# Expat Community



## Dhanlon

Hello,

I am considering an offer to move to Tokyo for 3 years, and it seems like it will be a great opportunity for advancement. I am a 28 year old male from the US, and was wondering if there were any expat communities in Tokyo. Furthermore, would the transition to the new country be easier living among other expats, or immersing myself in the culture. Both options seem to have positives and negatives associated with them. This would be my first assignment abroad and not really sure what to expect. Thank you for your help.


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## Meritorious-MasoMenos

Dhanlon said:


> Hello,
> 
> I am considering an offer to move to Tokyo for 3 years, and it seems like it will be a great opportunity for advancement. I am a 28 year old male from the US, and was wondering if there were any expat communities in Tokyo. Furthermore, would the transition to the new country be easier living among other expats, or immersing myself in the culture. Both options seem to have positives and negatives associated with them. This would be my first assignment abroad and not really sure what to expect. Thank you for your help.


I lived half my adult life overseas and love it. Most other expats who love it seem to have had a similar experience to mine, either many trips overseas before hand, or long traveling trips overseas previously, as a student or a post-grad traveler. That means we all knew what to expect before agreeing to a long term assignment overseas. If your only experience overseas is a tourist, you'll have to look deep inside yourself before committing. 

However, you're young and I assume unattached. If you have an adventurous soul, it'll be the trip of a lifetime. Re expats, I enjoyed living totally within another culture when I was just a traveler, best way to soak up another language. On assignment, I was in the media, so that I had a ready made expat community to join, with Japan having one of the best Foreign Press Club's offices in the world. Go visit if you do wind up in Japan. Spectacular vistas of Tokyo. 

I suggest both immersing yourself in Japanese culture, which means taking intensive Japanese courses and hanging with the locals as much as possible. Also, keep mingling with the expats as well. There are expat circles in just about any field in Japan.

The only way to do this is to fully commit, never think about going back early once you get over there. I think you're a very fortunate guy and would urge my own son to grab the chance that you have. Keep us informed on your journey, please.


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## BBCWatcher

That sounds like a wonderful opportunity!

One bit of housekeeping I'd check before you go is whether/when you hit the 10 year mark to qualify for U.S. Social Security retirement benefits and U.S. Medicare benefits. Go online to the Social Security Administration's Web site to check your contribution history. If you've made non-trivial contributions within any 10 calendar years then congratulations, you've secured at least your minimum retirement benefits and you've fully qualified for Medicare when you hit age 65. If you haven't, and if you have a choice, then I'd stay on your company's U.S. payroll for a while longer until your Medicare checkbox is checked. (At age 28 you'd at least be very close, presumably.) The Japanese social insurance system is pretty awful (in actuarial terms), so if you have a choice I'd pick the U.S. system over the Japanese system.

If none of that made sense, post a follow-up. 

Another consideration is retirement savings. If you can continue in your company's 401(k) plan (i.e. you'll stay on U.S. payroll), and assuming it's a decent low-cost plan, great. If not, you should factor into your assignment consideration the loss of your U.S. tax-advantaged retirement savings for the years when you will be overseas. (You can reduce that loss to 2 years with some careful planning, i.e. maxing out your 401k for the year before you go then doing the same for the remainder of the year when you return.)

When it comes time to prepare your U.S. tax return covering your initial work in Japan, make sure your accountant (or you!) is taking the Foreign Tax Credit (FTC) and not the Foreign Earned Income Exclusion (FEIE) -- or at least make sure the tax calculation is run that way before deciding whether to take the FEIE. If you choose the FTC-only path that'll preserve your eligibility to continue making U.S. Roth IRA contributions, and you really, really should, every year, to the max. (If you earn too much to make direct Roth IRA contributions -- a happy problem to have -- then Google "backdoor Roth IRA" and do that.) The FTC-only path should also allow you to "bank" some of those higher Japanese income taxes to use as future credits to reduce your future U.S. income tax when you get back, and that's wonderful.

Before you go, get a low-cost U.S. credit card and U.S. debit card that you can use in Japan to access your U.S. funds. My current favorites are the Capital One Quicksilver credit card (the one without the annual fee) and the Charles Schwab Bank High Yield Savings Account, respectively, though there are many good ones. If you're getting paid on U.S. payroll then you'll be relying on these two cards a lot. Bank of America's TravelRewards card is a good second, backup credit card in case your Capital One card doesn't work for some reason. Your ATM card will work at any Japan Post Office ATM but not at all ATMs in Japan -- Japan is a bit odd that way -- so look for the nearest Japan Post ATM. You'll still use cash quite a lot in Japan. Set up your credit cards for automatic full balance payment.

If you like watching Netflix, Hulu, Amazon Prime, or whatever then sign up for a low cost VPN service. Or persuade a relative to set up a Slingbox with DVR (or equivalent) for you, ideally a tech-savvy family member. It's nice if the same family member can receive your postal mail while you're gone -- or see below re: South Dakota. I recommend using that U.S. address for your U.S. credit cards and ATM/debit cards. (Opinions on this vary, but I've had problems with putting non-U.S. addresses on U.S. credit/debit/ATM cards.)

If you have the option, get your U.S. driver's license renewed before you go -- consistent with what's legally permitted, and bearing in mind state/local income tax rules. One option many RV owners/drivers use is to get a South Dakota mail forwarding service and driver's license before you go. You can Google "South Dakota mail forwarding" and find a bunch of options to compare rates and terms. If you want a driver's license there you'll have to physically visit your chosen mail forwarder's office and the local driver's license office in South Dakota before you go.

If you're remaining on U.S. payroll then make sure your payroll department adjusts your local/state income tax withholding to be consistent with residence in Japan, if permitted and legally consistent with your state residency. (See above re: South Dakota as one option.)

If you own real estate in the United States make sure you understand the implications of renting your property if you decide to do that versus selling. Under U.S. income tax law your first $250,000 in capital gains (net of expenses) is generally tax free, but you lose this tax exemption in certain cases especially involving renting out the property.

Do not buy stocks, mutual funds, etc. in Japan (or anywhere else outside the United States) unless you're really, really sure you know what you're doing, and perhaps not even then.  There are tax complications called "PFICs" that are best avoided, in my view. Stick to low-cost U.S. investments. (Vanguard is my current favorite.) You may not even need a Japanese bank account at all if you're getting paid in the U.S. If you have a non-U.S. financial account you will probably be required to report that account annually via "FBAR" (FinCEN Form 114) and/or "FATCA" (IRS Form 8938), so that may be another reason not to get a non-U.S. financial account unless you really need one to receive money (wages/salary) in that country. Spending money overseas really is not a problem, especially in Japan which is still fundamentally cash-based anyway, so the Japan Post ATM will be your friend.

Make sure your company is putting you on international, expat-friendly medical insurance that provides coverage in both the U.S. and Japan (at least) and without a lifetime cap (per U.S. PPACA requirements). Your insurance should also cover medical repatriation costs back to the United States. You should not have to pay any more for that insurance than you currently pay, and (if you are paying something) you might even pay less or zero. They should not be putting you on Japanese local medical insurance in these circumstances since that's not a good fit for your situation, and the benefits would be less attractive.

I'll stop there, but best of luck.


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## larabell

I second that. You may need to find a few friends or groups that speak your language just to keep your sanity but trying to mingle with the natives is the best way I know to shake the feeling of being an outsider. Immersing yourself in the culture can be interesting (if you're even remotely the outgoing type) and rewarding (since you'll start to build up a local support network).

There are any number of English-speaking special-interest groups but they're usually organized around an specific interest or a specific industry. I don't know of any that are based on simply being an expat and I'm not sure a group like that would be very interesting. I'm a techie at heart so I occasionally attend meetings of the Tokyo Linux Users Group. It's not entirely expats by any measure but pretty much everyone there speaks English. Google-up the classified section in Metropolis magazine and you'll see ads soliciting members for all sorts of groups.

As for where to live, there are areas where the ratio of expats to locals is higher but those places tend to be more expensive. I'd opt for someplace where normal Japanese working stiffs live. Public transit here is very efficient (at least in the large cities) and when you need a shot of something more "home-like" you can always travel to one of the markets that cater to expats, spend an evening at one of the clubs where expats hang out, or attend a gathering of some English-speaking group (see above). Base your choice of abode on your work location because you'll be going to work more often than you go to anyplace expat-related. That doesn't mean you have to live right next to the office (in fact, that's usually not a good choice anyway) but near a station further out but on the same line.

Once you've picked a place, find a small bar (if you're into that) or restaurant near your place and start to go there once a week or so. You'll start to see the same people and they'll recognize you and eventually you'll build up a set of "regulars" from your own neighborhood. Before long you'll start to feel like you're right at home.


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## Raffish_Chapish

Loads of expat groups buddy - I'm 30, just moved here a few weeks ago and already have a hectic social life - thanks to Tinder and meetup.com mainly - there's a raging expat scene here.


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## larabell

BBCWatcher said:


> Go online to the Social Security Administration's Web site to check your contribution history. If you've made non-trivial contributions within any 10 calendar years then congratulations, you've secured at least your minimum retirement benefits and you've fully qualified for Medicare when you hit age 65.


Japan and the US have a bi-lateral treaty that covers Social Security. If you work while you're here and pay into the Japanese Social Insurance program (ie: nenkin), the time you work in Japan counts toward your US Social Security, regardless of whether you repatriate or not.



> I recommend using that U.S. address for your U.S. credit cards and ATM/debit cards. (Opinions on this vary, but I've had problems with putting non-U.S. addresses on U.S. credit/debit/ATM cards.)


I had no problem. I just sent my credit card and other financial providers a letter with my change of address. Not one of them complained. Of course, I already had the accounts open for several years (my AmEx since 1978) so they may have cut me some slack to keep an existing customer. In the letter, I said I was on temporary assignment but didn't say for how long.



> If you have the option, get your U.S. driver's license renewed before you go -- consistent with what's legally permitted, and bearing in mind state/local income tax rules.


In other words, if you're a California resident and want to avoid being taxed while you're here, you'll want to cut ties with the state as soon as possible. Just get a Japanese license when you get here and let the Stateside one lapse. A trip to South Dakota just to get a driver's license seems over the top. And some states look at things besides driver's licenses (like voter registration, banking relationships, property ownership, etc) to decide whether or not you owe state taxes. If you live in a state that taxes residents on income earned outside the state (which you should be able to find by googling) you might want to talk to a tax expert. If you don't, don't worry about it.



> You may not even need a Japanese bank account at all if you're getting paid in the U.S.


Assuming you can get your employer to pay your rent and utilities. It's kinda hard to function in Japan without a local bank account.



> If you have a non-U.S. financial account you will probably be required to report that account annually via "FBAR" (FinCEN Form 114) and/or "FATCA" (IRS Form 8938)...


Make sure you keep the combined balances below US $10K and you'll be exempt from that nonsense. Most expats who receive their salary in dollars outside of Japan don't need more than $10K in Japan at any one time.

But... if you do... the FBAR for one or two accounts can be filled out in 10 minutes and FATCA doesn't kick in until you have significant investments outside the US.



> Make sure your company is putting you on international, expat-friendly medical insurance that provides coverage in both the U.S. and Japan (at least) and without a lifetime cap (per U.S. PPACA requirements).


I don't necessarily agree with this. If you're going to be spending the majority of your time in Japan you'll want Japanese health insurance. Most neighborhood clinics and many hospitals won't honor non-Japanese insurance and you may find you have to pony up 100% of the payment in cash for any treatment and try to pry the money out of your Stateside insurance company. Moreover, if your company is sending you over and they have an office in Japan, they'll probably want to put you into the Japanese system anyway.



> Your insurance should also cover medical repatriation costs back to the United States.


Or your employer. That was in my contract both times I was sent over.

Speaking of contracts, if you're coming on assignment you'll want a clause promising repatriation expenses no matter what (ie: if you're laid off or fired). And if they pay you in dollars in the US, you'll want a clause adjusting your salary if the exchange rate slips more than a certain amount (but thing that one through since it works both ways).



> They should not be putting you on Japanese local medical insurance in these circumstances since that's not a good fit for your situation, and the benefits would be less attractive.


How do you figure that? If he gets sick in Japan, he'll want to go to a local doctor, not be flown back home (at least that would be my choice). Medical care here is decent (at least no worse than the US or Britain) and there are even a few English-speaking clinics. And they all accept Japanese insurance. Pharmacies, too. Most companies will pay half the premiums (I believe that's a law for companies over a certain size).


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## BBCWatcher

larabell said:


> Japan and the US have a bi-lateral treaty that covers Social Security. If you work while you're here and pay into the Japanese Social Insurance program (ie: nenkin), the time you work in Japan counts toward your US Social Security, regardless of whether you repatriate or not.


That's correct, but your Japanese credits will not contribute as significantly to your U.S. Social Security retirement benefit amount. The U.S. has the better deal actuarially speaking, and if there's a choice.

The original poster can check that, but I'm quite confident that's how the math would work absent something very unusual.



> Assuming you can get your employer to pay your rent and utilities. It's kinda hard to function in Japan without a local bank account.


That's an assumption, yes. And no, it's very easy to function in Japan without a local bank account with those bases covered, and assuming payroll is in the U.S. (as mentioned). Cash is still king.



> I don't necessarily agree with this. If you're going to be spending the majority of your time in Japan you'll want Japanese health insurance.


I said expat-friendly international insurance. I didn't say insurance that wouldn't work well in Japan.

Look, the original poster is on an _assignment_ to Japan, not emigrating to Japan. (Not yet, anyway.) He needs continuous medical insurance coverage in the United States, period, because that's where he's going to be repatriated if anything truly serious happens. (He would not have indefinite leave permission in Japan. He'll be a guest.) Yes, Japan has wonderful medical care, but Japan-only medical insurance coverage is foolhardy in these circumstances, in my view. It's not enough to have a Japanese local medical insurance policy that covers "emergencies" in the U.S. either -- that'd be inadequate, too.



> Or your employer. That was in my contract both times I was sent over.


That (medical repatriation paid by an employer) is much _less_ attractive due to possible employment termination, company bankruptcy, prepayment/reimbursement issues, etc. It's far better if there's a reputable insurance company providing the medical repatriation coverage. Medical repatriation is a specific repatriation case, and I'm talking about _medical_ repatriation here, specifically.



> Speaking of contracts, if you're coming on assignment you'll want a clause promising repatriation expenses no matter what (ie: if you're laid off or fired).


Agreed.


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## Dhanlon

*Expat safety*

Thank you to everyone who has responded thus far. You have provided a lot of valuable insights. I just wanted to follow up to see if any one knew how safe Japan was for expats. From my understanding it is actually very safe, but I just wanted to clarify and get information from as many people as possible.


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## larabell

You mean safe as in physically safe? Japan is well-known as one of the safest countries in the world. No worries there. Carry a cheap umbrella because that's the one thing I've discovered many people consider "community property" if left unattended.


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