Ultra-modern yet undeniably ancient, exciting, and serene, life in Japan beckons to many people in Britain who are looking for a completely different way of living. Whether you’re considering moving to this Asian island country for business, studies, or retirement, you should pay careful attention to the cost of living in Japan. 

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The Currency in Japan 

The currency in Japan is the Japanese Yen (¥), and its official currency code is JPY, which is how you will find it displayed at Moneycorp. The Yen is the third most traded currency in the foreign exchange market. One Yen is subdivided into 100 Sen and into 1000 Rin. The Japanese government has maintained a currency intervention policy since 1973, which means the currency is under a “dirty float” regime. Banknotes are available in denominations of ¥1,000, ¥2,000, ¥5,000, and ¥10,000, and coins are available in denominations of ¥1, ¥5, ¥10, ¥50, ¥100, and ¥500. £1 is worth ¥162.48 at 12.01pm on 7 March 2023. 

Where to Live in Japan 

Japan is a country of huge cities, smaller towns, and quaint villages. The most popular cities for British expats who are attracted by the relatively low cost of living in Japan include Tokyo (especially the areas of Minato-ku, Shibuya-ku, Chiyoda-ku, and Meguro-ku), Kyoto, Yokohama, Osaka, and Sapporo, as well as Okinawa and Kobe.  

According to the 2022 Mercer Cost of Living Survey, Tokyo is the 9th most expensive city in the world, beating London, which is 15th on the list. Osaka is the world’s 37th most expensive city, while Yokohama and Nagoya are the 50th and 51st most expensive cities.  

How Much Does Accommodation Cost in Japan? 

While Tokyo’s spot on the Mercer survey might lead you to think that life in the Japanese capital is prohibitively expensive, the reality might surprise you. The cost of accommodation is lower than what you would pay in Central London. On average, rent prices in Japan are 33.6% lower than in the UK. The table below offers a good idea of rental and property prices in Japan.

All figures were taken from Numbeo and exchange rates were calculated at 12.01pm on 7 March 2023. 

Tokyo

Osaka

Yokohama

How Much Does Transport Cost in Japan? 

Transport is one area in which the cost of living in Japan is lower than in the UK. You will find lower prices for public transport, petrol, and private vehicles, although private taxis (cabs) tend to be more expensive. See the table below for average prices for single-journey and monthly public transport tickets, petrol, and new vehicles.  

The Cost of Living in Japan for International Students 

Excluding tuition fees, the cost of living in Japan for international students really depends on lifestyle and purchasing choices. If you live like a local while studying in Japan, you can live far more affordably than if you choose typical expat consumption. 

Tuition fees range from £5064.79 to £21618.00 per year, course dependent. For accommodation, you can pay between £74.12 and £370.59 per month for a dormitory room, depending on the city you study in. Another option is to rent an apartment by yourself or with other students. If you want to hire a full-time domestic worker, as domestic help is common in Japan, budget for approximately £610.75 per month. 

Budget approximately £185.30 per month for food, £43.24 for utilities, £30.88 for transport, £18.53 for insurance and medical, £37.06 for entertainment, £37.06 for a mobile phone package, and £30.88 for miscellaneous expenses.  

What is the Cost of Living in Japan Compared to the UK? 

The cost of living in Japan compared to the UK is generally higher when it comes to food, groceries, and various goods and services. While the prices of some foodstuffs are in line with what you would pay in the UK if not slightly cheaper, you will pay slightly more for many common foods and groceries. The table below offers some insight into what you can expect to pay for the basics in Japan.  

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Moving to Japan could be one of the biggest adventures of your life. Whether you decide to move to this fascinating country for new work opportunities, for further studies, or for your retirement, it’s sure to be an experience unlike any other. Sending money to Japan will be part of the process, and you need to be able to do that at good rates and without worrying about the safety of your money. Sign up for a personal account with Moneycorp and use our personal products and services to keep control of your forex.