01
What is NISA?
NISA is Japan’s tax-exempt investment account system for individuals. Gains and dividends from listed securities are normally taxable; when an eligible investment is held in NISA, qualifying returns are tax-free within the account rules.
02
Why do investors in Japan consider NISA first?
The main attraction is tax efficiency. Eligible returns are tax-exempt, and the account can support long-term investing, recurring contributions, and selected funds, ETFs, and stocks.
NISA does not guarantee a profit or make an investment low-risk. You can still lose part or all of the money invested.
03
How much tax can NISA save?
Consider a simplified example.
In a taxable account, the ¥1 million gain would normally be taxed. Using the common 20.315% rate for listed securities as a simplified illustration, the tax would be about ¥203,000. A qualifying gain in NISA would be tax-free. Actual tax treatment depends on the type of return, payment method, and individual circumstances.
04
The main NISA allowances in 2026
A sale does not restore that year’s annual quota. The acquisition cost of what you sold can be reused in the lifetime holding limit from the following year. What returns is the cost, not the sale proceeds.
Official sources: Japan Financial Services Agency, Japan National Tax Agency
05
How do the two NISA quotas differ?
Swipe horizontally to see the full table.
| Comparison | つみたて投資枠 | 成長投資枠 |
|---|---|---|
| Annual limit | ¥1.2 million | ¥2.4 million |
| Typical use | Long-term recurring investment | Recurring or lump-sum investment |
| Main products | Approved funds and some ETFs | Eligible stocks, ETFs, and funds |
| May suit investors who | Want a steady long-term routine | Want a wider choice and can research it |
Neither quota is inherently better. The right fit depends on your time horizon, product needs, risk tolerance, and investing experience.
06
What can you invest in through NISA?
What you can hold depends on whether you use the Tsumitate Investment Quota or the Growth Investment Quota. The Tsumitate quota is the stricter list. The Growth quota is wider, and it still does not accept every product. Each product has to be checked on its own.
07
What risks remain in NISA?
A falling price can leave you with less than you invested.
Business, financial, and industry changes can affect a stock.
Diversification does not prevent broad market declines.
Exchange rates can change the yen value of overseas assets.
NISA is a tax framework, not a safety guarantee. A long holding period may change how you experience volatility, but it cannot guarantee a profit.
08
NISA versus a taxable brokerage account
Swipe horizontally to see the full table.
| Comparison | NISA account | Taxable brokerage account |
|---|---|---|
| Tax on returns | Eligible returns are tax-free | Returns are generally taxable |
| Product range | Restricted by NISA rules | Generally wider |
| Tax treatment of losses | Cannot generally offset taxable gains | Offset and carryforward may be available |
| Investment limit | Annual and lifetime limits | No NISA-style allowance |
09
How is NISA different from iDeCo?
NISA
- More flexible access to your money
- Eligible investment returns are tax-free
- Investments can generally be sold at any time
iDeCo
- Designed primarily for retirement
- Contribution and withdrawal rules apply
- Uses a different set of tax benefits
They serve different goals and offer different access to your money, so the comparison is broader than tax savings alone.
10
Can foreign residents use NISA?
NISA is not limited to Japanese citizens. Under the current adult system, the basic statutory test is being age 18 or older and qualifying as a resident of Japan. Foreign residents must also complete identity, My Number, and financial-institution checks. Permanent residence is not a universal requirement.
A work, business manager, student, or dependent status does not by itself produce an automatic yes or no. Residence facts, tax status, period of stay, and the provider’s rules all matter.
If you leave Japan and become a non-resident, the rules for holding or trading in the account may change. Check with your provider before departure.
11
How to get started with NISA
- 1Choose a NISA provider
Compare products, fees, service, and language support.
- 2Open a brokerage account
Apply with the documents required by the provider.
- 3Apply for a NISA account
In principle, each person can have one NISA account.
- 4Complete identity checks
Provide identity and My Number documentation.
- 5Choose an investment
Confirm that it is eligible for the quota you plan to use.
- 6Start investing
Follow your plan and review its risks periodically.
12
Common approaches for new investors
Monthly contributions
Invest on a regular schedule instead of choosing a single entry point.
Diversified funds
One product can spread money across many holdings, but scope and fees still matter.
ETF
Exchange-traded funds can cover broad indexes, regions, or themes and trade throughout the day.
Individual stocks
Direct company ownership requires research into the business, finances, valuation, and company-specific risks.
The right approach depends on risk tolerance, time horizon, and experience. There is no single best choice for everyone.
13
Tax and losses inside NISA
A qualifying gain on a sale is tax-free within the account rules. Selling does not by itself erase the lifetime holding limit. The annual allowance you already used does not come back in the same year.
Eligible dividends and distributions can also be tax-free. For a dividend on a Japanese listed stock, choosing to receive it through the broker under the proportional-allocation method can be part of that treatment.
A loss inside NISA generally cannot be netted against gains in a taxable account, and it generally cannot be carried forward. Tax-free treatment and the ability to use a loss on a tax return are different things.
14
NISA if you leave Japan
Once you are a non-resident for Japanese tax purposes, holding the account, trading in it, and the tax-free treatment can change. A short assignment with a plan to return is not the same procedure as leaving for good or moving to a third country.
Contact the financial institution when the departure is decided, not after you have left. Ask whether the holding can stay, whether it moves to a taxable account, which documents are required, and what happens if you become a resident again. The answer follows the rules in force then.
15
Frequently asked questions
What is NISA?
NISA is Japan’s tax-exempt investment account system for individuals. Eligible gains and dividends can be tax-free, but NISA itself is not a stock, fund, or guaranteed-return product.
Can foreign residents use NISA?
Potentially, yes. Eligibility generally depends on qualifying as a resident of Japan and completing the financial institution’s identity and account checks—not on citizenship alone.
Do I need Japanese citizenship or permanent residence?
Neither is a universal statutory requirement for NISA. Ask the financial institution which residence status and documents it accepts for account opening.
How much can I invest each year?
For adults, the annual limit is ¥1.2 million in the Tsumitate Investment Quota and ¥2.4 million in the Growth Investment Quota. They can be combined for up to ¥3.6 million a year.
Can I buy stocks in NISA?
The Growth Investment Quota can hold eligible listed shares. Not every security qualifies, and availability also depends on the financial institution.
Can I buy ETFs in NISA?
Yes, when the ETF meets the applicable NISA requirements and is offered by your financial institution.
Can I lose money in NISA?
Yes. NISA changes the tax treatment; it does not protect your principal from market, company, or currency risk.
Can I use both NISA quotas?
Yes. The Tsumitate and Growth quotas can be used in the same year, subject to their separate limits and product rules.
How is NISA different from a taxable account?
Eligible NISA returns are tax-exempt, but the account has contribution and product limits. NISA losses generally cannot offset gains in taxable accounts.
What happens if I leave Japan?
The treatment of your NISA holdings may change if you become a non-resident. The rules depend on your circumstances and financial institution, so check before departure.
This page provides general information, not tax, legal, or investment advice. Regulations and financial-institution procedures can change. Confirm the latest rules with Japan’s Financial Services Agency, National Tax Agency, and your chosen provider before opening an account or trading.