Paying guests at your house on a tourist visa

Hi there,

I have a friend who recently purchased a property in a ski town in Japan (Niigata), and is currently staying there on a temporary visitor visa (the 90 day visa exemption as an Australian).

Whilst there (and possibly for a short time after they return to Australia), they have short-term (i.e 1 week) and long-term (i.e. 3+ months) guests paying to stay at the lodge. The guests are all gaijins and the majority are paying their costs to stay there into the owner's Australian bank account. There are no formal contracts with any of the guests, only emails with loose terms.

I've raised my concerns with my friend that this may not be legal. The 'Embassy of Japan in Australia' website (http://www.au.emb-japan.go.jp/en/visa/visit_japan_temporaryvisitor.htm...) lists the permitted activities of the temporary visitor visa, and I don't think earning money from guests staying at the lodge would be allowed; in effect it is earning money in Japan. Or am I wrong?

Without the proper visa (and/or license to run the lodge as a pension?), I was under the impression they would be in breach of their visa conditions, specifically the 'Immigration Control and Refugee Recognition Act' (http://www.immi-moj.go.jp/english/newimmiact/newimmiact_english.html), and could face fines, jail or deportation.

This is not to mention that 1) all the pensions in the area have to pay taxes to the community, and as my friend is not running a registered pension they are avoiding this tax, and 2) socially it is not a good move as the Japanese would see it as stealing their business.

If someone could please point me to any references stating why they legally could or could not do this (preferably something official rather than heresay), that would be greatly appreciated. Thank you.

Nobody will know, if you don't tell.

Is your friend paying property tax on it? Any property management/administration company involved?

They are paying the standard taxes as a property owner (however not paying the local tax a registered pension owner would, as it is not a registered pension) and the house is in their name. There's no management/administration company involved.

... and you care why? I assume your friend is an adult and responsible for themself.

No money is overtly changing hands in Japan, and I presume that they're not setting up as a business but rather doing this casually on a "friends of friends" basis.

So I doubt anyone would notice - they would probably just assume your friend has some other friends coming to stay.

Are you looking to report them to the authorities?

"... and you care why?"

That seems like a rather odd thing to say given I stated they "could face fines, jail or deportation."

Whilst the majority of guests are paying their costs from one Australian bank account to another, others have been paying in yen, so there is money changing hands in Japan.

It sounds illegal to me which is why I looked into it in the first place and the research I've done seems to back that up. From speaking with locals (Japanese) including a pension owner, prominent community figures and a Tokyo High Court judge, they would be in serious trouble (as stated above) if someone was to dob them in. Fortunately it seems the Japanese don't like confrontation or to cause a fuss, but anyone else; it's just not worth the risk in my opinion.

That's why I'm asking for specific references with regards to visa laws and such, to confirm the comments made by locals and alert my friend, who to this point seems to be ignorantly blasé about the whole thing. I have found a number of documents already but anything further would be helpful. Thank you.

Are you looking to report them to the authorities?

That has been my impression too (that being it rather than a genuine friendly concern).

SEAmonster - If it was me and I had a genuine friendly concern for a friend, I'd not be likely to make a Tokyo High Court Judge an early port of call in asking about the situation. I also wouldn't give so many details on a random Internet board.

I'm giving the OP the benefit of the doubt. Someone who really just wanted to report the person wouldn't be doing this type of homework. They'd just make the report anonymously and be done with it.

Anyway, I'm not sure this situation violates the visa regulations on work, but they are probably violating laws regarding renting property or running a pension. I'd spend my time looking into that.

And why care? Because friends are supposed to look out for each other. I'd hope my friends would let me know if I was doing something that was possibly illegal or could result in big fines. Of course it is still ultimately up to the house owner to decide if they are willing to take the risks, but I'm sure they'd appreciate being able to make an informed decision.

I'm giving the OP the benefit of the doubt. Someone who really just wanted to report the person wouldn't be doing this type of homework. They'd just make the report anonymously and be done with it.

Not necessarily. An anonymous, well-argued report would certainly carry more weight and provide a better chance that somebody would actually look into it than something based on guesses and assumptions.

Anyway, I'm not sure this situation violates the visa regulations on work, but they are probably violating laws regarding renting property or running a pension. I'd spend my time looking into that.

It may violate neither. I very much doubt that renting out two rooms requires a license of sorts. But I may be wrong. However, one way or another, he is obliged to pay taxes on his rental income.

And why care? Because friends are supposed to look out for each other. I'd hope my friends would let me know if I was doing something that was possibly illegal or could result in big fines. Of course it is still ultimately up to the house owner to decide if they are willing to take the risks, but I'm sure they'd appreciate being able to make an informed decision.

Well, I may be wrong about the guy. But as Guest already pointed out, why to make this construct revealing so many details? It really begs for suspicion. He could have just asked about the rules without any further disclosures. But again, I may be wrong, maybe he is just awkward. An overzealous friend (can often cause more harm than your sworn enemy).

Actually, I'd be pretty pissed off, if I were his friend and found out about this. The guy was smart enough to make his fortune (sufficient to buy his winter retreat in a foreign country), so I doubt he hasn't considered the legalities and associated risks. The OP gave him his opinion (fair and square between friends), but now he should stay out his business.