This article is part of Zagdim’s wiki series on buying and selling property in Japan. It sets out the foreign-exchange rules and bank procedures that apply when proceeds from selling a Japanese property are remitted abroad, written for readers living overseas who are preparing to sell, or have just sold, property in Japan. For the full sale process, see the main guide, Selling Property in Japan as a Foreigner: Buyer, Taxes, Signing Abroad, and Remitting Funds.
Why Readers Worry About Getting Sale Proceeds Out
Sale proceeds are a large sum, and remitting them out of Japan runs into terms like “foreign exchange reporting” and “the bank reports to the tax office.” The confusion is usually about which obligations belong to the seller, which belong to the buyer or the bank, and whether the money can actually be remitted without a hitch.
The Short Answer
Proceeds from selling property in Japan can be remitted abroad without a permit. Under the Foreign Exchange and Foreign Trade Act, outbound remittances and currency conversion are free except for specific payments subject to a permit requirement, and this sale does not fall into that category. The Act’s payment reporting requirement does not apply to the non-resident seller; if the buyer is a Japan resident and pays the seller more than JPY 30 million, the reporting obligation falls on the buyer. Separately, the bank is required to file a report with the tax office for every outbound remittance over JPY 1 million, and will also confirm the seller’s identity and the purpose of the transaction. What a seller needs to arrange in advance is an account that can receive the funds in Japan and remit them onward.
Who Has to File the Foreign Exchange Act Payment Report?
Article 55 of the Foreign Exchange and Foreign Trade Act requires that payments or receipts between a resident and a non-resident, and remittances between Japan and abroad, be reported to the relevant authority. Two exemptions apply:
- Payments of JPY 30 million or less per transaction are exempt from reporting.
- Non-residents themselves are exempt from the reporting obligation, even when the payment or receipt goes through a bank in Japan.
So for a seller living abroad, this reporting requirement is not the seller’s obligation. On the other side, a payment between a resident and a non-resident is reportable even when it takes place within Japan, so if the buyer is a Japan resident paying a non-resident seller more than JPY 30 million, the reporting obligation belongs to the buyer.
The Foreign Exchange Act also has a separate “report on a non-resident’s acquisition of Japanese real estate,” which is the buyer’s obligation when acquiring the property. The Ministry of Finance guidance reviewed for this article covers only that acquisition-side report; there is no corresponding reporting requirement on the sale side.
Does the Bank Report the Remittance to the Tax Office?
Yes. Financial institutions must file a “report on overseas remittances” with the tax office for every outbound remittance over JPY 1 million, by the end of the month following the remittance. This is the bank’s obligation, not something the seller needs to file; the report records information such as the remitter and the amount.
When arranging an outbound remittance, the sender is generally required to submit a notification form to the bank stating their name, address, individual number (if applicable) and the reason for the remittance, and to present identification documents. This requirement does not apply when transferring from the sender’s own identity-verified account.
In addition, banks confirm a customer’s name, address, date of birth, occupation and the purpose of the transaction as part of anti-money-laundering checks. When remitting sale proceeds, the bank may ask for an explanation of the source of funds, so it is worth keeping the sale contract, the settlement statement from closing, and the completed registration documents on hand.
How Should You Prepare Your Account?
This is the step to confirm earliest. Some Japanese banks restrict account usage for people who have left Japan. Whether the buyer’s bank can remit the final payment directly to the seller’s account abroad, and what documents each bank requires to remit sale proceeds out of the country, were not verified in this round of research and remain to be confirmed; sellers should follow the specific written requirements of the bank handling the transaction.
Before selling, there are three things a seller can do in advance:
- Confirm with the agent how the buyer plans to pay the final balance and which account it will go to.
- Ask the receiving bank for its list of required documents for an outbound remittance.
- Arrange an account to receive the funds, ideally held in the seller’s own name.
Which of these applies depends on whether the seller still has a usable personal account in Japan, and on the buyer’s bank’s own practices.
Should Taxes Be Settled Before Remitting?
The remittance itself does not check whether taxes have been paid, but the tax obligation does not disappear once the funds are remitted. If the buyer withheld 10.21% at the time of sale, that amount is held by the tax office and is only settled after the seller files a final tax return by March 15 of the following year; if the buyer did not withhold tax, the seller must pay the tax independently by the same deadline. Whether a tax refund can be paid directly into an overseas account was not verified in this round of research and remains to be confirmed, pending guidance from the tax office and a licensed tax accountant (zeirishi). For how the tax amount and filing are calculated, see Japan Property Sale Tax for Non-Residents: How the 10.21% Withholding, 30.63% Short-Term and 15.315% Long-Term Rates Are Calculated.
What’s the Next Step?
If the seller is not physically in Japan, the account arrangements and signing process need to be planned together: who collects the final payment, and who serves as the tax administrator, are covered in Selling Japanese Property From Abroad: Notarized Affidavits, Tax Administrators, and Domestic Contacts. For the overall sale process, see the main guide, Selling Property in Japan as a Foreigner: Buyer, Taxes, Signing Abroad, and Remitting Funds.
FAQ: Remitting Japan Property Sale Proceeds
Do I need to apply to the Japanese government to remit my Japan sale proceeds abroad?
No permit application is required. Non-residents are also exempt from the Foreign Exchange Act’s payment reporting requirement; the bank will report any outbound remittance over JPY 1 million to the tax office under its own separate obligation.
The Japanese buyer paid me more than JPY 30 million. Do I need to report it?
The Foreign Exchange Act’s payment reporting obligation falls on the resident party; non-residents are exempt. When a resident buyer pays a non-resident seller more than JPY 30 million, the buyer is the one who must file the report.
What will the bank ask when I remit Japan sale proceeds?
The bank will confirm your name, address, occupation and the purpose of the transaction, and may ask you to explain the source of funds. Required documents vary by bank, so follow the specific written requirements of the bank handling your transaction.
Glossary
- Foreign Exchange and Foreign Trade Act (外国為替及び外国貿易法): Japan’s law governing international payments and capital transactions.
- Payment Report (支払又は支払の受領に関する報告書): The report the Foreign Exchange Act requires a resident to file for each international payment exceeding JPY 30 million.
- Report on Overseas Remittances (国外送金等調書): The record a bank files with the tax office for outbound remittances exceeding JPY 1 million.
- Notification Form (告知書): The personal information and stated reason for remittance submitted to the bank when arranging an outbound transfer.
- Non-Resident (非居住者): An individual who has no residence in Japan and has not had a continuous place of abode there for one year or more.
About This Research
This article was compiled by Zagdim research. The statutory provisions have been checked against the original text by Zagdim (Verified by Zagdim); market practices are labeled separately where they appear. Information was checked as of October 9, 2026. The foreign-exchange rules are based on the original text of Article 55 of the Foreign Exchange and Foreign Trade Act and guidance from the Ministry of Finance and the Bank of Japan; the bank reporting rules are based on the original text of the Act on Reporting of Overseas Remittances and its enforcement order, plus guidance from the National Tax Agency; the bank verification requirements are based on guidance from the Financial Services Agency. The statements that “remitting sale proceeds does not require a permit” and “there is no corresponding report on the sale side” are drawn from the scope of the permit system and Ministry of Finance guidance. Restrictions on non-resident accounts, whether the final payment can be remitted directly overseas, each bank’s required documents for outbound remittance, and how tax refunds are paid out were not verified in this round of research and are listed as pending confirmation. This article does not cover how the seller’s home country may tax this income.
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Sources
- Ministry of Finance – Procedures Required When Remitting Funds Between Japan and Overseas
- e-Gov – Foreign Exchange and Foreign Trade Act, Article 55
- Bank of Japan – FAQ on the Report on Payments or Receipt of Payments
- Ministry of Finance – FAQ on Reports Concerning Acquisition of Real Estate in Japan
- e-Gov – Act on Reporting of Overseas Remittances
- e-Gov – Enforcement Order of the Act on Reporting of Overseas Remittances
- National Tax Agency – Submission of the Report on Overseas Remittances
- Financial Services Agency – Cooperation Requested for Verification Procedures via Bank Counters and Mailed Documents
Important Disclaimer
This article is general information and does not constitute individual legal, tax, or financial advice. Information was checked as of October 9, 2026. Foreign exchange and banking rules may be updated; follow the current requirements of Japan’s relevant authorities and the bank handling the transaction.
