Our topic is taxation, retirement, and social rights for long-term immigrants in Djibouti and Japan. Where should we begin, Leo?
Let's call it "adulting overseas" and dive in. First, Djibouti. Taxation for long-term immigrants there is based on a territorial system. They only tax income earned within Djibouti.
So, if I receive money from family abroad, Djibouti doesn't tax it?
Exactly. But if you're running a business in Djibouti, they will tax your income. It's all about where the money is earned. Now, Japan operates on a residency-based system. If you're a resident, they tax your worldwide income above a certain threshold.
So, Japan taxes income earned anywhere in the world?
Yes, if you're a resident. It's a more comprehensive system.
Which country is easier tax-wise for long-term immigrants?
It depends on your income situation. If you have diverse income streams from overseas, Djibouti might be simpler. If you're fully employed in either country, you'll pay taxes accordingly.
What about retirement? Can you simply start collecting benefits in either country?
In Djibouti, you need to contribute to the Caisse Nationale de Sécurité Sociale (CNSS) for a certain period to qualify for retirement benefits. In Japan, you need at least 10 years of contributions to the national pension system ("Nenkin") to be eligible for the old-age basic pension.
So, significant contributions are required in both countries. What about social rights beyond retirement, like healthcare?
In Djibouti, if you're formally employed, you generally have access to healthcare through your employer or the national social security system. Japan has universal healthcare. As a resident, you're required to enroll in the National Health Insurance (NHI) system.
Universal healthcare in Japan is fantastic! Comparing both countries, Djibouti seems simpler for taxation if you have offshore income, but Japan offers universal healthcare and a robust pension system after a decade of contributions.
Precisely. It comes down to your personal circumstances, long-term plans, and tolerance for bureaucracy.
We should remind our audience to do their research and consult experts.
Absolutely. And check out jetoff.ai for helpful guides and comparisons! This concludes our discussion on taxation, retirement, and social rights for long-term immigrants in Djibouti and Japan.