Managing your money in Japan.

Currency

The Japanese Yen (¥, JPY).
Coins: ¥1, ¥5, ¥10, ¥50, ¥100, ¥500. (The ¥5 and ¥50 coins have holes).
Banknotes: ¥1,000, ¥2,000 (rare), ¥5,000, ¥10,000.
Cash is King (Still): While credit/debit cards and electronic payments are becoming more widespread, especially in cities and larger establishments, many smaller shops, local restaurants, and some services (e.g., doctors' clinics for initial payment) may still prefer or only accept cash. Always carry some cash.

Banking

Opening an Account: (Covered in "Relocation & Getting Settled"). Once you have your Residence Card and a Japanese address/phone number, this is a priority.
ATMs:
- Widely available in banks, post offices, and convenience stores (7-Eleven ATMs are particularly foreigner-friendly, often with English menus and accepting international cards).
- Withdrawal limits and fees can apply, especially for international cards or using ATMs outside your bank's network.
- Operating hours vary; convenience store ATMs are usually 24/7.
Bank Transfers (Furikomi): A common way to pay bills, rent, and make other payments. Can be done at ATMs, bank counters, or online.
Credit Cards:
- Japanese-issued credit cards can be convenient for online shopping and building local credit. Applying can sometimes be challenging for new foreign residents. We will provide support if required.
- International credit cards (Visa, Mastercard, Amex) are widely accepted in department stores, hotels, and larger restaurants.
Electronic Money (IC Cards & Mobile Payments):
- Suica/Pasmo are not just for transport; they're widely used for small purchases.
- Mobile payment apps (PayPay, Line Pay, Rakuten Pay, Apple Pay, Google Pay) are increasingly popular.

Income Tax:
- Non-permanent resident taxpayers are taxed on their income other than foreign-source income that is not remitted into Japan.
- Permanent residents are taxed on worldwide income (though rules differ for non-permanent residents within the first 5 years).
- Tax rates are progressive.
- Income tax is usually deducted from your salary by your employer (gensen chōshū).
- A year-end tax adjustment (nenmatsu chōsei) is typically done by your employer to finalize your annual income tax liability.
Residence Tax (Inhabitant Tax): A local tax levied by your prefectural and municipal government. Based on your previous year's income. You'll usually start paying this in your second year in Japan, so expect a change in our take-home pay after your 12th month.
Consumption Tax (Sales Tax): Currently 10% on most goods and services (a reduced rate of 8% applies to certain items like food for takeout).
Tax Accountants: For complex situations or if you need assistance, English-speaking tax accountants are available.

Enrollment is Mandatory: For all residents aged 20-59.
Employees' Pension Insurance (Kosei Nenkin): If you're a full-time employee, you'll be enrolled in this. Premiums are shared between you and your employer, deducted from your salary.