NISA for Foreigners in Japan: Complete 2026 Guide

What is NISA? — 少額投資非課税制度

NISA (Nippon Individual Savings Account) is Japan's tax-advantaged investment program, officially called 少額投資非課税制度. It was modeled after the UK's ISA (Individual Savings Account) and serves a similar purpose to a Roth IRA in the United States: you invest after-tax money, and all your gains grow completely tax-free.

The program was completely overhauled in January 2024 with the launch of 新NISA (New NISA). Under the new system, all investment gains — capital gains and dividends — are permanently tax-free. There is no time limit on the tax exemption; once money is in your NISA account, it stays tax-free forever, no matter how long you hold.

To understand why this matters, consider what happens without NISA. If you invest through a regular taxable brokerage account (特定口座) in Japan, your gains are taxed at 20.315%. That breaks down as:

• 15% income tax (所得税)
• 0.315% special reconstruction tax (復興特別所得税)
• 5% resident tax (住民税)

On a ¥1,000,000 gain, that's ¥203,150 in taxes — gone. Inside a NISA account, you keep every yen. Over a decade of compounding, the difference can be enormous.

Think of it this way: NISA is a special "tax-free box" the Japanese government gives you. Any investments you put inside this box grow without the government ever taking a cut. The box has a size limit (¥3.6M per year, ¥18M lifetime), but within those limits, your returns are 100% yours.

Who can open a NISA account? — 口座開設の条件

Good news: NISA is available to virtually all foreigners living in Japan. There's no citizenship requirement and no minimum income threshold. You just need to meet these requirements:

• Resident of Japan — you must have a 住民登録 (resident registration) at your local ward/city office
• Valid visa — any visa type that allows residency in Japan (work visa, spouse visa, permanent residency, etc.)
• Age 18 or older — as of January 1st of the year you want to open the account
• マイナンバー (My Number) — required for the application. If you don't have a マイナンバーカード yet, a notification card (通知カード) with your current address works too
• One account per person — you can only hold one NISA account at any given time. You can transfer it between brokers, but you cannot have two active NISA accounts simultaneously

NISA limits & types — 投資枠の種類と上限

Under 新NISA, there are two investment slots (枠) that you can use simultaneously. Think of them as two compartments inside your tax-free box, each with different rules:

The combined annual maximum is ¥3,600,000 per year. You can use both slots simultaneously — for example, ¥1.2M in つみたて投資枠 and ¥2.4M in 成長投資枠, maxing out both.

The lifetime limit is ¥18,000,000 across both slots combined. But here's the key detail: when you sell investments, that space resets the following year. So the ¥18M limit is reusable — it's measured by your current holdings' acquisition cost, not your cumulative lifetime contributions.

How to open a NISA account — 口座開設の手順

Opening a NISA account is straightforward, though the verification process takes a bit of patience. Here's the step-by-step:

What to invest in — おすすめの投資先

NISA gives you access to a wide range of investments, but for the つみたて投資枠 slot, you're limited to funds on the 金融庁 approved list — which is actually a good thing, as these are low-cost, diversified funds vetted by the regulator. Here are the most popular choices among foreigners in Japan:

The overwhelming favorite is eMAXIS Slim 全世界株式, commonly called "オルカン" (All Country). It gives you exposure to roughly 3,000 stocks across 47 countries at an expense ratio of just 0.05775% — that's cheaper than most Vanguard funds. If you've ever invested in VT (Vanguard Total World Stock ETF), this is the Japanese equivalent.

The S&P 500 fund is the second most popular pick, especially among those who are bullish on US equities. It tracks the same 500 large-cap US companies you'd get from a VOO or SPY ETF.

The 先進国株式 fund is for those who want developed-market exposure without Japan (useful if you already have Japan exposure through your employment or other investments).

For most foreigners, the decision comes down to: all-world or S&P 500. Both are solid, well-diversified, and incredibly cheap. Many people simply pick one and set up automatic monthly contributions.

NISA vs iDeCo — どっちがいい？

NISA and iDeCo (個人型確定拠出年金) are Japan's two main tax-advantaged investment options. They serve different purposes and can be used together. Here's how they compare:

The key difference: iDeCo gives you a tax deduction NOW (your contributions reduce your taxable income, saving you 20-30% immediately), but your money is locked until age 60. NISA doesn't give you an upfront tax break, but you can withdraw anytime.

For most foreigners, the recommendation is: start with NISA first. The flexibility to withdraw anytime is crucial when you're not sure how long you'll stay in Japan. If you're confident you're staying long-term (10+ years) and want to reduce your annual tax bill, add iDeCo on top of NISA. You can have both simultaneously.

One important note for foreigners: if you leave Japan before age 60, iDeCo becomes complicated. You may need to convert it to a 脱退一時金 (lump-sum withdrawal) under certain conditions, and the rules are strict. NISA is much simpler when leaving Japan.

Leaving Japan? — 日本を離れるとき

This is one of the most common questions from foreigners with NISA accounts. The good news: you don't necessarily have to sell everything when you leave. Here's how it works:

• Notify your broker before leaving — contact them well in advance (at least 1 month) to start the process
• Account can be kept frozen for up to 5 years — by filing a 海外転出届 (overseas relocation notification), your NISA account is "frozen." Your existing investments stay in place and remain tax-free
• No new investments while abroad — you cannot buy anything new or make additional contributions during the frozen period
• Existing investments remain tax-free — any gains that accrue while you're abroad are still within the NISA tax exemption
• If gone more than 5 years, must close account — if you don't return to Japan within 5 years, the account must be closed. Your investments would be transferred to a regular taxable account or sold
• Check your home country's tax treatment — some countries (notably the US) do not recognize NISA as a tax-exempt account. US tax residents, for example, may owe US taxes on NISA gains even while living in Japan. Consult a cross-border tax specialist

Frequently Asked Questions — よくある質問