Japan Money Transfer Guide
UK to Japan Guide
Contents
Summary
There are no limits on the amount of foreign currency that can be transferred to Japan or the amount of money that can be transferred out of Japan, but the physical transport of any currency over ¥1m must be declared to national customs authorities.
Top 8 Money Transfer Providers
Latest prices for transferring money from UK to Japan
Japan’s money transfer regulations
The government has largely deregulated all money transfers to and from Japan, including the transfer of interest, royalties, corporate profits and dividends, and capital repatriation. A limited number of restrictions remain, however – for example, the Foreign Exchange and Foreign Trade Act requires that foreign investment in sectors that are considered to have “national sovereignty or national security implications” must obtain prior approval from the Ministry of Finance if the sale includes over a 10% share of the Japanese entity. High-priority sectors include agriculture, petroleum, utilities, and telecommunications.
The Japanese yen (JPY) was the third-most traded currency in the world in 2018, after the US dollar (USD) and the euro (EUR), but ahead of the British pound (GBP). It is also the third-biggest reserve currency in the world, with 4.9% of the world’s reserves made up with yen in 2018.
Japan’s regulatory authority
Monetary policy is conducted by the central bank, the Bank of Japan, which is responsible for overseeing the financial system and ensuring price stability. The Bank of Japan’s oversight extends to financial service institutions that settle foreign currency transactions, including payment systems, securities settlement systems and “trade repositories”, under its goal of ensuring monetary stability. In addition, the Financial Services Agency (FSA) ensures that banks, insurance companies and other financial service providers comply with national regulation.
Japan was a participant in commitments by the G7 and G20 in February 2013 to refrain from manipulating exchange rates in order to serve domestic policy or competitive objectives. The US stated that it intends to include a currency manipulation clause in its trade deal with Japan, when talks were announced in 2019.
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Taxation and property
Japan’s tax rates are relatively high, including a 25.5% rate each for corporate income, capital gains and branch taxes. Withholding taxes average around 20% for dividends and royalties, and between 15% and 20% for interest. However, the government has reduced the tax rates applied to registration, licensing and capital gains on real estate in recent years, in order to encourage higher turnover in the property market. Non-residents are required to pay taxes only on income earned in Japan, and the country has signed 50 double taxation agreements.
Japan’s economic background
Japan is the world’s third-largest economy and a major trade power. However, foreign direct investment (FDI) in Japan as a proportion of GDP is the lowest among all member states of the Organisation for Economic Co-operation and Development (OECD). Under the government’s new Growth Strategy, Prime Minister Shinzō Abe announced in mid-2013 that Japan aims to double FDI flows into Japan to JPY35tn by 2020. This target was reconfirmed in 2016, and as of March 2019 is still the aim for the Japanese government. The country has few foreign exchange controls today, and the government aims to further open up to foreign capital by easing monetary policy and introducing fiscal incentives.
Currency
The Bank of Japan is responsible for issuing and distributing the national currency, the yen (symbol ¥). Coins are available in denominations of ¥1, ¥5, ¥10, ¥50, ¥100 and ¥500. Banknotes are printed in denominations of ¥1,000, ¥2,000, ¥5,000 and ¥10,000.
Frequently Asked Questions
Are the money transfer companies shown above safe to use?
All of the money transfer companies and services listed above are fully safe to use. Each of the above are authorised and regulated by the relevant financial authorities in each jurisdiction and are licensed to provide transfer services.
How long does an international money transfer take?
The length of time it takes to fully complete a money transfer will depend entirely on the service used and what currency you want to transfer. Transfers sent using banks — such as bank to bank transfers — will typically be quite quick, often taking between 1–2 working days. For more precise estimates, you should always check the estimated time with the relevant provider. Debit card and credit card payments might also take less time.
How do I use FXcompared?
To use FXCompared to make a money transfer from UK to USA, the first step is to use the above table to compare the rates from the various providers. To find the best provider to transfer GBP to USD, consider factors including price, speed and its overall rating. Once you have made a decision, simply click the green button to get taken through to the provider’s website. From there, you will be able to sign-up and register for an account. Once the verification process is complete, you can initiate the transfer.
What payments methods can I use to send money overseas?
The majority of transfers overseas will be made using a bank to bank transfer, although there are a number of other methods available. This includes cash, debit and credit card, as well as digital wallets. The methods available to you will depend on what provider you chose to make the transfer with.
What if the price shown above isn’t exactly what I am offered when I try to transfer money?
Although the prices shown above are generally accurate with market rates in real time, there may be some slight differences when you finalise your order. Exchange rates will fluctuate over the course of the trading day based on real-time market data. As such, when you are looking to transfer money to UK from US, for example, there may sometimes be a delay in how they are reported. Price fluctuations may also be caused by the individual site in question, depending on what services they have available.
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