A comfortable retirement works out cheaper in Cambodia — around £1,400/month for a couple, versus £2,500 in Japan (about 44% more).
Cost of living, side by side
| Cambodia | Japan | |
|---|---|---|
| Modest (couple/mo) | £850 | £1,650 |
| Comfortable (couple/mo) | £1,400 | £2,500 |
| Premium (couple/mo) | £2,400 | £3,900 |
Indicative monthly estimates for a couple — real costs vary by location, lifestyle and exchange rates.
Cambodia: Foreigners can own condominium units outright with a strata title, on the first floor and above, capped at 70% of any building and not within 30km of a land border. Land itself cannot be foreign-owned, so houses and villas are taken on long leases (commonly up to 50 years) or through a majority-Cambodian company.
Japan: Foreigners have the same rights as Japanese nationals and can buy land, houses and apartments freehold, with no residency or visa requirement. From April 2026 buyers must disclose nationality at registration (a record-keeping step, not a restriction), and a small number of plots near defence sites can be reviewed.
Cambodia: Most retirees use the ER ('retirement') extension of an ordinary E-class visa: broadly for those aged 55+ who are retired, it is inexpensive and renewable yearly, needing proof of retirement and funds rather than a fixed deposit.
Japan: Japan has no dedicated retirement visa. Self-funded retirees typically use a long-term 'Designated Activities' stay, broadly needing substantial savings (around ¥30 million) or steady pension income of roughly ¥250,000 a month; spouse and family routes are also common.
Cambodia: Public healthcare is limited and private clinics in Phnom Penh and Siem Reap, while improving, still send serious cases to Bangkok or Singapore — so international insurance with medical-evacuation cover is strongly advised. Routine care is cheap and largely cash-based.
Japan: Healthcare is excellent and universal — residents on a long-stay visa enrol in National Health Insurance, paying income-based premiums and then about 30% of costs (less for the elderly), with high-quality hospitals nationwide. Care is affordable by Western standards, though English can be limited outside the major cities.
Cambodia: Cambodia operates a territorial system, so a foreign pension is generally not taxed; even resident retirees typically find foreign-source pension income falls outside the local net, while local earnings are taxed progressively up to 20%. Declare your status and take advice to be sure.
Japan: For your first five years as a Japanese tax resident you count as a 'non-permanent resident', so foreign income such as a UK pension is taxed only to the extent you remit it into Japan; after five years Japan taxes your worldwide income. Rates are progressive (national 5-45%, plus a flat ~10% local inhabitant tax), and the UK-Japan treaty helps avoid double taxation.
Cambodia: Tropical and warm all year; the dry season (November-April, coolest November-January) is most comfortable, followed by a hot spell and a May-October monsoon. Generally safe and friendly, though watch for bag-snatching and chaotic traffic; English is widely spoken in expat and tourist areas, the US dollar is used day-to-day, and driving is on the right.
Japan: Four distinct seasons: hot, humid summers with a June-July rainy spell and late-summer typhoons, and cold, often snowy winters on the north and Japan Sea side. Spring cherry blossom (late March-April) and crisp autumn colour (October-November) are the best months. Extremely safe with very low crime; English is limited outside big cities and tourist areas, but they drive on the left, which is familiar for Brits, and daily life runs smoothly once you settle in.
Cambodia: Expect a 4% transfer tax on the government-assessed value for a strata-title condo, plus registration and legal fees and any title-upgrade cost; US dollars are used, which keeps transactions simple. Foreigners buy condo units (not land), and registration can take some weeks.
Japan: Budget roughly 6-10% in one-off costs whether you're foreign or not — Japan adds no buyer surcharge for foreigners — covering agent commission (about 3% plus a fixed fee), a real-estate acquisition tax of around 3% of assessed value, registration and licence tax, stamp duty and a judicial scrivener's fee. A purchase typically completes within one to two months.
Cambodia: Phnom Penh for the widest amenities and healthcare, temple-rich Siem Reap for a calmer pace, and riverside Kampot with seaside Kep in the south for laid-back living, all with established expat pockets.
Japan: Tokyo for energy, amenities and top hospitals; Fukuoka for a mild, affordable, walkable base popular with newcomers; Kyoto for culture and history; and subtropical, laid-back Okinawa — with cheap rural 'akiya' houses dotted across the countryside.
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