What NISA is and is not, eligibility, both allowances, limits, eligible products, tax treatment, selling and reuse, dividends, and leaving Japan.
NISA is a Japanese tax wrapper — not a product or a guarantee — that exempts qualifying gains and dividends from Japanese tax, with a ¥1.2m recurring plus ¥2.4m growth allowance each year and an ¥18m lifetime acquisition-cost limit.
NISA (Nippon Individual Savings Account) is a statutory tax-exempt wrapper administered under FSA rules. It is not an investment product, not a savings account, and not a return guarantee — investments held inside it can and do lose money. Its single benefit is that qualifying gains, dividends, and distributions are exempt from the usual 20.315% Japanese tax, with an indefinite tax-free holding period.
Eligibility is residence-based: a Japan resident (or qualifying resident with a permanent establishment) who is at least 18 on January 1 of the account year may open one. Only one NISA institution can receive new purchases in a given year, though you may generally change institutions by year.
NISA has two allowances you can use together. The recurring-investment allowance (つみたて投資枠) is up to ¥1.2m per year, limited to specified long-term, diversified investment trusts and qualifying ETFs on the FSA list. The growth-investment allowance (成長投資枠) is up to ¥2.4m per year for a wider range — eligible listed shares, REITs, ETFs, and funds. Combined, the annual maximum is ¥3.6m.
The lifetime limit is ¥18m measured at acquisition cost, of which no more than ¥12m can be growth-allowance holdings. Crucially, allowance usage is measured by what you paid, not by current market value: a ¥1m purchase that rises to ¥1.6m still uses only ¥1m of lifetime capacity. Unused annual allowance does not carry forward.
When you sell a NISA holding, its acquisition cost is restored to your lifetime capacity from the following calendar year — not immediately, and the annual allowance you already used that year is not refreshed. A ¥1m purchase sold for ¥1.6m restores ¥1m (the cost), not ¥1.6m; a ¥1m purchase sold for ¥600k also restores ¥1m, and the ¥400k loss gives no deduction because it occurred inside NISA.
For listed shares, ETFs, and REITs, tax-free dividends generally require the proportional allocation method (株式数比例配分方式) so payment lands in the brokerage account; receiving via bank or warrant can trigger 20.315% withholding despite NISA. Foreign dividends may still face source-country withholding. And if you leave Japan, NISA generally cannot continue except in specific qualifying temporary-departure cases filed in advance.
Brokerage (NISA/iDeCo) · Rakuten Securities
A leading low-cost brokerage for NISA and index-fund investing, integrated with Rakuten points and Rakuten Bank.
Fees: Many domestic funds and trades are low- or no-commission — verify current fee schedule.
Brokerage (NISA/iDeCo) · SBI Securities
Japan’s largest online brokerage by accounts, with a very broad low-cost fund lineup and full NISA/iDeCo support.
Fees: Many trades and funds are low- or no-commission — verify current fee schedule.
Brokerage (NISA/iDeCo) · Monex
An established online brokerage often chosen for US-stock access and research tools, with NISA and iDeCo support.
Fees: Commissions vary by product; some funds/trades are low-cost — verify current schedule.
Generally yes, if you are a tax resident of Japan (with a My Number) and at least 18. NISA is tied to residency, not citizenship, so most foreign residents qualify — with two big cautions: US citizens and green-card holders face US tax complications with Japanese funds, and NISA generally cannot continue after you leave Japan. Confirm eligibility and the current rules on the FSA site and with your chosen brokerage.
NISA is a benefit for residents. When you lose Japanese tax residency you generally cannot keep contributing, and brokerages differ on whether the account is closed, frozen, or must be sold — some allow a temporary overseas-resident continuation for limited periods. Because the tax treatment of unwinding matters, plan your exit before building a large balance and ask your brokerage about their specific offshore policy.
They solve different problems. NISA is flexible: tax-free growth and you can withdraw anytime, making it the usual first choice. iDeCo gives a larger up-front tax break (contributions cut your taxable income) but locks money until age 60 and suits committed retirement saving. Many use NISA first for flexibility, then add iDeCo for the deduction if they are confident they will not need the money before 60. If you may leave Japan, iDeCo’s lock-up is a bigger drawback.