6 Little-Known Niche Subsidies & Grants in Japan (High Acceptance)

This is an English translation of our Japanese article. Rules and figures may change; the Japanese version and official sources are authoritative.
Sole proprietors, SMEs, and employees

6 little-known niche subsidies and grants: why acceptance rates are high yet applicants are few

The three programs — the IT Introduction Subsidy, the Sustainability Subsidy, and the Monozukuri (Manufacturing) Subsidy — are widely known, but Japan has many other subsidies and grants that are almost always paid out if you meet the requirements, yet have extremely low public awareness. This article explains 6 programs that are "low-profile but easy to actually get money from," along with eligibility conditions, amounts, and tips for applying.

Why niche subsidies have high acceptance rates

Competition is determined by "number of applicants ÷ number of acceptance slots." Even if the subsidy ceiling is large, the acceptance rate rises when there are few applicants. Low-profile subsidies have a structure where "only those who know about them benefit."

1. Business Improvement Grant

Business Improvement Grant: up to ¥6,000,000 for wage increases × capital investment

Ministry of Health, Labour and Welfare SMEs and small businesses
Awareness
Ease of receiving
Maximum amount ¥6,000,000
OverviewGrants SMEs and small businesses that raise the minimum wage within their workplace by a set amount or more toward the cost of capital investment and the like made to improve productivity
Subsidy ceilingWage increase of ¥30 → ¥300,000 / ¥45 → ¥1,500,000 / ¥60 → ¥3,000,000 / ¥90 or more → ¥6,000,000[MHLW (in Japanese)]
Subsidy rate3/4 (9/10 when the productivity requirement is met or for small businesses)
Eligible equipmentPOS registers, automatic dishwashers, serving robots, conveyance systems, tablets, PCs, etc. (things that contribute to improving productivity)
Eligible businessesSMEs and small businesses (those whose in-workplace minimum wage is within ¥30 of the regional minimum wage)
Application deadlineEnd of the fiscal year (every year; in the order of grant application → equipment introduction → completion report)
Why there are few applicants: The hurdle "you can't apply unless you raise the minimum wage" becomes a psychological barrier, but every business deals with minimum-wage increases each year, and by simply applying at the timing of the increase you can get 3/4 of your capital-investment cost. Utilization records are relatively high in the food-service, retail, and nursing-care industries.

2. Business Succession and Handover Subsidy (Expert Utilization Category)

Business Succession and Handover Subsidy: up to ¥6,000,000 subsidy for M&A costs

Small and Medium Enterprise Agency Both buyers and sellers
Awareness
Ease of receiving
Maximum amount ¥6,000,000
OverviewA program that subsidizes M&A advisory fees, due-diligence costs, brokerage fees, etc. involved in the M&A (business succession or sale) of an SME
Types of category(1) Expert Utilization Category (M&A expert fees) (2) Management Innovation Category (new business after succession) (3) Business-Closure and Re-challenge Category (business-closure costs)
Expert Utilization Category ceilingBuyer: up to ¥6,000,000 (subsidy rate 2/3) / Seller: up to ¥6,000,000 (subsidy rate 2/3)
Eligible expensesM&A advisor fees, FA (financial advisor) fees, due-diligence (DD) costs, attorney fees, etc.
Eligible partiesSMEs planning a business succession or M&A (both buyers and sellers can apply)
Acceptance rateRoughly 50–70% (the quality of the business plan makes the difference)
Why there are few applicants: People tend to think "this has nothing to do with me," but it can also be used for the handover of a small-scale business (a restaurant, a beauty salon, the succession of a craftsman's skills). M&A is not only for large companies; it can also apply to cases where a sole proprietor sells or buys a shop. The Business-Closure and Re-challenge Category (up to ¥1,500,000) can also be used for business-closure costs (inventory disposal, demolition costs, etc.), so you can receive it almost just by applying.

3. Relocation Support Grant (Tokyo area → regional relocation)

Relocation Support Grant: up to ¥1,000,000 + a child add-on for relocating from the Tokyo area to a rural area

Cabinet Office / Regional Revitalization Employees and freelancers also eligible
Awareness
Ease of receiving
Maximum amount ¥1,000,000 per household + child add-on
OverviewA regional-revitalization program that pays cash to people who relocate from the Tokyo area (Tokyo, Kanagawa, Saitama, Chiba) to a municipality in a targeted region
Payment amountSingle person: ¥600,000 / Household of 2 or more: ¥1,000,000 / +¥1,000,000 per child under 18 (from April 2024)[Cabinet Office (in Japanese)]
Employment requirementAny one of: (1) take a job in a targeted job opening at the destination, (2) continue teleworking (remote work) at the destination, or (3) start a business while receiving a startup support grant
Telework requirement detailsWhile maintaining your current job at a Tokyo-area head office, relocate to a rural area and telework 3 or more days a week. It is on a notification basis and requires your employer's agreement
Residence-continuation requirementIf you leave within 5 years of relocating, you must repay part of the amount (full amount for 1 to under 3 years; half for 3 to under 5 years)
Where to applyThe counter of the destination municipality (the targeted regions and detailed rules differ by local government)
Households with many children are especially favored: For example, a family of four (two children) that relocates to Matsumoto City, Nagano Prefecture may be able to receive a cash payment of ¥1,000,000 per household + a ¥2,000,000 child add-on = a total of ¥3,000,000 (the ceiling and conditions differ by municipality, so always confirm in advance). A strength for teleworkers is that they can receive it while maintaining their income even after relocating.
The relocation support grant you receive is taxable

The relocation support grant is taxed as temporary income (it is non-taxable if within the ¥500,000 special deduction for temporary income). In addition, there may be a separate relocation support grant unique to the local government, and in some cases you can receive it together with the national grant.

4. Human Resources Development Grant (Investment-in-People Promotion Course)

Human Resources Development Grant: up to 70% subsidy for employee training costs

Ministry of Health, Labour and Welfare SMEs enrolled in employment insurance
Awareness
Ease of receiving
Maximum subsidy rate 70% of costs
OverviewGrants training costs (OFF-JT) for employees' skill improvement and digital-talent development. Subscription-type flat-rate training services are also eligible
Investment-in-People Promotion CourseTargets growth fields such as digital and green, and advanced skills training. The subsidy rate is higher than for general training
Subsidy rate (SMEs)Off-JT cost subsidy: 45–70% / wage subsidy: ¥960 per hour
Flat-rate training servicesThe cost of subscription-type services such as Udemy and LinkedIn Learning is also eligible (45–60% subsidy). There is a per-person ceiling
Eligible trainingWork-related training in IT, AI, DX, green, management, languages, etc. External training companies, e-learning, etc.
Where to applySubmit a plan notification to the prefectural Labour Bureau (Hello Work) before the training starts (prior application required)
Why there are few applicants: Many business owners feel a hurdle in the point that "a prior training plan notification is required," but the procedure itself is not difficult. If you plan to have employees take training, you should actively use this as a program that returns up to 70% of that cost. Since 2024, when subscription-type services such as Udemy also became eligible, its usability improved greatly.

5. Trial Employment Grant (General Trial Course)

Trial Employment Grant: ¥40,000/month × up to 3 months for trial hiring

Ministry of Health, Labour and Welfare All businesses enrolled in employment insurance
Awareness
Ease of receiving
Maximum amount ¥120,000 per person
OverviewGrants ¥40,000 per month when, on a referral from Hello Work or the like, you take on a job-seeker who has difficulty finding work (a job-seeker anxious about employment) as a "trial hire" for up to 3 months
Grant amount¥40,000/month × up to 3 months = up to ¥120,000 (per person). You can receive it for the number of people hired
Eligible job-seekersPeople whose job search is not going well (the long-term unemployed, those wishing to change to a different industry, those wishing to return to work after child-rearing, etc.)
Flow of use(1) Post a job opening with Hello Work → (2) Hello Work refers it as trial employment → (3) hire and apply for the grant during the trial period
Points to noteA referral via Hello Work is required. It is a prerequisite that the job listing states that trial employment is possible
You can greatly lower hiring risk: This is a program where you can even receive a ¥40,000 monthly grant while bearing the risk that "the hire turned out not to be a good fit." Even a sole proprietor can use it if they employ workers (have enrolled them in employment insurance). It is especially recommended for businesses looking for talent via Hello Work without spending on hiring costs.

6. Advanced Energy-Saving Investment Promotion Support Project (SHIFT Project)

SHIFT Project (energy-saving subsidy): up to ¥100 million for introducing energy-saving equipment

Ministry of the Environment SMEs and large companies
Awareness
Ease of receiving
Maximum amount Up to ¥100 million (¥200 million in some cases)
OverviewThe Ministry of the Environment subsidizes the cost of upgrading to energy-saving equipment (LED, high-efficiency air conditioning, compressors, etc.) in factories, buildings, shops, and the like. You can achieve both electricity- and fuel-cost reductions and decarbonization at the same time
Subsidy rate1/3 to 1/2 of equipment costs (varies by planned energy-saving rate and business scale)
Subsidy ceilingSMEs: up to ¥100 million (¥200 million under specific requirements) / large companies: up to ¥300 million[Ministry of the Environment SHIFT (in Japanese)]
Eligible equipmentLED lighting, high-efficiency air conditioning, energy-saving refrigerators/freezers, compressors, boilers, transformers, elevator upgrades, etc.
Mandatory requirementBefore applying for the subsidy, undergo an "energy diagnosis" and estimate the energy-saving effect (part of the diagnosis cost is also eligible)
Where to applyApply via the "Regional Platform for Energy-Saving Consultation" commissioned by the Ministry of the Environment
Why there are few applicants: It tends to be overlooked because it is a subsidy from the "Ministry of the Environment" rather than the Ministry of Economy, Trade and Industry. Amid continuing electricity-price surges, 1/3 to 1/2 of the equipment-upgrade cost is subsidized and running costs also fall, so the effective ROI is very high. A large effect can be expected in particular in the food-service, manufacturing, logistics, and retail industries (industries with a lot of refrigeration equipment).

3 ways to find subsidies you can use

Mirasapo plus (SMRJ)

A free public database that lets you search across subsidies and grants by industry, prefecture, and free keyword. It covers national, prefectural, and municipal programs and also has an application-deadline alert function.

Consult a Society of Commerce and Industry or Chamber of Commerce and Industry

Through a free expert consultation, you can be told "the subsidies this business can use." Issuance of the business support plan for the Sustainability Subsidy can also be done at the same counter. It is also rich in locally rooted information on municipal subsidies.

J-Net21 (SMRJ)

Displays subsidies currently open for applications in a list by category and region. It organizes the key points of each subsidy in an easy-to-understand way, and you can also refer to sample ways of writing the application.

Subsidy information has an "application period," and often the deadline is over by the time you notice

Subsidies have a set application period each year, and you cannot apply outside the application period. It is important to register for the email newsletters of Mirasapo plus or the Chamber of Commerce and Industry and to make a habit of checking information regularly.

Summary: a list of the 6 programs

ProgramMaximum amountEligible partiesScreening
1. Business Improvement Grant ¥6,000,000 SMEs and small businesses (planning a wage increase) Requirement type (almost certain)
2. Business Succession and Handover Subsidy ¥6,000,000 SMEs considering M&A (buyers and sellers) Acceptance type (acceptance rate 50–70%)
3. Relocation Support Grant ¥1,000,000 + child add-on Individuals/households relocating from the Tokyo area to a rural area (telework OK) Requirement type (almost certain)
4. Human Resources Development Grant 70% of costs Businesses enrolled in employment insurance (employee training) Requirement type (almost certain)
5. Trial Employment Grant ¥120,000/person Businesses that hire via Hello Work Requirement type (almost certain)
6. SHIFT Project (energy-saving subsidy) ¥100 million (¥200 million in some cases) SMEs to large companies introducing energy-saving equipment Acceptance type (acceptance rate somewhat high)
There are cases where you can apply for multiple subsidies at the same time

Many subsidies have a rule against "combining with other subsidies," but if the purposes differ you can apply for them separately. For example, there are cases where you can apply in parallel for "introducing accounting software with the IT Introduction Subsidy" + "DX training for employees with the Human Resources Development Grant" + "labor-saving equipment with the Business Improvement Grant." If you are considering multiple applications, we recommend consulting a Chamber of Commerce and Industry or a labor and social security attorney.

FAQ

Where do I look for niche subsidies?

You can search on the national "Mirasapo plus," J-Net21, and the sites of each ministry/agency, local government, and Chamber of Commerce and Industry. Because there are application periods and budget caps, frequent checking and obtaining a GBizID in advance are recommended.

Is there tax on subsidies I receive?

Subsidies and grants received by a business are, in principle, included in income and subject to tax. National treasury subsidies and the like applied to acquiring fixed assets can defer taxation through compression bookkeeping (asset write-down accounting).

What are the common points to note when applying?

As a rule, orders, contracts, and payments made before the grant decision (acceptance) are ineligible, and many are on a reimbursement basis. Because requirements and application periods change, always check the latest application guidelines.