NISA in Japan for Foreigners: How the Account Works | MyKyoten

Last verified: 2026. This guide is based on Immigration Bureau regulations, Ministry of Health Labour and Welfare guidelines, and standard Japanese administrative practice. It is informational only and does not constitute legal advice. Consult a licensed immigration attorney or official government sources for case-specific guidance.

This explains how the system works. It is not investment advice and does not recommend any specific product, fund, or strategy. Consult a licensed financial advisor for guidance specific to your situation.

Your Japanese colleagues are probably using NISA. Your payslip shows taxes leaving your account every month. And the annual contribution window resets every January whether you use it or not. This guide explains exactly how NISA works for foreign residents in Japan, who qualifies, and what happens if your visa situation changes.

Who Actually Qualifies to Open a NISA Account?

The core rule is straightforward: you must be a resident of Japan as defined under Japanese tax law, aged 18 or older, and registered at a Japanese address. Foreign nationality alone does not disqualify you.

The Financial Services Agency specifies that non-residents are ineligible. "Non-resident" in this context means anyone who does not have a registered address in Japan under the Juminhyo (resident registration) system. This is why residency registration matters far beyond just getting a library card.

The one visa category that disqualifies you immediately is the Short-Term Stay visa (tanki taizai). Holders of this status are not permitted to register as residents, which means they cannot open a NISA account, period. If you are on a tourist visa or short-term business entry, you are excluded from the start.

Every other standard work visa category, including Engineer/Specialist in Humanities/International Services, Skilled Labor, Specified Skilled Worker (both Type 1 and Type 2), Spouse of Japanese National, and Permanent Resident, is eligible, provided you are properly registered at your address. Confirming your visa status against work permissions is something the Visa Work Checker can help you verify before you take any steps.

→ Use the Document Decoder to translate and understand your Japanese administrative documents.

What Does It Actually Take to Open the Account?

Step-by-Step Checklist: Opening a NISA Account as a Foreign Resident 1. Confirm you have a valid My Number (Individual Number). If you have not received or activated yours, check the My Number Card guide first. 2. Ensure your Juminhyo address is current. Any mismatch between your residence card and registered address creates rejection at verification. If you recently moved, see the address change reporting guide. 3. Choose a brokerage. SBI Securities and Rakuten Securities both offer partial English interfaces and accept foreign residents. Monex and au Kabu.com are Japanese-only. Online application is standard. 4. Upload or submit: your residence card (both sides), My Number card or notification slip, and proof of address (utility bill or bank statement dated within the past 3 months). 5. Complete the tax residency declaration form. This is where you declare whether Japan is your primary tax residence. Answer based on your actual situation, not what seems convenient. 6. Wait for account verification, typically 1 to 2 weeks for online applications, up to 3 to 4 weeks if documents are mailed. 7. Fund the account and select your investment type (Tsumitate or Growth, detailed below).

One practical reality based on reports from foreign residents: verification delays are more common for foreign applicants because the name on your residence card may not match exactly how your name appears on other documents. Katakana rendering of foreign names is a frequent friction point. If your application stalls, calling the brokerage's customer service line and asking to speak with a representative who handles foreign accounts can move things forward.

What Does "Tax-Free" Actually Mean in Yen Terms?

In a standard taxable investment account in Japan, gains and dividends are taxed at 20.315% (20% national income tax plus 0.315% reconstruction special tax). NISA removes this entirely for eligible investments held within the account.

Here is what the difference looks like in concrete numbers. Suppose you invest 100,000 yen per month into an index fund through a taxable account and, over one year, that produces 60,000 yen in capital gains. In a taxable account, you owe approximately 12,189 yen in tax on that gain. Inside a NISA account, that 12,189 yen stays in your portfolio. Over multiple years, at higher contribution levels, the cumulative difference becomes substantial.

Dividends from foreign stocks held in NISA are a partial exception. Foreign dividend withholding tax (for example, 10% on US-listed stocks under the Japan-US tax treaty) is applied at the source country level before the dividend reaches your account. NISA exempts Japanese domestic taxation on those dividends, but it cannot reclaim tax already withheld abroad. This is a detail many NISA guides omit.

Comparison Table: Taxable Account vs NISA Account | Feature | Taxable Account | NISA Account | |---|---|---| | Tax on capital gains | 20.315% | 0% | | Tax on domestic dividends | 20.315% | 0% | | Tax on foreign dividends | Source country rate | Source country rate only | | Annual contribution limit (2025) | No limit | 1.8M yen total (Growth + Tsumitate combined) | | Lifetime limit | No limit | 18M yen | | Carry-forward of unused allowance | N/A | Not permitted |

The 2025 Contribution Limits and the Two Account Types Explained

The current NISA framework, introduced in January 2024, operates with two tracks inside a single account.

Tsumitate (積立) NISA: Limited to regular, scheduled purchases of FSA-approved investment trusts. The annual limit is 600,000 yen. This track is structured specifically for regular monthly contributions.

Growth (成長投資枠) NISA: Allows lump-sum purchases and a broader range of products including individual stocks. The annual limit is 1,200,000 yen.

The combined annual cap across both tracks is 1,800,000 yen. The lifetime holding limit is 18,000,000 yen per person.

To make this concrete: a Brazilian software developer on an Engineer/Specialist in Humanities visa, earning 450,000 yen per month gross, might reasonably allocate 50,000 yen per month to the Tsumitate track. That is 600,000 yen used in one year, the full Tsumitate allowance. They could simultaneously use up to 1,200,000 yen in the Growth track during the same calendar year.

Unused annual allowance does not roll over. If you contribute nothing in 2025, you do not get 3,600,000 yen of space in 2026. Each year's window closes on December 31.

You can decode your payslip to understand your current tax deductions and how much post-tax income you actually have available using the Payslip Decoder.

Warning Box: What Happens If You Open a NISA Account and Then Leave Japan If you transfer abroad and lose resident status, your NISA account does not automatically close, but it becomes non-compliant. You are required to notify your brokerage within a specific window (generally interpreted as the same notification obligation that applies to any status change). After you deregister from the Juminhyo system, you become a non-resident for tax purposes, and NISA contributions are no longer permitted. Holdings already in the account do not trigger an immediate tax bill simply because you left. However, if you do not transfer those holdings to a taxable account within the required period, brokerages may move them automatically. Gains realized after you lose resident status may be subject to Japanese withholding tax depending on the tax treaty between Japan and your destination country. Act before you deregister at the city hall, not after. Once you are a non-resident on paper, your options narrow quickly. If you are planning a departure, the Leaving Japan Calculator can help you map out the financial and administrative timeline.

What If Your Visa Status Changes Inside Japan?

What if you change from a work visa to a Spouse of Japanese National visa? NISA eligibility is based on residency, not specific visa category. As long as you remain registered in Japan and your new visa maintains resident status, your account continues normally. No action required.

What if you are on a Designated Activities visa following company closure? This is more complex. Designated Activities covers many sub-categories. If you retain resident status and your Juminhyo registration is valid, technical eligibility exists. However, your employment and income situation may affect the practical aspects of continued contributions. Checking your immigration compliance posture with the Immigration Risk Checker is advisable before making financial commitments tied to your stay length.

Permanent residents have the cleanest NISA situation: no visa renewal risk, no activity restrictions, and no complications from employer changes. If you are approaching PR eligibility, the permanent residency guide explains the pathway and how financial stability factors into the assessment.

Your next step: log into your municipality's online resident registration portal or visit city hall, confirm your Juminhyo is current and accurate, then open the brokerage application that offers an English interface and have your residence card and My Number ready before you start the form.

Can I open a NISA account if I just arrived in Japan on a work visa? Yes, provided you have completed resident registration at your local city hall and received your My Number. You cannot open the account before registering your address. Most new arrivals can register within the first week of arrival, and My Number notification typically arrives by post within 2 to 4 weeks after registration.

What happens to my NISA if my employer sponsors my visa and I change jobs? The NISA account is held in your name, not your employer's. Changing jobs does not affect the account directly. If your new employer requires a change of status of residence, ensure you complete that correctly. The job change reporting guide covers the notification obligations involved.

Do I need to file a Japanese tax return because of NISA? NISA gains are non-taxable and are not reported as income on your tax return. If all your investments are held inside NISA, those holdings create no tax filing obligation. Gains in taxable accounts are a separate matter and may require filing depending on how your account is configured.

If your payslip deductions look unfamiliar or you want to understand exactly how much of your salary is already going to taxes before you plan any NISA contributions, the Payslip Decoder reads Japanese payslip fields and translates each line into plain English so you can see your actual take-home picture clearly.