If you’re living in Japan and thinking about investing, you’ve probably heard of NISA — Japan’s tax-free investment scheme. But what exactly is it, and can foreigners use it too? Let’s break it down in a simple and easy-to-understand way 🧩

🌱 What is NISA?

NISA (Nippon Individual Savings Account) is a government-supported investment account that allows you to invest in stocks, mutual funds, and ETFs without paying taxes on profits or dividends up to a certain limit.

Originally launched in 2014, NISA was designed to encourage more people in Japan to grow their wealth through long-term investing — similar to the UK’s ISA.

🆕 Two Types of NISA (from 2024)

In 2024, the NISA system was restructured into a new, permanent system with two main investment slots:

1. Tsumitate (積立) NISA – Regular Monthly Investing

  • For long-term, stable investments like index funds
  • Maximum: ¥1.2 million/year
  • Suitable for beginners and passive investors

2. Growth Investment NISA (成長投資枠) – Flexible Investing

  • For stocks, ETFs, and more active investments
  • Maximum: ¥2.4 million/year

🧮 Total Tax-Free Limit: ¥3.6 million per year
🕰️ Lifetime tax-free investment cap: ¥18 million

💡 Key Benefits of NISA

  • ✅ No capital gains tax on profits
  • ✅ No tax on dividends
  • ✅ Easy to open at most banks or securities companies
  • ✅ Ideal for long-term wealth building

🌍 Can Foreigners Use NISA?

Yes — but there are some conditions:

✅ You can open a NISA account if:

  • You are a resident of Japan
  • You have a My Number (マイナンバー)
  • You hold a zairyu card (在留カード)

🛑 However, non-residents (those who move abroad or are tourists) cannot maintain a NISA account.

So, if you’re a foreigner living in Japan long-term, you can enjoy the tax-free benefits of NISA just like Japanese citizens!

🏦 Where Can You Open a NISA Account?

You can open a NISA account at:

  • Major Japanese banks (e.g. MUFG, Mizuho, SMBC)
  • Online brokers (e.g. SBI Securities, Rakuten Securities)
  • Local post offices

🔁 Note: You can only have one NISA account per person, even if you have multiple financial institutions.

📝 Final Thoughts

NISA is a powerful tool to grow your money without paying taxes in Japan. Whether you’re a Japanese citizen or a long-term foreign resident, it’s worth considering if you want to build wealth slowly and steadily 📈