NISA (少額投資非課税制度) is Japan’s government-backed tax-free investment account — similar to ISAs in the UK or Roth IRAs in the USA. It’s one of the best ways for anyone living in Japan to invest, and foreigners can open one.
What Is NISA?
NISA allows you to invest in stocks, ETFs, and investment trusts without paying tax on gains or dividends within the account.
Outside of NISA, investment gains in Japan are taxed at 20.315%. Inside NISA: 0%.
The New NISA (from January 2024)
Japan overhauled the NISA system in 2024. The new version is significantly more generous:
| Feature | New NISA (2024+) |
|---|---|
| Annual contribution limit | ¥3.6 million/year |
| Lifetime limit | ¥18 million total |
| Duration | Indefinite (no time limit) |
| Withdrawal | Anytime; re-contribution possible |
| Two accounts | Growth (成長投資枠) + Tsumitate (つみたて投資枠) |
Two Compartments
つみたて投資枠 (Tsumitate — Accumulation)
- ¥1.2 million/year limit
- Only approved low-cost investment trusts (index funds)
- Designed for long-term monthly investing
成長投資枠 (Seicho — Growth)
- ¥2.4 million/year limit
- Individual stocks, ETFs, investment trusts
- More flexibility
You can use both simultaneously.
Who Can Open a NISA?
Requirements
- Resident of Japan with a registered address (住民登録)
- Aged 18 or older
- Has a My Number (マイナンバー)
- One NISA per person — cannot have multiple at different brokers simultaneously
Foreigners
Foreigners who are registered residents of Japan can open a NISA. You need:
- Residence card (在留カード)
- My Number card or notification slip
- Japanese bank account
- Japanese address registered at city hall
Non-residents cannot use NISA. If you leave Japan, your NISA is converted to a regular taxable account.
Best Brokers for Foreigners
SBI Securities (SBI証券) ⭐ Recommended
- Largest online broker in Japan
- Low fees; most investment trust selection
- English support improving
- sbisec.co.jp
Rakuten Securities (楽天証券)
- Strong English support and interface
- Integrates with Rakuten Bank for easy transfers
- Popular with foreigners
- Affiliated with Rakuten — earn Rakuten points on investments
Matsui Securities
- Good for beginners; clean interface
- Competitive fees
Opening Process
- Apply online (identity verification by photo upload or My Number)
- Receive account number by post (1–2 weeks)
- Transfer money and activate NISA
- Start investing
What to Invest In
For Beginners: Global Index Funds
The standard recommendation for NISA’s Tsumitate account:
eMAXIS Slim 全世界株式 (オール・カントリー)
- Invests in ~3,000 companies worldwide
- Annual fee: ~0.057% (extremely low)
- Available at SBI, Rakuten, and most online brokers
- Simply called “オルカン (Orukan)” by Japanese investors
eMAXIS Slim 米国株式 (S&P500)
- Tracks the US S&P 500 index
- Annual fee: ~0.09%
Both are among the most popular NISA investments in Japan.
Setting Up Monthly Auto-Investment
All major brokers let you set a monthly auto-investment amount (積立設定). Set it and forget it:
- Minimum: ¥100/month
- Most people invest ¥30,000–100,000/month
NISA vs Regular Account vs iDeCo
| NISA | Taxable Account | iDeCo | |
|---|---|---|---|
| Tax on gains | 0% | 20.315% | Tax-deferred |
| Contribution limit | ¥3.6M/year | Unlimited | ¥23,000–68,000/month |
| Withdrawal | Anytime | Anytime | Age 60+ only |
| Tax deduction on contribution | No | No | Yes |
| Best for | Long-term investing | Excess savings | Retirement (if staying in Japan) |
For most foreigners: NISA first, iDeCo only if you plan to retire in Japan.
Things to Know Before You Start
- You can only have one NISA — choose your broker carefully (can transfer after 1 year)
- If you leave Japan permanently: NISA holdings convert to taxable; gains may be taxed in your home country
- NISA losses cannot offset taxable gains — unlike regular accounts
- Currency risk: If investing in global funds, your returns are partly affected by yen exchange rate