Japan Tightens Foreign Driver's License and Business Visa Rules

このページを日本語で読む

The Cabinet Secretariat has released a progress report, current as of the end of March, on the government's new foreign resident policy adopted in January. Among the 102 measures, two areas already tightened last October saw sharp declines: the pass rate for the written test required to convert a foreign driver's license to a Japanese one, known as gaimen kirikae, fell by about 50 percentage points, while monthly applications for the Business Manager status of residence dropped by roughly 96%.

The government says it will continue reviewing both the rules and their application to ensure the systems are properly managed.

Tightening Loopholes

On April 28, the Cabinet Secretariat's Office for a Society of Well-Ordered and Harmonious Coexistence with Foreign Nationals released details on the status of the 102 measures, including their current progress, remaining challenges, policy outlines, and implementation. The findings were also reported to the Liberal Democratic Party's Headquarters for Foreign Nationals Policy.

According to the report, the National Police Agency tightened the written knowledge test and practical driving test for converting foreign driver's licenses to Japanese licenses in October 2025. In the three months through December, the pass rate for the written test fell to 42.8%, a sharp drop of 49.7 percentage points from 92.5% in 2024. The pass rate for the driving test also declined, falling 17.3 points from 30.4% in 2024 to 13.1%.

The foreign license conversion system had come under scrutiny after loopholes allowed foreign tourists without a resident record in Japan to use hotels as their address when applying.

Since October 2025, the National Police Agency says it has been "strictly enforcing" the rules, including barring foreigners staying on tourist visas without a resident record from converting their licenses.

The agency is also surveying driver's license systems for foreign residents in other countries and examining traffic accidents involving foreign drivers in Japan.

Business Manager Visa Applications Plunge

The Business Manager status of residence, designed for entrepreneurs, had also come under scrutiny. In some cases, applicants obtained visas by setting up paper companies with no real business activity. Critics said the status was being used as an easy route into Japan, particularly by Chinese nationals, citing plans to operate private lodging businesses.

On October 16, 2025, the government tightened the requirements, including raising the minimum capital from ¥5 million ($32,000) to ¥30 million ($192,000). Applications for the status had averaged about 1,700 a month between May 2025 and October 15. From October 16 through the end of March 2026, that figure fell to about 70 a month—a drop of roughly 96%.

Meanwhile, Tokyo Shoko Research released survey findings on April 23 showing that about 45% of 299 companies run by foreign nationals said the tougher requirements would affect them in some way. Another 5.3% said they were considering closing their businesses.

Impact on 'Indo-Nepali' Restaurants

The firm noted that bankruptcies among "other specialty restaurants"—a category that includes small, Nepalese-run curry shops often referred to as "Indo-Nepali" restaurants—reached 91 in fiscal 2025, the highest level in 30 years.

Many of these businesses are already believed to be under strain from rising prices and labor shortages, Tokyo Shoko Research said, warning that the stricter requirements could put them under even greater pressure.

As part of measures to address illegal overstayers, the Immigration Services Agency announced its Zero Illegal Foreign Residents Plan in May 2025. The plan included faster refugee screening, after a significant number of foreign nationals with finalized deportation orders refused to leave Japan, claiming they had applied for refugee status.

Since the plan was introduced, the backlog of pending refugee applications has begun to fall. It peaked at 20,141 in May 2025, but had dropped to 15,969 by the end of the year—a decline of more than 4,000 in just over seven months.

Crackdowns on illegal employment have also been stepped up, with the Immigration Services Agency working more closely with police and other authorities. In 2025, 1,837 people were caught, up from 1,378 in 2024—an increase of about 30%.

At the same time, the Ministry of Foreign Affairs remains reluctant to suspend visa exemptions for short-term visitors from Turkey, a step requested by Saitama Governor Motohiro Ono.

JESTA Likely to Pass This Session

Against this backdrop, a bill to revise the Immigration Control and Refugee Recognition Act passed the House of Representatives plenary session on April 28 this year. The bill includes the creation of JESTA, an electronic travel authorization system that would screen foreign nationals from visa-exempt countries before they travel to Japan.

Under JESTA, travelers would be required to submit information online several days before departure, including their name, purpose of visit, and place of stay. That information would be checked against criminal records and other data. If authorities suspect a traveler may overstay, they could prevent the person from boarding a plane or ship bound for Japan.

The bill is expected to pass during the current Diet session. Preparations are underway to introduce JESTA in fiscal 2028, about two years from now.