Challenges of Maintaining Highly Skilled Professional Points as a Freelancer#

In the Japanese immigration system, the “Highly Skilled Professional” (HSP) status of residence is a preferential visa category granted to applicants who score 70 points or more based on academic background, professional history, and annual income. While this system is primarily designed with corporate employees in mind, it is not legally impossible for freelancers (sole proprietors) to obtain and maintain this status. However, in practice, freelancers face significant structural hurdles and specific risks regarding point maintenance.

This article objectively explains the difficulties of maintaining HSP status as a freelancer, focusing on the mechanics of the point calculation system.

The Concept and Constraints of the “Contracting Organization”#

The fundamental premise of the Highly Skilled Professional visa is that the applicant must engage in activities “based on a contract with a public or private organization in Japan.” For a typical employee, the employer serves as this “Contracting Organization” (Organization of Affiliation). For a freelancer, the client company with whom they sign a service agreement serves this role.

The first and most significant challenge a freelancer faces is that only remuneration from a specific designated organization is counted towards the point calculation.

Freelancers typically contract with multiple clients to diversify income sources and stabilize their business. However, under the HSP point system, “annual income” is strictly defined as the remuneration received from the primary contracting organization declared to the Immigration Services Agency. Aggregating income from secondary clients or side projects to inflate the point total is generally not permitted.

For example, consider a freelancer with a total annual income of 10 million JPY, derived from Company A (4 million JPY), Company B (3 million JPY), and Company C (3 million JPY). If the freelancer applies with Company A as the sponsoring organization, their annual income for point calculation purposes is only “4 million JPY.” This fragmentation often makes it extremely difficult to meet the high income thresholds required for significant points.

Stability of Income and Risks at Renewal#

The HSP visa requires maintaining the point standard not just at the time of initial approval, but throughout the period of stay. For freelancers, the fluidity of contracts can be fatal.

Loss of Points Due to Contract Termination#

Under an employment contract, labor laws provide protection, making dismissal difficult. In contrast, freelance service agreements can be terminated relatively easily due to project completion or client budget constraints. If the contract with the company designated as the “Contracting Organization” ends, the basis for the applicant’s “annual income” points is immediately lost.

Unless the freelancer promptly secures a new contract with another company offering equivalent or better terms and files for a change of contracting organization, they will likely be deemed to lack sufficient points at the time of the next visa extension application, resulting in the loss of their status.

Income Fluctuation and Minimum Thresholds#

For Highly Skilled Professional (i)(b) (activities corresponding to “Engineer/Specialist in Humanities/International Services”), the visa cannot be granted if the annual income from the contracting organization falls below 3 million JPY, regardless of how many points are earned in other categories.

Furthermore, if a freelance contract is performance-based, proving a guaranteed annual income is difficult. Immigration examinations place heavy emphasis on the “fixed remuneration amount specified in the contract.” Estimated income or bonuses that are not guaranteed are often excluded from the calculation, posing a risk of rejection.

Difficulty in Proving Work Experience#

Years of practical experience significantly impact the point score. For corporate employees, this is easily proven by obtaining a “Certificate of Employment” from past employers.

However, proving periods of freelance activity as valid “practical experience” is much more demanding. Simply claiming “I was a freelancer” is insufficient. Applicants must provide comprehensive documentation, including past contracts, invoices, deliverables, and tax returns, to prove that they were engaged in the specific specialized duties during that period. If the freelance work was conducted overseas, gathering these documents that meet Japanese immigration standards requires substantial effort.

Impact on Transition to HSP (ii) and Permanent Residence#

Many HSP visa holders aim to transition to “Highly Skilled Professional (ii)” (which offers an indefinite period of stay) or obtain “Permanent Residence” after one or three years. Being a freelancer can lead to stricter scrutiny during these applications.

Permanent Residence reviews prioritize the “stability of livelihood.” Freelancers not employed by a specific company are subject to rigorous examination regarding income stability. Even if the freelancer maintains the required points based on the primary contract, if that contract is renewable on a short-term basis (e.g., every 3 months), stability may be questioned.

Additionally, compliance is critical. Unlike employees whose taxes and social insurance are deducted from their salaries, freelancers must manage these payments themselves. A single day of delay in paying National Health Insurance or National Pension premiums can be grounds for denying a Permanent Residence application. The burden of perfect compliance rests entirely on the individual.

Conclusion#

While the Japanese immigration system does not explicitly exclude freelancers from the Highly Skilled Professional visa, the structure is overwhelmingly disadvantageous compared to corporate employment. The inability to aggregate income from multiple clients and the risk of point reduction due to contract termination are the primary concerns.

Therefore, for a freelancer to successfully maintain HSP status, strategic planning is essential. This often involves securing a single, high-paying, long-term service agreement with one primary company that acts as the sponsor. Alternatively, one might consider incorporating a company to apply for the “Business Manager” visa or HSP (Management) category. It is crucial to understand the gap between the flexible working style of a freelancer and the rigid stability requirements of the Highly Skilled Professional system.