China's capital controls (the USD 50,000 annual quota) — how do you settle a Japanese real estate purchase?

In short: The foreign currency a mainland Chinese individual can send abroad fits inside a narrow facilitation quota (USD 50,000 equivalent per person per year for both conversions), and purchases within that quota cannot be used for the capital-account item of "buying property overseas." So settling a Japanese real estate deal begins with confirming, before you sign, when and from what lawful source the deposit and balance can be remitted. We do not handle whether currency can be bought or how to remit it, nor tax planning; Japan-side reporting under the Foreign Exchange Act goes to an administrative scrivener, tax on overseas remittances to a tax accountant, and disputes over the lawfulness of funds to a lawyer.

This is written for the local real estate and wealth-management professionals in mainland China who support buyers of Japanese property, and for those buyers. We organize "will the settlement funds actually reach Japan on time?" from both the mainland capital-control side and the Japan-side settlement schedule. We handle only the Japan-side brokerage and information; we do not decide whether currency may be purchased, design remittance schemes, or make tax judgments. Each of those areas is referred separately, under its own contract.

What limits exist on how much a mainland individual can send abroad?

There is an annual aggregate ceiling called the facilitation quota — USD 50,000 equivalent per person per year — and purchases within it cannot be used for the capital-account purpose of buying property overseas.

For a mainland individual to convert RMB into foreign currency (purchase) or foreign currency into RMB (sale), the State Administration of Foreign Exchange (SAFE) applies an "annual aggregate" ceiling under the Detailed Rules for the Implementation of the Measures for the Administration of Individual Foreign Exchange (Huifa [2007] No. 1). The annual aggregate is USD 50,000 equivalent per person per year for both sales and purchases, and within it the procedure can be completed at a bank counter with identification (the facilitation quota).

The point that matters most for settlement is that purchases within the facilitation quota may be used only for current-account items. SAFE limits individual purchases within the quota to current-account purposes such as travel, study abroad, overseas medical care, visiting relatives, and official or business travel, and states they cannot be used for overseas property purchases, securities investment, or other not-yet-opened capital-account items. A large currency purchase and remittance to buy Japanese property falls outside what this individual quota contemplates.

Item	Content
Basis	Detailed Rules (Huifa [2007] No. 1)
Annual aggregate (facilitation quota)	USD 50,000 equivalent per person per year, each of sale and purchase
Usable purposes within the quota	Travel, study, overseas medical, visiting relatives, official/business — current account
Not usable within the quota	Overseas property purchase, securities investment and other capital-account items
If exceeded	Submit documents proving the genuineness of the transaction; the bank handles it after review

So "buy it after stacking USD 50,000 for a few years" does not work in a simple way, because capital-account purchases are in principle not permitted even beyond the facilitation quota. Exactly which source or channel allows a lawful remittance is a matter for foreign-exchange and remittance specialists; we do not judge it. A specialist review is required before any settlement plan.

In what order are the deposit and balance remitted when buying in Japan?

In Japan the deposit is paid at contract and the balance at settlement and handover. Because the remittance comes in two stages, confirm the source and timing of each before contracting.

A Japanese real estate sale typically has two stages: the buyer pays a deposit when the contract is signed, then pays the balance on the settlement date to take transfer of ownership and delivery. For a buyer from mainland China, both remittances are affected by the mainland's rules, review, and time lag to arrival.

Stage	When	What happens in Japan	Where remittance stalls
Deposit	At contract	Deposit exchanged, contract formed	Even a small cross-border remittance takes days for review and arrival
Balance	At settlement/handover	Balance settled, ownership-transfer registration filed, delivery	Largest exposure to capital-account rules and review, being a large sum

Japan's deposit is in principle a "cancellation deposit": under Article 557(1) of the Civil Code (Act No. 89 of 1896), until the counterparty begins performance, the buyer may forfeit the deposit and the seller may cancel by actually tendering double the amount. This differs in nature from China's "dingjin," as set out in Clauses Chinese-speaking buyers tend to misread in Japanese sale contracts. If the balance does not arrive by the settlement date, it can lead to forfeiture of the deposit or cancellation as the buyer's default, so the key practice is to work backward from the settlement date and build the schedule around the remittance lead time.

What happens to the contract if the remittance is blocked by the quota or review?

If the balance does not arrive by the settlement date, it becomes the buyer's default, with the risk of losing the deposit or having the contract cancelled. To avoid this, reflect the prospect of securing and remitting funds in the contract terms.

Japanese sale contracts include a "loan financing special clause" that returns the contract to a blank slate without condition if the buyer's financing is not approved. But this assumes domestic Japanese loans and is not a clause that automatically rescues a case where an overseas remittance is blocked by regulation or review. A non-resident buyer paying cash often does not include a loan clause at all.

What to check	Point to watch
Lead time to the settlement date	Build in the mainland's review and arrival lag; set a settlement date with margin
Source and channel of funds	From which lawful source/channel can a large sum exceeding the facilitation quota be prepared (specialist check)
Fallback if remittance is late	Can the settlement date be extended, or a clause conditioned on securing funds be inserted (a matter to negotiate with the seller)
Nature of the deposit	Is it a cancellation deposit — handling of cancellation changes before/after performance begins

The risk that a remittance stalls is something to assess as a funding plan before the contract. After the settlement date passes, it comes back as forfeiture of the deposit or default. Judgments on the lawfulness of funds, whether a remittance is possible, and dispute handling are for foreign-exchange/remittance specialists and lawyers; we do not do them.

Who handles the Foreign Exchange Act reporting to confirm on the Japan side?

When a non-resident acquires real estate in Japan, a report under the Foreign Exchange Act is required within 20 days of acquisition. An administrative scrivener prepares the report under a separate contract.

The Foreign Exchange and Foreign Trade Act (Act No. 228 of 1949) requires that a non-resident's acquisition of real estate in Japan, or rights to it, be reported within 20 days of acquisition to the Minister of Finance via the Bank of Japan (Form 22), under Article 55-3(1) (the acquisition being a capital transaction under Article 20(x)) and the related ministerial ordinance. It applies regardless of amount or area, and for acquisitions on or after 1 April 2026 the scope widened to report regardless of purpose. Failure to report, or a false report, is punishable by imprisonment of up to six months or a fine of up to JPY 500,000 (Article 71(iii)).

Topic	What is done	Who
Foreign Exchange Act acquisition report	File Form 22 via the Bank of Japan to the Minister of Finance within 20 days	The person, or a resident agent; the document is prepared by an administrative scrivener (separate contract)
Ownership-transfer registration	Name change, attached documents such as a signature certificate	Judicial scrivener
Tax on acquisition/holding/transfer	Tax, filing of a tax agent	Tax accountant
Tax on overseas remittance	Filings relating to remittance/fund movement	Tax accountant

This Japan-side Foreign Exchange Act report is a separate system from the mainland's capital controls. The details are in When a non-resident buys Japanese real estate, a Foreign Exchange Act report within 20 days. We handle the Japan-side property investigation, important-matters explanation, brokerage and contract; where a document for a public office must be prepared, our affiliated Yotsuba Administrative Scrivener Office undertakes it under a separate contract.

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How does remittance practice differ between Greater China (Taiwan/Hong Kong) buyers and mainland China?

Hong Kong has no foreign-exchange control and funds move freely, and Taiwan's annual aggregate remittance quota for individuals is far larger than the mainland's — so settlements stall less. That is the biggest difference from the mainland.

Even within Greater China, the rules for moving funds abroad differ greatly by jurisdiction.

Jurisdiction	Framework for individual outbound remittance	Effect on settlement
Mainland China	Facilitation quota USD 50,000 equivalent/year. Cannot be used for capital-account overseas property	Large purchases/remittances are structurally difficult
Taiwan	CBC Regulations Governing the Declaration of Foreign Exchange Receipts and Disbursements or Transactions. Individual annual aggregate settlement quota USD 5,000,000 equivalent (companies USD 50,000,000). Transactions of NT$500,000 or more must be declared	Quota is large; easy to remit on a declaration basis
Hong Kong	No foreign-exchange control; funds move freely in principle	Small risk of a settlement stalling due to remittance rules

Taiwan and Hong Kong buyers are not bound by the mainland's narrow currency-purchase quota, so the settlement schedule is built differently. How cross-border Taiwan cases proceed is touched on in Registration and title-deed differences that puzzle Taiwanese professionals in Japanese transactions. Working with local professionals is set out in Handling Japanese real estate together with local professionals. Quotas and declaration thresholds are amended, so confirm the latest guidance from the local financial institution or central bank before remitting.

We handle the Japan-side property investigation, important-matters explanation, price and terms, brokerage and sale contract. The local (mainland/Taiwan/Hong Kong) foreign-exchange and remittance specialists and the various professionals, and our company, are each independent business entities. Where roles overlap, we clarify before the contract who handles what, and you contract with each separately. Whether currency may be purchased and remittance-scheme design go to the foreign-exchange/remittance specialists, tax on overseas remittances to a tax accountant, disputes over the lawfulness of funds to a lawyer, and the Japan-side Foreign Exchange Act report to an administrative scrivener — each engaged directly. We neither receive nor pay any referral fee or introduction commission. Consultations are free.

FAQ

Q. Can I buy Japanese property by stacking the USD 50,000 quota for a few years?
A. Not in a simple way. Purchases within the facilitation quota (USD 50,000 equivalent/year) are limited to current-account items such as travel, study, and medical care, and SAFE states they cannot be used for capital-account items such as overseas property purchases. Purchases beyond the quota go through a review of the transaction's genuineness, but capital-account overseas property purchases are in principle not permitted whether inside or outside the quota. Ask a foreign-exchange/remittance specialist which source and channel allow a lawful remittance.

Q. What happens if the balance remittance is not in time by the settlement date?
A. If the balance does not arrive on the settlement date, it is the buyer's default, with the risk of losing the deposit or having the contract cancelled. Japan's loan financing special clause assumes a domestic loan and does not automatically rescue a blocked overseas remittance. Work backward from the settlement date for the remittance lead time, and before contracting, arrange with the seller whether the date can be extended or a clause conditioned on securing funds can be added.

Q. Is there a filing that must always be made in Japan after buying?
A. When a non-resident acquires Japanese real estate, a report (Form 22) is filed within 20 days of acquisition to the Minister of Finance via the Bank of Japan (Article 55-3(1) and Article 20(x), and the related ordinance). It applies regardless of amount, and acquisitions from 1 April 2026 are reportable regardless of purpose. An administrative scrivener prepares it under a separate contract; registration goes to a judicial scrivener and tax to a tax accountant, each engaged directly.

Q. Do Taiwan and Hong Kong buyers face the same remittance constraints as the mainland?
A. No. Hong Kong has no foreign-exchange control and funds move freely in principle. In Taiwan, under the central bank's declaration regulations, the individual annual aggregate settlement quota is USD 5,000,000 equivalent (companies USD 50,000,000), very different in size from the mainland's annual USD 50,000 facilitation quota. Quotas and thresholds are amended, so confirm the latest local guidance before remitting.

Sources (primary information)

• SAFE, Detailed Rules for the Implementation of the Measures for the Administration of Individual Foreign Exchange (Huifa [2007] No. 1) (individual annual aggregate = USD 50,000 equivalent per person per year for both sale and purchase; purchases within the facilitation quota limited to current-account items. Accessed 2 Oct 2026)
• SAFE explanation of individual currency-purchase policy (purchases within the facilitation quota cannot be used for capital-account items such as overseas property or securities) (reprint of SAFE's official position. Accessed 2 Oct 2026)
• e-Gov Law Search "Civil Code" (Act No. 89 of 1896; Article 557(1) = deposit (until performance begins, buyer forfeits / seller tenders double to cancel). Accessed 2 Oct 2026)
• Ministry of Finance "Filing of the report on acquisition of real estate in Japan or rights to it under the Foreign Exchange Act" (Article 55-3(1) and Article 20(x), and related ordinance; a non-resident's acquisition reported within 20 days via the Bank of Japan to the Minister of Finance (Form 22); no amount threshold; acquisitions from 1 April 2026 covered regardless of purpose; Article 71(iii) = penalties. Accessed 2 Oct 2026)
• Central Bank of the Republic of China (Taiwan), Regulations Governing the Declaration of Foreign Exchange Receipts and Disbursements or Transactions (transactions of NT$500,000 or more must be declared; individual annual aggregate settlement quota USD 5,000,000 equivalent, companies USD 50,000,000 equivalent. Accessed 2 Oct 2026)

• Whether mainland currency purchase/outbound remittance is possible, and judgments on lawful sources/channels, change with the transaction's substance and the latest foreign-exchange policy. This article does not assert whether any specific remittance scheme is possible; such matters are treated as [unverified], assuming confirmation by foreign-exchange/remittance specialists.
• The need for a non-resident's Foreign Exchange Act report, registration documents, and tax varies by purpose and manner of acquisition. This article does not assert specific tax amounts/rates or applicability of reporting.
• Taiwan and Hong Kong remittance systems and quotas are amended. This article is a general summary as of the access date and does not guarantee any individual remittance.
• This article is general information, not an individual legal or tax judgment. Whether currency/remittance is possible is for specialists, tax on overseas remittance for a tax accountant, disputes over lawfulness of funds for a lawyer, and the Japan-side Foreign Exchange Act report for an administrative scrivener.
• The Japan-side property investigation, important-matters explanation, brokerage and sale contract are handled by Yotsuba Real Estate Co., Ltd. (real estate brokerage); local professionals and the various practitioners contract with you separately as independent business entities. There is no exchange of referral fees or introduction commissions. See Investment & commercial real estate.

About the author

Joji Uramatsu — Licensed Real Estate Transaction Specialist (Tokyo Governor registration No. 293544) and Administrative Scrivener (registration No. 25087022). Representative Director of Yotsuba Real Estate Co., Ltd. (real estate brokerage, Tokyo Governor (1) No. 113304) / Head of Yotsuba Administrative Scrivener Office. Kohinata, Bunkyo-ku, Tokyo, about 5 minutes' walk from Myogadani Station. Supporting documents available in Traditional and Simplified Chinese; for Chinese-speaking buyers and local professionals, remittance/settlement schedules and Japan-side procedures are confirmed side by side. See the author page for the full profile.