Detailed comparison
| Side-by-side comparison of taxation, cost of living and scores between the two countries. |  France | |
|---|---|---|
| Taxation | ||
| Dividend tax | 31.4% | 20.3%, Edge to this country |
| Capital gains tax | 31.4% | 20.3%, Edge to this country |
| Corporate tax | 25% | 23.2%, Edge to this country |
| Wealth tax | Yes, IFI (real estate only) | No |
| Direct inheritance | 45%, Edge to this countryScale5-45% | 55%Scale10-55% |
| Cost and real estate | ||
| Monthly FIRE budget | €2,700 | €2,600, Edge to this country |
| Cost-of-living score | 38.5 | 42.7, Edge to this country |
| Reference city | Paris | Tokyo |
| City-center 2-bed rent | €2,450 | €1,200, Edge to this country |
| Safety and FIRE score | ||
| Insecurity | 2.0 | 1.4, Edge to this country |
| FIRE Ultimate V3 score | 64.6 | 75.6, Edge to this country |
Verdict
- Japan wins on current capital: a flat 20.315% against France's 31.4%, and even a near-exemption of unremitted foreign income during the first five years.
- Japan also wins on quality of life: 12th on the 2025 Global Peace Index (the safest), top-ranked schools (PISA 533), and a weak yen that boosts purchasing power in euros.
- France keeps the right to stay: a French citizen lives there as of right, with no visa or work requirement, where Japan has no retirement visa and demands employment or a spouse.
- France also keeps the inheritance advantage for large estates: up to 45% in the direct line with a €100,000 allowance per child, against up to 55% in Japan.
- Verdict: Japan wins for anyone who can enter through work or family and prioritizes quality of life; France stays simpler for a pure rentier with no active settlement plan.
Frequently asked questions about this duel
Is capital really taxed less in Japan than in France?
Yes for durable residence: a flat 20.315% on dividends and capital gains, against France's flat tax of 31.4%. And during the first five years, unremitted foreign income is not taxed in Japan, which widens the gap further. Source: PwC 2026.
Can a French citizen settle freely in Japan as in Europe?
No. France grants its citizens the freedom to settle; Japan does not: no retirement visa, and the only passive stay (Designated Activity No. 40) lasts 12 non-renewable months. You need a work or family visa to remain. That is the major reason to stay in France for a rentier with no active plan.
Where is inheritance gentler, in France or Japan?
In France for large estates. France taxes direct-line inheritance up to 45% after a €100,000 allowance per child, while Japan climbs to 55% above 600 million JPY and reaches worldwide assets once you are durably settled. Source: KPMG and PwC 2026.