How do you move large funds into Japan? Land and construction costs usually come in by SWIFT into a JPY account. Any single international transfer over the equivalent of ¥1 million is reported by the bank to the National Tax Agency (国外送金等調書), and the bank also checks your source of funds. The trick is to plan remittances around the payment schedule.
1. The remittance picture
The basic flow is a SWIFT transfer from your overseas bank into a Japanese bank account (in yen). It takes roughly a few business days, with correspondent-bank fees and FX. Opening a Japanese account as a non-resident is a hurdle, so a company account or a trusted setup is the realistic route.
2. Over ¥1M is reported to the tax office — the 国外送金等調書
For any single international transfer (in or out) over the equivalent of ¥1 million, the handling institution files an "overseas-remittance statement" with the National Tax Agency. This is not a tax on the transfer — it is a reporting system to track money flows. With legitimate funds there is no problem, but be ready to explain the source (sale proceeds, savings, a gift, etc.).
3. Bank AML and proof of source of funds
Under the anti-money-laundering law, banks verify identity and the source of funds. For large or first-time transfers they may ask for extra documents. Having these ready keeps things smooth:
- The real-estate purchase contract / construction contract (showing the purpose of the transfer).
- Evidence of where the money came from (records of a sale, salary, savings, a gift, etc.).
- ID; and, if sending via a company, its registration certificate.
4. Construction payments and remittance timing
A custom home is paid in stages, not in one lump. Plan each remittance to its payment date, allowing for FX and arrival time (the table is a general guide; contracts vary).
| Payment stage (guide) | Timing | What to watch when remitting |
|---|---|---|
| Contract (deposit) | At the construction contract | First transfer often needs source checks — prepare early |
| Start / framing (interim) | Around start to framing | Mind the gap between arrival date and due date |
| Completion / handover (final) | At completion / handover | Budget the needed amount + a buffer for FX swings |
Run payment terms and progress checks alongside progress reporting for overseas owners and remote construction management.
5. What overseas owners should arrange
- Secure an account — set up a JPY receiver (e.g. a company account) early.
- Check home-country rules — some countries cap or formalise individual outbound transfers. Always check the sending country's rules too.
- FX & fees — budget correspondent-bank fees, FX spread and lead time.
- Specialists — confirm the steps with a tax accountant (tax & exit) and your bank before transferring.
Towa's role, and common myths
The transfer is the bank's domain and tax the accountant's. As a builder, we make the contract, invoices and payment schedule that evidence the transfer's purpose clear, so payments from abroad don't stall.
| Common myth | The correct view / fix |
|---|---|
| “Remitting triggers tax” | Transfer ≠ tax. Over ¥1M is merely reported via the statement |
| “No need to explain the source” | Banks check source of funds — keep contract & proof ready |
| “Just send the whole amount at once” | Pay by stage; plan in tranches for FX and arrival time |
| “A non-resident can open an account easily” | It's a hurdle — set up a company account early |
| “Home-country rules don't matter” | Check the sending country's caps and procedures too |
Remittance is a "smooth if you prepare" exercise. The keys are being able to explain the purpose (contract) and the source of funds, and planning around payment dates. This is not tax or legal advice — confirm the specifics with your bank and a tax accountant. The build schedule, including the payment timeline, is free to discuss.
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