Hello.
I am soon moving to Japan for a longer period and I want to transfer my savings from a bank in Sweden to my future bank account in Japan. I wonder if this money will be subject to taxation. Naturally, it has already been taxed in my country. Is it possible to avoid taxation in Japan having proven the money is in fact mine and taxed? Thank you in advance.
Hi there,
There’s no tax issue here. You’re just transferring your own money. The only issue you’ll have is explaining to your Japanese bank that you’re not laundering money. However, since both accounts should have the same name, you should be fine.
Additionally, you won’t be a tax resident of Japan until the year after your arrival. This often catches people out because you don’t get any city taxes in your first year, and you may be charged city taxes after you leave.
Anyway, nothing to worry about!
Note: Not a tax expert but have lived here for 21 years
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Thanks so much. I already took care to have proof that it is my account.
No problem. Usually, the larger the amount, the more scrutiny it receives. For amounts under 1 million yen, I’ve just had calls from the bank asking why I am receiving the money before they release it. For larger amounts, I’ve had to send documentation. It’s a really annoying system actually. Inconvenience for everyone, and probably easily avoided by real crims.
It seems a hassle. I would like to transfer more than 1 million. Do you perhaps remember what documentation you were asked to submit? Thank you for your help.
You’re probably still fine for an amount over 1 million yen since you’re transfering it to yourself. I was receiving the amount from a company, so I had to provide an employment contract.
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Hello CheapoGreg,
Great response.
Just a small note about the residence Tax. You will be taxed if you are a resident on January 1, of that year, i.e. considered a resident. Thus, I recommend to everyone coming to Japan to arrive on January 2nd or later.
I was lucky that I happened to arrive on January 2nd when my official residence began.
Lastly, when leaving Japan, appoint a person to be your proxy for filing taxes, as they will not be calculated until the following year, between mid February and mid March. If you do not “owe any taxes” then it is okay to file late. Even though you can still file taxes on your own with E-tax, it is not legal as you gave up your residency when you left.
Hope this helps.