Can You Obtain a Business Manager Visa Through STR Investment? The Reality After the 2025 Legal Revision and Future Outlook

1. Requirements and Current Status of the Business Manager Visa

Short-Term Rental (STR) investment in Japan has long attracted attention not only for its high profitability but also as a means of immigrating to Japan. Particularly before the legal revision in October 2025, the requirements for obtaining a Business Manager Visa were relatively lenient, leading to a rapid increase in foreign investors—especially Chinese investors—using STR businesses as a stepping stone to acquire the visa.

The specific requirements at the time were simply to have a capital or total investment of 5 million yen or more, or to employ two or more full-time staff. In other words, as long as 5 million yen in capital could be prepared, there was no need to hire employees. Furthermore, Japanese language proficiency and management experience were not required at all, and in some cases, using a residence as a combined office space was permitted. This low hurdle spread the perception that one could "immigrate to Japan for 5 million yen," resulting in rampant visa acquisitions through virtual paper companies or small-scale STR operations completely outsourced to third parties.

According to statistical data from the Immigration Services Agency, as of the end of June 2024, the total number of Business Manager Visa holders reached 39,616, of which Chinese holders accounted for 20,551 (51.9% of the total). Looking at the number of new entrants, there were 4,346 in 2022 (including 2,857 from China), 5,295 in 2023 (including 3,924 from China), and 4,483 in 2024 (including 2,976 from China), showing a consistent structure where Chinese nationals accounted for 65% to 74% of the total.

2. Stricter Requirements and Their Impact

In response to this situation, the Japanese government implemented a legal revision on October 16, 2025, significantly tightening the requirements for the Business Manager Visa, with the aim of improving the quality of foreign entrepreneurs and eliminating paper companies without actual substance.

Under the stricter new requirements, the capital requirement was raised sixfold from the previous 5 million yen to 30 million yen or more. Furthermore, even if the capital requirement is met, the employment of at least one full-time staff member is now mandatory. This full-time staff member must be someone with a residence status that has no work restrictions, such as a Japanese national or a permanent resident. In addition, Japanese language proficiency (equivalent to JLPT N2 or higher) is now required for either the applicant or the full-time staff member, and the applicant themselves must have at least 3 years of management experience or a master's degree or higher. Regarding the business office, the combined use of a residence is generally no longer permitted, and securing an independent office space has become mandatory.

The impact of this tightening brought about a devastating change in the number of applications. According to statistics from the Immigration Services Agency, while the average monthly number of applications before the revision (May to October 15, 2025) was approximately 1,700, the monthly average after the revision (October 16, 2025 to the end of March 2026) plummeted to approximately 70, recording a massive 96% decrease in just 5 months. This figure clearly demonstrates how the old system had generated a massive volume of applications lacking actual substance.

3. Changes in Operational Practice

What should be noted in this legal revision is that the screening rules at the time of renewal have also been significantly changed, not just at the time of initial acquisition.

A transitional measure is in place for 3 years from the enforcement date of October 16, 2025 (until October 16, 2028). For those who obtained the visa before the revision, even if they do not immediately meet the new standards (such as the 30 million yen capital), their renewal will be judged based on their management status and the prospect of future compliance. However, even during this transitional period, the submission of a "Document Explaining Activity Details" has become newly mandatory at the time of renewal, and the actual substance of the business is strictly scrutinized.

Specifically, proper payment status of public taxes and dues (taxes and social insurance premiums), the absence of long-term departures from Japan, and above all, the sufficient recognition of actual activities as a business manager have become mandatory. In the STR business, cases where all operations are completely outsourced to an agency and the visa holder themselves is not making substantial management decisions are at a high risk of being deemed not to fall under "business management" activities.

In other words, even if you currently hold a Business Manager Visa, if it is not accompanied by actual business substance, there is a very high operational reality that you will be rejected at the next renewal. Since the full new standards will be applied from October 2028 onwards, existing visa holders must also expand their business scale and establish a structure that meets the requirements by then.

4. Conclusion

Based on the above legal revisions and operational realities, the conclusion is clear. With a small-scale STR investment of about 1 or 2 rooms, it is no longer possible to obtain and maintain a Business Manager Visa.

While this legal revision is often perceived as "the hurdles being raised," it should actually be interpreted as "the previous requirements were abnormally lenient, and they have simply returned to the standard hurdles that should originally exist." Considering that many developed countries require investments in the tens of millions of yen and job creation for investor visas, Japan's new standards have merely caught up with international norms.

As STR experts, we provide end-to-end support from property selection and development fully compliant with Japanese laws, to business operations accompanied by actual substance.

If you are aiming to obtain a visa, we will accompany you in expanding your scale, taking into account the visa acquisition requirements, such as advising on what scale you should expand your STR (Private Lodging Business) to.

In addition to that, there is a possibility that we can support you even if you want to launch other businesses besides STR, so please feel free to consult with us.