Remote Banking in Japan

Comprehensive Banking Guide for Expats in Japan

Banking in Japan can seem daunting for expats due to the language barrier and unfamiliar procedures. However, understanding the banking system and requirements will ease your financial transactions and daily banking needs. This guide provides essential information on banking in Japan, including banks accepting foreigners, KYC requirements, Wise/Revolut availability, ATM fees, multi-currency options, opening processes, currency exchange tips, and tax residency clarification.

Banks Accepting Foreigners in Japan In Japan, not all banks cater to foreigners, and some banks have stringent requirements for opening accounts. However, there are several major banks that are foreigner-friendly, such as:

1. Mizuho Bank: Mizuho Bank is one of the largest banks in Japan and is known for its foreigner-friendly services. They offer support in English and have branches in major cities.

2. Shinsei Bank: Shinsei Bank is popular among expats for its English services and user-friendly online banking platform.

3. Japan Post Bank: Japan Post Bank is a reliable option for expats, with branches across the country and English-speaking staff.

KYC Requirements Know Your Customer (KYC) requirements in Japan are strict. To open a bank account, you will typically need the following documents:

- Passport - Residence card (Zairyu card) - Proof of address (utility bill or rental agreement) - In some cases, a hanko (personal seal)

Make sure to have these documents ready to expedite the account opening process.

Wise/Revolut Availability Wise (formerly TransferWise) and Revolut are popular digital banking options for expats. While Wise has a presence in Japan and allows you to send and receive money internationally at low fees, Revolut is not officially available in Japan yet. However, you can still use Revolut cards for spending in Japan.

ATM Fees ATM fees can vary depending on the bank and the type of account you hold. Some banks, like Japan Post Bank and Seven Bank, offer fee-free withdrawals for certain accounts. Make sure to check with your bank regarding ATM fees to avoid unexpected charges.

Multi-Currency Options If you frequently deal with multiple currencies, consider opening a multi-currency account. Some banks in Japan offer multi-currency accounts that allow you to hold and transfer funds in different currencies, making international transactions more convenient.

Opening Process The account opening process in Japan usually involves visiting a bank branch in person. English services are available in major cities, but it is advisable to have a Japanese-speaking friend or translator with you for smoother communication. Once you provide the necessary documents and complete the application form, your account will be activated within a few days.

Currency Exchange Tips When exchanging currency in Japan, it's essential to compare rates offered by banks and exchange bureaus. Banks usually offer competitive rates for major currencies, but it's wise to avoid exchanging money at airports or hotels, as they often have higher fees and less favourable rates.

Tax Residency Clarification Understanding your tax residency status in Japan is crucial for managing your finances. If you reside in Japan for 183 days or more in a calendar year, you are considered a resident for tax purposes. As a tax resident, you are subject to Japanese income tax on your global income. It's advisable to consult a tax advisor to ensure compliance with Japanese tax laws.

In conclusion, navigating the banking system in Japan as an expat may seem complex at first, but with the right information and preparation, you can manage your finances effectively. Choose a foreigner-friendly bank, fulfil KYC requirements, explore digital banking options like Wise, be aware of ATM fees, consider multi-currency accounts, follow the account opening process diligently, exchange currency wisely, and clarify your tax residency status for a seamless banking experience in Japan.