The City of Yokohama is offering subsidies to startups, scaleups, and advanced technology companies that lease office space to establish or expand operations in the city. Under the FY2026 Next-Generation Strategic Sector Location Promotion Subsidy, companies in designated growth sectors that open their first site in Yokohama can receive up to ¥2 million, and tech startups can receive up to ¥1 million. Companies already located in Yokohama that expand or relocate their headquarters or R&D facilities within the city can receive up to ¥1 million.

The program focuses on growth sectors such as decarbonization, AI, and semiconductors. Its aim is to attract companies that contribute to the sustainable growth of the local economy and to build a cluster of technology startups in Yokohama.

Why Yokohama?

Yokohama is Japan’s second-largest city, located approximately 30 minutes from central Tokyo and close to Haneda Airport. The city is home to the R&D centers of many Japanese and global companies, with a particularly high concentration in the Minato Mirai 21 district, and offers established networks connecting startups with local corporations, universities, and research institutions. The city also boasts a vibrant international community and highly rated quality of life.

Eligible Sectors

• AI and Semiconductors: AI-based technologies; semiconductor manufacturing equipment, devices, and design tools; integrated circuits; semiconductor inspection, evaluation, and analysis equipment; related components and materials
• Decarbonization: Renewable energy (solar, wind, geothermal, tidal, biomass); non-fossil energy (hydrogen, e-fuels, ammonia, fusion power); next-generation batteries and power management; fuel cells; smart grid equipment and systems; circular economy; carbon recycling and CCS; alternative materials for rare metals and rare earths
• Mobility (excluding fossil fuel-based): Autonomous driving and driver assistance; traffic safety and road system digitalization; next-generation vehicles, parts, and accessories; environmentally adapted aircraft; drones, personal mobility, and green slow mobility
• IT and Telecommunications: Embedded, packaged, custom, and game software; 5G and 6G research and development; communications equipment; computers and peripheral equipment
• Health and Medical: Pharmaceuticals; medical devices and equipment; medical and nursing-care robotics; biosensors; analytical instruments; DNA analysis and genetic testing services
• Advanced Technology: Micromachines, lasers, robotics, space equipment, plant equipment, new materials, and quantum technology

Eligible businesses must be recognized by the City as contributing to the local economy.

Subsidy Details

For companies establishing their first site in Yokohama

This category applies to companies based outside Yokohama that open their first headquarters, R&D facility, or office (such as a branch or sales office) in the city.

Requirements for general companies are reduced in the following cases:

• Locating outside central Yokohama: Companies establishing a site outside the four central districts (Minato Mirai 21, Yokohama Station area, Kannai area, and Shin-Yokohama) need a floor area of 50㎡ or more and at least 1 employee.
• Foreign-affiliated companies making their first investment in Japan: Foreign-affiliated companies with no existing office or facility in Japan need a floor area of 50㎡ or more (10㎡ or more for a serviced office contract) and at least 1 employee.

For Yokohama-based companies expanding or relocating within the city

This category applies to companies that already have a site in Yokohama and expand or relocate their headquarters or R&D facility within the city. It also covers moving a headquarters or R&D facility from outside the city into Yokohama, or establishing a new headquarters or R&D facility in the city.

Tech startup requirements

To qualify as a tech startup, a company must meet all three of the following:

1. It has closed at least one fiscal year and was founded within the last 15 years.
2. It has a fundraising track record, such as investment from a member of the Japan Venture Capital Association, a fund backed by the Organization for Small & Medium Enterprises and Regional Innovation (SMRJ) or Japan Investment Corporation (JIC), or a venture capital firm registered with TECH HUB YOKOHAMA. Equivalent investment received overseas, or funding from public grant programs for deep tech startups, is also accepted.
3. It has an R&D track record, such as certification as a university or research institute spinout, documentation from a university, research institute, or corporate R&D division confirming that the business is based on its research, or R&D expenses equal to 5% or more of sales in the most recent fiscal year.

Key Conditions

• Eligible facilities: Headquarters, R&D facilities, and offices such as branches and sales offices. Factories, warehouses, and retail stores are not eligible. Storage areas, showrooms, retail and dining spaces, production areas, and residential areas are excluded from the eligible floor area.
• Employees: Only directly employed staff covered by Japanese employment insurance are counted.
• Lease agreements: The site must be leased. Serviced office contracts are accepted only for tech startups and foreign-affiliated companies making their first investment in Japan, and the space must allow corporate registration and be a lockable private room or other dedicated space.
• Financial review: The City reviews financial statements for the two most recent fiscal years. Companies with negative net worth for two consecutive years are generally not eligible.
• Two-year operating requirement: Subsidized companies must continue operations at the site for two years from the start of business and submit an annual status report. Companies that do not meet these obligations must repay the subsidy with an additional charge of 10.95% per year.
• Other programs: This subsidy cannot be combined with incentives under the Yokohama Corporate Location Promotion Ordinance or the Circular Business Location Promotion Subsidy.
• Budget: If total applications exceed the program budget, subsidy amounts will be reduced proportionally. The City may also close intake early if it receives a large number of applications.

Application Process and Schedule

Companies must submit a Business Plan Summary before signing a lease agreement. Companies that have not submitted the Business Plan Summary by the day before signing are not eligible to apply. Please contact the City of Yokohama before entering into any contract.

1. Submit a Business Plan Summary: By December 28, 2026, and no later than the day before signing the lease
2. Start business operations: Between January and December 31, 2026
3. On-site inspection by City staff: After operations begin, by December 2026
4. Submit the subsidy application: In principle within one month of starting operations, with a final deadline of January 29, 2027
5. Review and notification of approval: February to March 2027
6. Submit the payment request form: February to March 2027
7. Subsidy disbursement: March 2027, by transfer to the designated bank account
8. Public announcement of recipients: March 2027

The schedule is subject to change.

Additional Support for Decarbonization Companies

Small and medium-sized enterprises that receive this subsidy in the decarbonization sector and make the City’s Decarbonization Commitment Declaration can access preferential interest rates and credit guarantee fee subsidies through the City’s Decarbonization Yokohama Fund, a loan program for small and medium-sized enterprises.

Official Documents

For full program details, please refer to the official documents below:

• FY2026 Program Guide (English)
• FY2026 Program Guide (Japanese)
• Official program page (Japanese)
• FY2025 subsidy recipients (Japanese)

Contact

Yokohama is ready to support your growth in Japan and the broader Asian market. For consultation or questions regarding eligibility, please contact:

City of Yokohama Economic Affairs Bureau, Corporate Investment Division Phone: +81-45-671-2594 Email: ke-kigyo@city.yokohama.lg.jp

Or your local Yokohama Global office: https://businessyokohama.com/contact/