Japan to Tighten Residency Rules for Foreign Employees on Intra-Company Transfers – New Restrictions for Transfer Visas Coming in 2026

Tokyo, April 8, 2026 — The Japanese government is preparing to introduce stricter residency requirements for foreign employees transferred by their companies under the Engineer/Specialist in Humanities/International Services visa, commonly used for intra-company transfers.

According to sources close to the Immigration Services Agency and the Ministry of Justice, the planned changes will raise the bar for foreign workers moving to Japan on transfer status, aiming to ensure that only genuine high-value transfers are approved and to prevent misuse of the system.

What Changes Are Expected?

The forthcoming revisions, expected to take effect later in 2026, are likely to include:

• Longer minimum prior employment period with the overseas parent or affiliate company (potentially increasing from the current one year to two or more years).

• Higher salary thresholds for transferred employees to qualify for long-term residency pathways.

• Stricter scrutiny of the actual role in Japan to ensure it matches the specialized or managerial nature claimed in the visa application.

• Enhanced documentation requirements proving the transfer is essential for business operations and not merely a way to fill lower-skilled positions.

These measures would apply specifically to employees transferred by multinational companies, a category that has grown significantly in recent years as Japan tries to attract global talent while protecting its domestic labour market.

Why Japan Is Tightening the Rules

The government’s move is driven by growing concerns that some companies have been using the intra-company transfer route to bring in workers for roles that do not genuinely require specialized skills or international experience. Officials have noted cases where transferred employees end up performing routine or unskilled tasks, undermining the original purpose of the visa category.

This tightening follows recent policy adjustments, including the introduction of Japanese language proficiency requirements for certain Engineer/Specialist visas earlier this year. The overall goal is to make Japan’s immigration system more selective, focusing on high-skilled, high-impact foreign talent while reducing potential abuse.

Japan’s foreign resident population reached a record 4.13 million at the end of 2025, and the government is under pressure to balance labour shortages in certain sectors with public concerns about rapid demographic change and integration challenges.

Impact on Multinational Companies and Foreign Employees

For companies:

• Multinational corporations will face longer lead times and stricter documentation when transferring staff to Japan.

• HR and global mobility teams will need to plan transfers earlier and provide stronger justification for each case.

• Companies with a history of compliance issues may face additional hurdles.

For foreign employees:

• Employees planning intra-company transfers will need to demonstrate longer tenure with the parent company and a clearer link between their overseas role and the Japanese position.

• Those already in Japan on transfer visas may find pathways to permanent residency or extensions more challenging if the new rules are applied retroactively to pending cases.

The changes are expected to affect a wide range of industries, including IT, finance, manufacturing, consulting, and engineering, where intra-company transfers are common.

Broader Context of Japan’s Immigration Policy

This latest tightening is part of a consistent trend in 2026. Japan has been gradually making its immigration system more selective while expanding programs such as the Specified Skilled Worker (SSW) scheme for lower-skilled sectors. The government is trying to strike a balance between addressing severe labour shortages and maintaining public confidence in controlled migration.

The Engineer/Specialist in Humanities/International Services visa category remains one of the largest for foreign workers, with around 475,000 people holding this status at the end of 2025. Any significant changes to transfer rules will therefore have wide-reaching effects on Japan’s ability to attract and retain global talent.

What Companies and Employees Should Do Now

• Employers: Review current transfer pipelines and begin preparing stronger documentation packages. Consider accelerating planned transfers before the new rules take effect.

• Foreign employees: If you are planning a transfer to Japan, consult with your company’s HR or an immigration specialist as early as possible. Those already in Japan should monitor their residency status and explore options for permanent residency before any new restrictions apply.

• All parties: Stay updated through official channels, as the exact details and implementation date will be confirmed in the coming weeks.

For the latest Japan work visa updates, intra-company transfer rules, permanent residency pathways, and 2026 immigration policy changes, explore our complete collection here: Japan Visa & Immigration Updates

Japan’s plan to tighten residency rules for foreign employees on intra-company transfers reflects the government’s determination to ensure that skilled migration delivers genuine value to the Japanese economy. While the changes may create short-term challenges for multinational companies, they are part of a broader effort to build a more sustainable and selective immigration system for the future.