Overseas Remittances: Sending Money to Japan to Purchase Real Estate

When you purchase property in Japan, you can remit a large amount of money to Japan from your country. This transaction may be complex because of commission fees and the maximum amount of money you can send depends on which country and bank you are sending from.

We advise you on different commission fees and what you should take into account when you choose a bank from which you plan to remit money.

There are main three types of commission fees:

①Remittance charge

②Incoming remittance charge

③Yen exchange charge

When remitting money from your country, you need to consider these three fees and choose a bank that has a low level of such fees. Note, the combination of commission fees you must pay can vary depending on by way of remittance.

【Case 1】Sending foreign currency to Japan requires:

①Remittance charge

②Incoming remittance charge

③Yen exchange charge

【Case 2】Exchange foreign currency to JPY and send it to Japan requires:

①Remittance charge

②Incoming remittance charge

【Case 3】Sending JPY to Japan requires:

①Remittance charge

②Incoming remittance charge

③Yen exchange charge

4. Lifting charge

※Lifting charge is a type of commission fee when you send JPY to Japan without exchanging.

If you send foreign currency to Japan, the exchange rate of the day is applied, but most of the banks employ a Telegraphic Transfer Selling (TTS) rate that includes a Yen exchange charge in addition to the exchange rate of the day.

Thus, because the TTS rate depends on the bank and the exchange rate status, you should refer to each bank’s TTS rate rather than commission fees when choosing a bank to remit. If you send 1,000,000 yen for example, only 1 yen change of the exchange rate gives rise a difference of 10,000 yen.

However, you should avoid bringing foreign cash to Japan even though it will not cost remittance charge and incoming remittance charge. This is because it is efficient to exchange foreign currency to JPY in your own country rather than in Japan.

Here are some examples of Japanese bank’s incoming remittance charge:

When you remit money from your own country, what you should consider the following to choose a bank carefully and avoid loss:

Ⅰ Limitation of the amount of money you can remit

Ⅱ Credit of financial institution.

Ⅲ Commission fee

Ⅳ Days to take to remit money

Ⅵ TTS rate