Foreign residents in Japan should prepare for significant tax and financial policy changes as the government and ruling coalition finalize their 2025 tax reform proposals. These changes will affect everything from housing loans and cryptocurrency investments to workplace meal benefits and cross-border online shopping. According to NHK, the government plans to extend the mortgage tax deduction system (jūtaku rōn genzei) amid rising housing prices. This extension represents important news for expats considering home purchases in Japan, where property costs have climbed substantially in recent years. More significantly, authorities are developing enhanced support measures specifically targeting used housing purchases, which tend to be more affordable than newly constructed properties. This shift in focus could make homeownership more accessible for foreign residents who have struggled with Japan's expensive real estate market. The mortgage tax deduction allows homeowners to deduct a portion of their housing loan interest from their income taxes, providing substantial savings over the loan period. In workplace benefits, the government is examining increases to the non-taxable limit for employer-subsidized employee meals. Currently, when companies provide cafeteria meals or meal subsidies to workers, amounts exceeding certain thresholds are counted as taxable income. With rising food prices affecting household budgets, raising this limit would provide tangible relief for employees, including foreign workers. This change acknowledges the reality of inflation and aims to preserve the real value of workplace meal benefits without increasing employees' tax burdens. Perhaps most significant for internationally-minded expats, Japan is moving toward treating cryptocurrency income as separate taxation rather than miscellaneous income. According to NHK's reporting, this reform would align crypto taxation with other financial products like stocks and bonds. Currently, cryptocurrency gains face progressive taxation with rates reaching up to 55 percent when combined with other income sources. Under separate taxation, crypto investors would likely pay a flat rate similar to stock trading—typically around 20 percent. This dramatic reduction could make Japan considerably more attractive for cryptocurrency investors and blockchain professionals. The change reflects growing recognition of digital assets as legitimate investment vehicles rather than speculative side income. For online shoppers, significant changes are coming to cross-border e-commerce taxation. The government plans to eliminate the current tax exemption for imported goods valued at 10,000 yen or less, according to NHK. Instead, online marketplace operators will bear responsibility for collecting and remitting consumption taxes on these purchases. This reform targets the rapid growth of cross-border e-commerce (越境EC, ekkyō EC), where consumers purchase directly from overseas retailers. Currently, the exemption creates a tax advantage for foreign sellers over domestic retailers and reduces government tax revenue. Foreign residents who frequently purchase items from overseas websites should expect price increases as the 10 percent consumption tax gets applied to previously exempt purchases. This change aims to level the playing field between domestic and international online retailers. These reforms collectively represent the government's effort to modernize Japan's tax system for contemporary economic realities. The housing measures address affordability concerns, the meal benefit adjustment responds to inflation, the cryptocurrency reform acknowledges digital economy growth, and the e-commerce changes close tax loopholes in an increasingly borderless retail environment. Foreign residents should monitor these developments as they move through Japan's legislative process. While the government and ruling parties are coordinating on these proposals, final details and implementation timelines will emerge as the 2025 tax reform package takes shape. Expats planning major financial decisions—whether buying property, investing in cryptocurrency, or budgeting for online purchases—should consider how these changes might affect their personal finances in the coming year.