Paying for a House in Japan From Abroad: Banks, Wiring & FEFTA

You've found the akiya. You're ready to buy. Then comes the question almost no listing prepares you for: how do you actually get the money there? Paying for a house in Japan from abroad means moving a large sum in yen while overseas — and opening a Japanese bank account as a non-resident is hard. Here's how the money really moves, and the two compliance steps that catch people out.

Paying for a house in Japan from abroad usually means cash

Japanese banks rarely lend to non-residents, so the majority of overseas akiya purchases are cash. That means you need to deliver a large sum, in yen, at closing. The mechanics matter.

The bank account hurdle

As a non-resident, you generally can't easily open a Japanese bank account — most banks want residency and a local address. So the funds usually flow one of these ways:

• International wire transfer to the account coordinating the closing (often the judicial scrivener or the agent's client account), timed to settlement.

• A local account, if you do have residency or a status that lets you open one.

Your agent and scrivener will tell you exactly where funds need to land and when. Confirm this early — international transfers take time and can hit intermediary-bank delays.

Exchange rate and timing risk

The purchase price is fixed in yen, but your money is probably in another currency. Between agreeing the price and settling, the exchange rate moves — that can help or hurt you. Two practical notes:

• Compare your bank's wire (fees plus the exchange-rate spread) against a dedicated FX/transfer service; the spread is often where the real cost hides.

• Don't leave the conversion to the last minute if a large swing would break your budget.

Two compliance steps people miss

1. FEFTA reporting (since April 2026). Non-resident buyers must file a report with the Bank of Japan under the Foreign Exchange and Foreign Trade Act — typically within 20 days of acquisition. It's a statistics/compliance filing, and your agent or scrivener can usually submit it for you. Separately, all buyers (Japanese and foreign) now disclose nationality at registration. Neither rule blocks your purchase — they're paperwork, not barriers.

2. A tax representative (nōzei kanrinin, 納税管理人). If you'll own the property while living overseas, you're generally required to appoint a tax representative in Japan to handle your ongoing property-tax payments. Sort this out around the purchase, not after the first tax bill arrives confused.

Who actually handles the money

At closing, the judicial scrivener (shihō-shoshi, 司法書士) typically coordinates the flow of funds and registers the title transfer simultaneously — money and ownership change hands together. This is exactly why a reputable, communicative agent and scrivener matter so much when you're not in the room: you're trusting them to orchestrate a large cross-border transaction on your behalf.

What to fund at closing

Budget to send the purchase price plus roughly 6–8% in closing costs (agent commission, registration and acquisition taxes, scrivener fees). Don't wire only the sticker price and get caught short.

The practical sequence

1. Confirm with your agent/scrivener where and when funds must arrive.

2. Line up your transfer method and compare FX costs.

3. Send purchase price + 6–8% closing costs, timed to settlement.

4. Have the scrivener file the FEFTA report and complete registration.

5. Appoint your tax representative for ongoing taxes.

Moving money across borders for a property you may have never set foot in feels daunting. It's routine — but only when you've lined up the people and the paperwork in advance.

FAQ

Do I need a Japanese bank account to buy property in Japan? Not necessarily. Many non-residents pay by international wire to the scrivener or agent coordinating the closing. Opening a Japanese account is difficult without residency, so cash purchases via wire are common.

How do I send money to Japan to buy a house? Usually by international wire transfer timed to settlement, to the account your agent or scrivener designates. Compare your bank's fees and exchange-rate spread against a dedicated FX service.

What is FEFTA reporting? Since April 2026, non-resident buyers must file a report with the Bank of Japan within about 20 days of acquiring property. It's for government statistics and doesn't restrict your purchase; your agent or scrivener can file it.

What is a tax representative in Japan? A nōzei kanrinin is someone you appoint to handle your Japanese property-tax payments if you live overseas. It's generally required for non-resident owners and should be arranged around the time of purchase.

The money mechanics are where remote buyers feel most exposed. My Akiya & Airbnb in Japan: The Reality Guide lays out the full purchase sequence so nothing blindsides you at closing. Get the guide →