The tax-free investment account, its 2024 limits, and how to think about it.
NISA is a tax-free investment account; since 2024 it allows ¥3.6M/year (¥18M lifetime) of investments whose gains are never taxed.
Since the 2024 renewal, NISA is a single permanent system with two frames you can use together: the tsumitate (accumulation) frame up to ¥1.2M a year for regulator-screened funds, and the growth frame up to ¥2.4M a year for a wider range — ¥3.6M combined annually, capped at ¥18M lifetime. Gains and dividends are never taxed, and there is no expiry on the exemption. If you sell, the lifetime capacity you used frees up again the following year.
NISA is a container, not an investment — what you put inside determines your risk. Most beginners research broad, low-cost index funds rather than individual stocks. Two cross-border cautions: US citizens and green-card holders face heavy US taxation on Japanese funds (PFIC rules), and NISA generally cannot continue after you leave Japan. Plan for both before committing large sums.
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.
Be very careful. Japanese mutual funds and ETFs are usually PFICs (Passive Foreign Investment Companies) for US tax, which triggers punitive US taxation and heavy Form 8621 reporting — and the NISA tax exemption does not apply to the US. Many US persons in Japan avoid Japanese pooled funds and instead hold US-domiciled assets, but rules are complex. Get advice from a cross-border US/Japan tax professional before investing.
This is education, not a recommendation. Most beginners research low-cost, broadly diversified index funds — for example all-country (全世界株式) or S&P 500 trackers — rather than picking individual stocks, because low fees and diversification are within your control while returns are not. Understand that values fall as well as rise, match the risk to your time horizon, and never invest money you may need soon.