I'm Japanese, but I don't live in Japan.

Literal

I [topic-は] Japanese is [but-が], Japan [in-に] am-not-living.

A classic beginner sentence pairing two clauses with the contrastive が. Notice the dative/locative に on 日本に (the destination/location of living) contrasting with the は on 私は (the topic being described). The verb 住む ('live, reside') is one of the change-of-state verbs that takes ている to express the ongoing state of residence, not an action — 住んでいません means 'am not residing,' not 'am not in the process of living.'