NISA foundations
Japan’s tax-free investment account: what it is, how the 2024 system works, and how to begin.
- Explain what NISA is and why tax-free growth matters
- Understand the growth and tsumitate portions and limits
- Choose a first account and a sensible default fund type
- 1
What NISA is and why it matters
Lesson 1 · 6 minNormally, investment gains in Japan are taxed at about 20%. Inside a NISA account, eligible gains and dividends are tax-free. Over decades, keeping that 20% invested compounds into a meaningful difference.
NISA is a wrapper, not an investment itself. You open a NISA account at a brokerage, then buy funds or stocks inside it. The tax break comes from where you hold the investment, not what you buy.
The 2024 "new NISA" made the system permanent, larger, and simpler than the older versions — which is why older guides can be misleading.
Key takeaways- NISA makes eligible gains and dividends tax-free
- It is a wrapper — you still choose what to buy inside
- The 2024 system is permanent, larger, and simpler
Quick self-check: Does NISA decide what you invest in?
No — NISA is a tax-free wrapper. You still choose the funds or stocks held inside it; the benefit is the tax treatment, not the selection.
- 2
The two portions and the limits
Lesson 2 · 5 minNew NISA has two portions used in the same year: the tsumitate portion (つみたて投資枠) for regular, low-cost fund investing, and the growth portion (成長投資枠) for a wider range including individual stocks.
There is an annual limit across both portions and a larger lifetime holding limit. When you sell, that lifetime room is restored the following year — a flexibility the old system lacked.
For most beginners, steady monthly investing into a broad, low-cost index fund inside the tsumitate portion is the sensible default. You do not need to use the full limit to benefit.
Key takeaways- Tsumitate portion = regular low-cost funds; growth = wider
- Annual and lifetime limits; sold room returns next year
- A broad index fund via tsumitate is a sensible default
- 3
Opening an account and starting
Lesson 3 · 5 minYou may hold a NISA account at only one provider per year, so the choice matters. Online brokerages such as Rakuten, SBI, and Monex are popular for low fees, fund range, and app usability.
Opening requires your My Number and identity documents, plus a tax-office check that can take days. Once open, you set a monthly amount and a fund, and it runs automatically.
Residency matters: NISA is for residents of Japan, and leaving the country affects the account. Learn the exit rules before you go if that is on your horizon.
Key takeaways- One NISA provider per year — choose carefully
- Needs My Number and a tax-office check (a few days)
- NISA is for residents; leaving Japan has rules