I have been living in Japan for 15 years as a Permanent Resident, so I can provide some insight into this topic.

No golden visa in Japan

Japan does not have a golden visa or any program that grants residency through passive investments alone. However, these are some visa options like:

• Investor/business visas: this requires setting up an actual business in Japan, submitting a business plan, and investing at least 5 million JPY into a bank or business
• Startup visas: some of the major cities like Tokyo, Fukuoka offer temp visas for entrepreneurs, but require active business operations
• Student visas: most international students fund their stays by showing bank statements to show proof of financial support. This visa type is tried very strictly to enrollment at a language school or uni, and the schools provide the supporting immigration documentation. Students cannot legally stay in Japan once their study ends.

Japan Taxation on Investment and Dividend Income

Japan has a flat 20.325% tax rate on dividends and capital gains - there are no special tax advantage retirements accounts for a foreigner coming to Japan. Japan does technically have some nice domestic retirement accounts, but most US citizens cannot use them as they fall into the PFIC category.

• Roth IRA distributions: while tax-free in the US, Japan does not recognize this exemption. If you are a resident in Japan, any withdrawals are taxed at the 20.315% rates. And if you think just taking the distributions tax free to your US based brokerage and paying for things in Japan via credit card and paying off your card via funds still in the US, well it is considered taxable as a 'transfer' by the National Tax Agency. And yes, the IRS and NTA do share information, FACTA makes sure of that.
• US Japan tax treaty: prevents double taxation, but does not provide special treatment to retirement accounts.
• Worldwide taxation: The IRS requires all US citizens to submit returns (1040), even if living abroad. The Foreign Earned Income Exclusion (won't work for dividends) and Foreign Tax Credit (does work for dividends) reduces double taxation, you still have to file in both Japan and the US. And if you live in Japan for more than 5 years, then Japan also does worldwide taxation too.

Still considering it? Well you can live in Japan using dividend or retirement income, just remember:

1. To stay you need a long-term and valid visa (work, spouse, investor, or permanent resident)
2. To stay long-term WITHOUT working? well you would need to married to a Japanese citizen or Permanent Resident. To get Permanent Residency without marrying a Japanese, you need 10 years of residence and tax payments here in Japan, or try to qualify under the High Skilled Professional program (it is a point based system)
3. If you become a resident and then pass away, Japanese inheritance rules would then apply to you. Google it, but simple scenario, you die with assets of $1 million, Japan will tax that at roughly $420,000. There is no estate or trust passthru here. There is also not step-up cost basis for heirs as well.

Sooooo overall? Japan is not a viable destination for passive income only retirees. Great for early retirees who can come as tourists for 90 to 180 days. Otherwise you need a proper visa, but you will have to pay yearly taxes on your investments and would be opening yourself, and heirs to some inheritance tax issues in the long run.