate from a diplomatic mission abroad in place of a seal-impression certificate

These tasks all arise. In an inheritance between Japanese nationals, collecting several copies of a family-register transcript may be enough; in international inheritance, there is a threefold task of collecting certificates, translating them, and explaining their consistency. This is also the part that takes our office the most time in international inheritance matters.

4. Layer 3: Property in Japan is always subject to Japanese inheritance tax

Regardless of which country's law becomes the applicable law, taxation is determined under a separate set of rules. This is an independent determination as well.

Principles to keep in mind

Under Japanese inheritance tax rules, property located in Japan is subject to tax regardless of the nationalities or addresses of the decedent and heirs. Even when a foreign national living overseas inherits only real estate in Japan, it is not excluded from Japanese inheritance tax.

On the other hand, whether property located overseas is also subject to Japanese inheritance tax varies according to the respective addresses and nationalities of the decedent and heirs, as well as their history of residence in Japan during the past 10 years. An incorrect determination here can result in getting the scope of the tax filing itself wrong.

Basic exemption

The basic exemption used as a guide for whether inheritance tax applies is ¥30 million＋¥6 million×the number of statutory heirs. In the Reiwa 8 fiscal year (2026 fiscal year) tax reform, the basic income-tax exemption was increased, but the basic inheritance-tax exemption was not changed. Because the names are similar, this point is easily confused and requires attention.

The “number of statutory heirs” here is counted according to the approach of Japan's inheritance tax law. When the applicable law is foreign law, the treatment may become an issue, so a tax accountant must make the determination for an actual filing. For matters expected to require an inheritance-tax filing, our office can connect clients with partner tax accountants experienced in international matters.

5. The destination and required documents differ by type of property

Even when property is located in Japan, the procedures are not handled in one unified process.

If accounts are spread across 5 banks, you will perform the same work 5 times. For heirs living overseas, exchanging documents each time is a burden.

6. Five facts to establish before consulting us

Once the following five points are known, most of the outlook for an international inheritance can be determined.

1. The decedent's nationality (at the time of death; if the decedent naturalized, also the date of naturalization) 2. The country where the decedent last lived and the period of residence there 3. The number of heirs, their relationships, nationalities, and current countries of residence 4. The types and approximate locations of property in Japan (bank names, real-estate locations, and so on) 5. Whether there is a will

With these five points in hand, at the initial consultation we can explain the laws most likely to apply, the general direction of the documents that will be needed, and the expected timeline. Conversely, starting to prepare documents while these facts remain unclear is the most roundabout approach.

7. Three common misconceptions about international inheritance

“Because I am a foreign national, I cannot complete procedures in Japan.” You can. Procedures for property in Japan are handled in Japan, and foreign nationality itself is not an obstacle. Only the types of certificates required will change.

“If I complete inheritance procedures in the home country, I can move the Japanese property as well.” You cannot. Japanese financial institutions and Legal Affairs Bureaus require documents that comply with Japanese practice. The results of procedures in the home country can be used as one of the supporting materials.

“Because I do not live in Japan, Japanese inheritance tax does not concern me.” It does. Property located in Japan is subject to Japanese inheritance tax regardless of address or nationality.

Frequently asked questions

Q. The decedent was a foreign national and had no Japanese family register. How can I prove who the heirs are? A. Obtain certificates concerning birth, marriage, and death issued by the home country, and attach Japanese translations to prove the inheritance relationship. Since the types of certificates issued differ by country, it is important to design at the outset which combination of documents will be sufficient.

Q. If the applicable law is foreign law, do I need to retain a lawyer in that country? A. Not necessarily, if the matter is limited to procedures in Japan. However, because it is necessary to explain to the Japanese office how the heirs and their shares are determined under that country's law, obtaining a written opinion from a local law firm may be more reliable in some cases.

Q. Can inheritance tax be imposed in both Japan and the country of residence? A. It is possible. A foreign tax credit is available as a mechanism for adjusting double taxation, but whether it applies and its scope require an individual determination. Confirmation by a tax accountant is necessary.

Q. A will was prepared in a foreign language. Can it be used in Japan? A. It may be usable if its form is valid. A Japanese translation is required for use in Japan, and depending on its contents, probate proceedings in the Family Court may also be necessary.

Q. One of the heirs has never been to Japan. A. The procedures are still possible. They can proceed by obtaining a signature certificate at a diplomatic mission abroad or similar institution in the heir's country of residence. Since the method of obtaining one differs by country, advance confirmation is essential.

Avoiding mistakes at the first stage

International inheritance is an area where even specialists often say that “90% is determined by the initial assessment.” Misreading even one of the three layers—applicable law, procedures, or taxation—can make the documents you collected unusable.

Gyoseishoshi Arch Office has been based in Osaka for more than 15 years and has handled procedures involving foreign nationals and people living overseas, including status-of-residence matters. We can provide support in Chinese and also accept consultations from heirs living in mainland China, Taiwan, and Hong Kong.

Consulting us at the stage when you “do not know which country's law applies to my case” is ultimately the approach most likely to keep costs down. Please have the five facts above ready when you contact us. We provide support in either Japanese or Chinese.

Related articles

• Process for heirs living overseas to proceed with inheritance procedures in Japan
• What heirs living in mainland China should confirm first when inheriting in Japan
• The relationship between Japanese inheritance and nationality or place of residence
• Procedures when an heir is not a Japanese national
• The relationship between people living overseas and Japanese inheritance tax