What becomes tax-free
Gains and dividends on listed securities are normally taxed. When you buy an eligible product inside a NISA account and meet the rules, that return is tax-free. The same product bought outside the account is not.
The new NISA is the current form of this account. How much you can buy in a year, how much you can hold tax-free over time, and which products qualify are explained on the quota and rules pages.
Who can use it
For the current adult system, the basic test is being 18 or older on 1 January of that year and qualifying as a resident of Japan. It is not limited to Japanese citizens. Identity checks, a My Number, and the institution’s review are still required.
The basic difference from a taxable account
The difference is the tax on qualifying returns, plus limits on how much you can invest and what you can buy.
Swipe horizontally to see the full table.
| Comparison | NISA account | Taxable account |
|---|---|---|
| Qualifying returns | Tax-free within the rules | Generally taxed |
| What you can buy | Products allowed for each quota | Usually a wider range |
| Limits | An annual quota and a lifetime holding limit | No NISA-style allowance |
How the two quotas sit together
Purchases in the new NISA are split between the Tsumitate quota and the Growth quota. Tsumitate is for eligible long-term, recurring, diversified products. Growth can include eligible listed stocks, ETFs, and funds. You can use both in the same year.
Neither quota is always the better one. Amounts and what happens after a sale are on the limits page. Product differences are on each quota page.
Common misunderstandings
eMAXIS Slim and All Country are products. NISA is the account those products can be held in.
No tax on a gain is not the same as a stable price. You can sell for less than you invested.
Limits, tax, residency, and the account-opening steps are in the guides linked from this explanation.
Questions on this page
What is NISA?
It is Japan’s account system that makes qualifying investment gains tax-free within set rules. It is not a product name.
Is the new NISA a different account?
The name points at the current system, not a second account. The full overview is the new NISA guide.
What should I read next?
Read the Tsumitate and Growth pages for the quotas, or the starter guide for the sequence of opening an account.
Related pages
When the answer depends on your situation
Residency, length of stay, which quota you want, and the amount are personal. After the published explanation, you can put those facts into a question.
Official sources: Japan Financial Services Agency, NISA site, National Tax Agency, No. 1535 NISA
This page is general information, not tax, legal, or investment advice. Amounts and procedures can change. Before you trade or file, check the latest material from the Financial Services Agency, the National Tax Agency, and your financial institution.