How to Send Money to Japan for Property Purchase: WISE, Bank Transfers & Costs

Introduction

One of the largest practical hurdles facing foreign buyers of Japanese real estate is deceptively simple: how do you actually get the money into Japan?

For residents with Japanese bank accounts, the answer is straightforward. For non-residents — the majority of foreign property investors — the process involves navigating international transfer services, unfamiliar banking requirements, regulatory reporting obligations, and currency risk that can add hundreds of thousands of yen to the total cost of a transaction.

The stakes are real. A poorly chosen transfer method on a ¥40,000,000 property can cost an additional ¥750,000 or more compared to the most efficient alternative. Timing errors can delay closings. Incomplete documentation can trigger compliance reviews that freeze funds for days or weeks.

This guide covers every aspect of the process: the bank account problem for non-residents, a detailed comparison of transfer methods with real cost examples, FEFTA reporting requirements for large transfers, currency risk management strategies, and a step-by-step payment timeline aligned with the Japanese property transaction process.

The Bank Account Problem for Non-Residents

Why You Need a Japanese Bank Account

A Japanese bank account serves multiple functions in a property transaction and beyond:

• Receiving purchase funds: The seller, judicial scrivener (司法書士 / shihō shoshi), or agent needs a designated account to receive your payment
• Post-purchase payments: Fixed asset tax (固定資産税 / kotei shisan zei), condominium management fees (管理費 / kanrihi), repair reserve funds (修繕積立金 / shuzen tsumitatekin), and utility bills all require a domestic payment method
• Sale proceeds: If you sell the property in the future, the proceeds are deposited into a Japanese account

Why Non-Residents Cannot Open Accounts

Most Japanese banks require all of the following to open a personal account:

• A valid residence card (在留カード / zairyū kādo) — issued only to foreign nationals with a valid visa and registered Japanese address
• A My Number (マイナンバー) — Japan's individual tax identification number, which is issued upon establishing residency
• An in-person visit to a branch in Japan

These requirements reflect Japan's strict anti-money laundering (AML) and Know Your Customer (KYC) regulations, which have tightened considerably in recent years. The practical result is clear: foreign nationals without a valid residence status in Japan cannot open a standard bank account.

Banks and Non-Resident Account Access

Legend: ◎ Full support | ○ Partial | △ Limited | ✕ Not available

How to Buy Without a Japanese Bank Account

The absence of a bank account does not prevent you from purchasing property. Several established mechanisms exist:

• Judicial scrivener trust account (司法書士の預り金口座): Your judicial scrivener maintains a professional trust account that can receive international transfers. Funds are held in escrow and disbursed to the seller at closing. This is the most common approach for non-resident buyers.
• Agent's designated account: Some real estate agencies maintain designated accounts that can receive buyer funds on behalf of the transaction.
• Direct transfer to seller: In some cases, funds are wired directly to the seller's account, with the judicial scrivener coordinating the timing and verification.

For post-purchase recurring costs — property tax, management fees, utilities — non-resident owners typically arrange payment through a property management company or tax representative (納税管理人 / nozei kanrinin) who handles domestic payments on their behalf.

Money Transfer Methods Compared

WISE (Formerly TransferWise)

Advantages:

• The most favorable exchange rate available to retail customers — banks typically add a 1–3% markup to the interbank rate, while WISE uses the mid-market rate with no hidden margin
• Transparent fee structure displayed before confirming the transfer
• Entire process can be completed online
• Multi-currency account allows holding JPY balances

Important considerations:

• Per-transaction limits may require splitting large transfers across multiple transactions
• The receiving account must be a Japanese bank account — either your personal account, the judicial scrivener's trust account, or an agent's designated account
• Large transfers for real estate purchases may trigger WISE's compliance review process, which can add 1–3 days. Proactively providing purchase documentation (sale contract, agent contact) can expedite this.

Bank Wire Transfer (SWIFT)

Advantages:

• Accommodates very large transfers (tens of millions of yen to hundreds of millions) without per-transaction limits
• Creates a formal bank-to-bank record that is useful for subsequent FEFTA reporting and tax documentation
• Can be sent to corporate accounts, trust accounts, and individual accounts without restriction

Important considerations:

• The total cost is significantly higher than WISE, primarily due to the exchange rate markup rather than the explicit fees
• Intermediary (correspondent) bank charges are often deducted from the transfer amount, meaning the recipient receives less than the stated amount
• Your sending bank may require documentation of the transfer's purpose — "real estate purchase" with supporting contract details

Other Transfer Methods

Cost Comparison: Real Examples

Using actual MLIT transaction data from JRE, here are concrete cost comparisons for real property purchases.

Example: Shinjuku 30m² Condo — ¥39,333,330

Based on the median transaction price for 30m² condominiums in Shinjuku. At an exchange rate of ¥150/USD, this equals approximately $262,222.

The difference between WISE and an average bank wire: approximately $5,000 (¥750,000).

That is enough to cover nearly three years of condominium management fees — lost entirely to unnecessary transfer costs.

View Shinjuku transaction data →

Example: Niseko Resort Condo — ¥25,000,000

Approximately $166,667 at ¥150/USD.

View Niseko transaction data →

Example: Roppongi 30m² Condo — ¥57,750,000

Approximately $385,000 at ¥150/USD.

The higher the property price, the more significant the choice of transfer method becomes.

View Roppongi transaction data →

FEFTA Reporting for Money Transfers

The ¥30,000,000 Transfer Reporting Threshold

Under the Foreign Exchange and Foreign Trade Act (外国為替及び外国貿易法 / gaikoku kawase oyobi gaikoku bōeki hō), commonly known as FEFTA, transfers from non-residents to Japan exceeding ¥30,000,000 trigger a mandatory reporting obligation.

Key points:

• This is a bank-side obligation — the receiving Japanese bank reports the transfer to the Ministry of Finance (財務省 / Zaimushō). The buyer is not required to file a separate transfer report.
• However, the receiving bank will contact the buyer (or the account holder) to confirm the purpose of the transfer. Clearly stating "real estate purchase funds" (不動産購入資金) with supporting documentation (purchase contract, agent contact details) ensures smooth processing.
• Transfers intentionally split to avoid the ¥30,000,000 threshold (structuring) may trigger additional compliance scrutiny.

Separate FEFTA Property Acquisition Report

The transfer reporting requirement is distinct from the FEFTA property acquisition report (Form 22), which is a separate obligation for non-residents acquiring real estate in Japan.

• Who: All non-resident buyers of Japanese real estate (from April 2026, including residential properties)
• Deadline: Within 20 days of the purchase date
• Filed with: Bank of Japan (日本銀行)

These are two separate obligations — one triggered by the money transfer, the other by the property acquisition itself.

• FEFTA 2026 Reporting Requirements →
• Form 22 Filing Guide →

Preserving Transfer Records

Maintain complete records of every transfer related to your property purchase:

• Transfer instructions and confirmations from your bank or WISE
• Exchange rate documentation showing the rate applied to each transfer
• Receiving bank confirmations showing the JPY amount received
• Fee receipts from all parties (sending bank, intermediary, receiving bank)

These records serve three critical purposes: supporting your FEFTA report, documenting the acquisition cost (取得費 / shutokuhi) for tax returns, and calculating capital gains accurately if you sell the property in the future.

Currency Risk Management

The Reality of Exchange Rate Volatility

The USD/JPY exchange rate can move 20–30% within a single year. Recent history illustrates the magnitude:

• 2022: USD/JPY moved from 115 to 150 — a 30% depreciation of the yen that made Japanese property dramatically cheaper in dollar terms
• 2023–2024: Ranged between 130 and 160
• 2025–2026: Trading in the 140–160 range

For a $262,000 property purchase, a 10% adverse exchange rate movement represents approximately $26,000 — a cost that dwarfs any differences in transfer fees.

Predicting exchange rate direction is, for practical purposes, not possible with any reliability. Risk management is therefore about reducing exposure to adverse movements, not timing the market.

Hedging Strategies

Staged transfers (分割送金): Rather than converting the entire amount at a single exchange rate, transfer funds in multiple installments over weeks or months. This averages out your exchange rate, reducing the impact of any single adverse movement. This is the simplest and most accessible approach.

Forward contracts (為替予約 / kawase yoyaku): Services like OFX offer forward contracts that lock in an exchange rate for a future date. If you know you will need ¥40,000,000 in 60 days, you can fix the rate today and eliminate uncertainty. This is particularly useful between contract signing and closing.

Early JPY accumulation: If you can open a Japanese bank account (or hold JPY through WISE's multi-currency account), convert funds opportunistically when rates are favorable, building a JPY reserve before you identify a specific property.

Budget buffer: Regardless of strategy, include a 5–10% currency buffer in your property budget. If your target property costs ¥40,000,000, ensure you have access to ¥42,000,000–¥44,000,000 in equivalent foreign currency to absorb adverse movements.

Step-by-Step Payment Timeline

The movement of funds follows a predictable timeline aligned with the Japanese property transaction process.

Phase 1: Before Property Search

• Decide on your transfer method (WISE, bank wire, OFX)
• Open and verify accounts with your chosen service — WISE and OFX require identity verification that can take 1–2 weeks
• If possible, begin the process of opening a Japanese bank account (see bank access table above)
• Confirm your sending bank's international wire transfer capabilities and any documentation requirements

Phase 2: Purchase Application (買付証明書 / kaitsuke shōmeisho)

• No funds need to be transferred at this stage
• The purchase application is a statement of intent, not a financial commitment
• Begin preparing your transfer — confirm the receiving account details with your agent or judicial scrivener

Phase 3: Contract Signing (7–10 days after accepted offer)

• Earnest money (手付金 / tetsuke-kin): Typically 5–10% of the purchase price
• Transfer must arrive by the contract date — allow 3–5 business days for international transfers
• Example: On a ¥39,333,330 property, earnest money is ¥2,000,000–¥4,000,000

Phase 4: Closing and Delivery (1–2 months after contract)

• Balance payment (残金 / zankin): Purchase price minus earnest money
• Transaction costs: Agent commission, registration tax (登録免許税 / tōroku menkyo zei), judicial scrivener fees, and other closing costs
• Total funds needed: approximately 106–110% of the purchase price
• Japan Property Buying Costs & Fees →

Phase 5: Post-Purchase

• Establish payment arrangements for recurring costs: property tax (4 installments/year), management fees (monthly), utilities
• Non-residents: appoint a tax representative (納税管理人 / nozei kanrinin) who will receive tax notices and arrange payments
• Set up standing transfer instructions or arrange payment through your property management company

Post-Purchase Payments: How Non-Residents Pay Ongoing Costs

After the purchase closes, non-resident owners face a continuing need to make payments in Japan without a Japanese bank account. Established solutions include:

• Property management company (管理会社 / kanri gaisha): The management company receives international transfers from the owner and distributes payments to the condominium association, utility companies, and tax authorities. This is the most common solution for non-resident owners.
• Tax representative (納税管理人 / nozei kanrinin): Legally required for non-residents who own taxable property in Japan. The tax representative receives property tax notices and arranges payment on your behalf. A judicial scrivener, tax accountant (税理士 / zeirishi), or management company can serve in this role.
• Periodic international transfers: Schedule regular transfers via WISE or similar services to fund ongoing obligations. Quarterly transfers aligned with property tax due dates are a common cadence.
• Japanese bank account (if obtained): If you have managed to open an account, set up automatic debits (口座振替 / kōza furikae) for recurring payments.
• Credit card payment: Some utility providers and services accept international credit cards, though this is not universal.

Frequently Asked Questions

Can I buy property in Japan without a Japanese bank account?

Yes. Funds can be transferred to the judicial scrivener's trust account (司法書士の預り金口座) or the agent's designated account. This is a well-established mechanism used by the majority of non-resident buyers. However, having a Japanese bank account makes post-purchase recurring payments — property tax, management fees, utilities — significantly easier to manage.

Is there a limit on how much money I can send to Japan?

There is no legal upper limit on the amount of money that can be transferred to Japan. However, transfers exceeding ¥30,000,000 trigger a mandatory bank report to the Ministry of Finance under FEFTA. Individual transfer services like WISE may have per-transaction limits (typically around $1,000,000 equivalent for USD→JPY), which can be addressed by splitting the transfer across multiple transactions.

Should I convert to yen before or during the purchase?

If you have access to a Japanese bank account or a JPY-denominated holding (such as WISE's multi-currency account), converting in stages when exchange rates are favorable — rather than in a single large conversion — reduces currency risk. If you do not have this option, you will convert at the prevailing rate at the time of each payment (earnest money, balance, fees). Budget a 5–10% currency buffer to protect against adverse movements.

What happens if the exchange rate moves against me between contract and closing?

This is a genuine and material risk. The period between contract signing and closing is typically 1–2 months — enough time for exchange rates to move significantly. On a ¥40,000,000 property, a 5% adverse move represents approximately ¥2,000,000 in additional cost. Strategies to manage this include using a forward contract to lock in a rate, maintaining a currency buffer in your budget, or transferring the closing balance early and holding it in the receiving account.

Do I need to report the source of my funds?

Japanese banks, judicial scriveners, and real estate agents may request proof of the funds' source (残高証明書 / zandaka shōmeisho or bank statements showing the origin of the funds). This is standard anti-money laundering compliance, not unique to foreign buyers. Maintain clear documentation of your fund sources — employment income, investment proceeds, property sale proceeds — and have it readily available.

Can I pay in cash?

Technically possible for very small purchases, but impractical and inadvisable for most property transactions. Carrying more than ¥1,000,000 in cash into Japan requires a customs declaration (支払手段等の携帯輸出・輸入申告書). Large cash transactions also raise compliance concerns for the receiving party. Bank transfers provide the documentation trail that all parties in the transaction require.

Related Articles

• Japan Property Buying Costs & Fees: Complete Breakdown →
• FEFTA 2026: Foreign Investor Reporting Requirements →
• FEFTA Form 22: Step-by-Step Filing Guide →
• Which Banks Offer Mortgages to Foreigners in Japan →
• Japan Mortgage for Foreigners: Complete Guide →
• Japan Property Tax Guide for Foreign Investors →
• Compare Real Transaction Prices Across 20+ Areas →

Disclaimer

This article is for informational purposes only and does not constitute financial or legal advice. Exchange rates, bank policies, transfer limits, fees, and regulatory requirements change frequently. Transfer cost examples are illustrative and based on approximate rates as of March 2026. Verify current conditions with your financial institution, transfer service provider, and qualified professionals before making any transfers. Tax implications of international transfers vary by jurisdiction — consult a qualified tax advisor regarding your specific situation.