Investing while living in Japan is straightforward once you understand the key account types and tax rules. The New NISA makes Japan one of the better countries for retail investors.

Start Here: Open a NISA Account

New NISA (2024 onwards) is Japan’s tax-free investment account — the most important account for any foreign resident investing in Japan.

  • ¥3.6M/year investment limit (¥1.2M growth investments + ¥2.4M regular savings)
  • ¥18M lifetime limit
  • All gains and dividends completely tax-free, indefinitely
  • Available to anyone with a Japanese residence card

👉 Full guide: NISA for Foreigners in Japan: Tax-Free Investing

Best Brokerages for Foreigners in Japan

SBI Securities (SBI証券) ⭐ Most Popular

Japan’s largest online brokerage.

  • No account maintenance fees
  • Lowest transaction fees for Japanese stocks and funds
  • Full NISA account support
  • English support limited but improving
  • Mobile app available

Rakuten Securities (楽天証券)

Strong runner-up; integrates with Rakuten ecosystem:

  • Earn Rakuten Points on investments
  • Pay NISA monthly installments with Rakuten Card (earn points on investments)
  • Good mobile app (iSPEED)
  • English support limited

Monex Securities (マネックス証券)

  • Good for US stock trading (lower fees on US stocks)
  • Useful for foreigners wanting global diversification

What to Invest In

For Beginners: Index Funds

The simplest, most recommended approach:

eMAXIS Slim 全世界株式（オール・カントリー）

  • Tracks the MSCI All Country World Index
  • 0.05775% annual fee (extremely low)
  • Invests across ~2,800 companies in 47 countries
  • Available at SBI, Rakuten, Monex

This single fund gives you exposure to the global market. Warren Buffett-style simplicity.

eMAXIS Slim 米国株式（S&P500）

  • Tracks the S&P 500 (US large caps)
  • 0.09372% annual fee
  • US-only but historically strong returns

Japanese Stocks (個別株)

Individual Japanese company stocks if you want to invest in Japan specifically:

  • Blue chips: Toyota, Sony, SoftBank, Recruit Holdings
  • Minimum purchase is typically 100 shares (varies by company price)

Japanese REITs (J-REIT)

Real estate investment trusts — good for dividend income from Japanese property without buying actual real estate.

Tax on Investments

Inside NISA: Completely tax-free — no reporting needed.

Outside NISA (Tokutei account / 特定口座):

  • Capital gains tax: 20.315% (15% national + 5% local + 0.315%)
  • Most brokerages offer 源泉徴収あり (withholding tax at source) — tax is automatically deducted, no separate filing needed

For US citizens: FATCA compliance complicates things significantly. Some brokerages won’t open accounts for US citizens. Consult a tax specialist.

Investing in Foreign Assets from Japan

You can invest in US stocks, ETFs, and global funds through Japanese brokerages. The process:

  1. Convert JPY to USD within your brokerage
  2. Buy US-listed ETFs (VTI, VOO, QQQ) or stocks
  3. Returns subject to Japanese capital gains tax (and potentially US withholding tax on dividends)

Dollar-Cost Averaging (積立投資)

The most recommended approach for beginners:

  • Set up a monthly automatic investment (積立 tsumitate) into an index fund
  • Even ¥5,000–10,000/month builds meaningful wealth over time
  • No timing decisions — removes emotion from investing