Remittance & FX for Japanese Property Investors

1. Bank vs FX broker spread

Mid-market USD/JPY:        152.00
Retail bank (SMBC/MUFG):   153.80  ← 1.18% away
HSBC Premier:              152.90  ← 0.59%
Wise:                      152.15  ← 0.10%
OFX / Convera:             152.10  ← 0.07%

On US$200,000:  bank = ¥360,000 spread. Wise = ¥30,000 spread.

2. Getting yen into Japan for closing

1. Open a Japanese yen account first. SMBC Trust Prestia, Shinsei, Sony Bank accept non-residents (in-person visit often required).
2. Wire from an FX broker. Wise, OFX, Convera, Corpay convert at near-mid, deliver in 1–2 business days.
3. Instruct in yen, not USD. Sending USD to your yen account triggers a bank-side FX at their spread — undoing the broker savings.

3. Reporting thresholds

• ¥30M+ single transfer: your bank files a report to MOF under the Foreign Exchange & Trade Act. Automatic, no action needed from you.
• ¥100M+ property purchase: post-transaction filing required. Judicial scrivener usually handles.
• Home country: FBAR (US), CRS reporting (SG/HK/UK/AU) apply to your Japanese bank account balance.

4. Receiving rent overseas

Two options:

• Accumulate in Japan: rent lands in Japan account, PM handles bills, you sweep quarterly or annually via broker at a good rate. Optimal for most.
• Monthly remittance: PM converts and wires each month. Simple but expensive if PM uses their bank rate.

5. Hedging

A 10% JPY move against your home currency shifts a ¥30M asset by ¥3M in home terms. Two real-world hedges:

• Yen mortgage: natural hedge — asset and liability both in yen. This is the biggest single argument for financing rather than paying cash.
• FX forward: only makes sense for large expected outflows (a planned sale in 12 months). Retail spreads make short-term hedging uneconomic.