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The New NISA (2024 Onward)

New NISA Japan is the 2024-onward tax-free investment wrapper for residents of Japan. It shelters qualifying dividends and capital gains from Japanese tax inside two annual quotas that share one lifetime cap.12

Confirm current details with official sources

Procedures, fees, and requirements can change. Confirm current details at the Financial Services Agency NISA site and the National Tax Agency guidance. This article is general information, not legal, tax, or investment advice; for your specific case, consult a licensed tax accountant (税理士).

Overview​

The 新NISA (shin NISA, "new NISA") started in January 2024 as a permanent system with an indefinite tax-free holding period.13 It replaced the choice between general NISA and tsumitate NISA with a single account that can use both a tsumitate quota and a growth quota together.1

The wrapper covers listed stocks, eligible investment trusts, ETFs, and REITs up to annual and lifetime limits tracked by purchase cost.12 Market risk stays with the holder; only the Japanese tax on gains and dividends inside the wrapper is removed.1

The Two Quotas​

The two quotas share one account at one institution at a time. You can use either quota alone or both together in the same year.14

Tsumitate quota: regular investment in approved funds​

The つみたて投資枠 (tsumitate toshi-waku, "accumulation investment quota") allows up to 1,200,000 JPY per year (as of 2026-09-07; confirm current figures with the Financial Services Agency).12

Eligible products are limited to investment trusts suited to long-term accumulation and diversified investing, as designated by the Financial Services Agency.1 Purchases use the accumulation method, typically monthly automatic contributions.45

The Financial Services Agency publishes the eligible-products list, and each brokerage offers only a subset of it (as of 2026-08-31).6 You can fill the entire lifetime cap using only the tsumitate quota if you prefer steady automatic investing.4

ItemAmountAs ofNotes
Tsumitate annual quota1,200,000 JPY2026-09-0712Approved funds only, accumulation method

Growth quota: broader universe for lump-sum or regular buys​

The 成長投資枠 (seichō tōshi-waku, "growth investment quota") allows up to 2,400,000 JPY per year (as of 2026-09-07), for a combined annual total of up to 3,600,000 JPY (as of 2026-09-07).12

Eligible products include listed stocks, investment trusts, ETFs, and REITs.1 Excluded are delisting-risk or supervised stocks, trusts with terms under 20 years, monthly-distribution funds, and certain high-leverage derivative funds.14

Either lump-sum or regular purchases work in this quota.45 Growth-quota use counts toward an inner lifetime limit of 12,000,000 JPY (as of 2026-09-07).12

ItemAmountAs ofNotes
Growth annual quota2,400,000 JPY2026-09-0712Broader universe with exclusions
Combined annual quota3,600,000 JPY2026-09-0712Tsumitate plus growth together
Growth lifetime inner cap12,000,000 JPY2026-09-0712Within the 18M JPY total

Lifetime Cap and Reuse on Selling​

The 非課税保有限度額 (hikazei hoyu gendo-gaku, "tax-free holding limit") is 18,000,000 JPY in total per person (as of 2026-09-07; confirm current figures with the Financial Services Agency).12 Tracking uses 簿価 (boka, "book value, acquisition cost"), not market value, so growth above cost does not consume extra cap.14

Book value decides quota, market value does not

Quota consumption equals what you paid. A holding bought for 1,000,000 JPY still counts as 1,000,000 JPY even if it later trades higher or lower.14

When you sell, quota equal to the sold holding's book value is restored in the following year onward and can be reused.14 The restored amount is the purchase cost, not the sale proceeds.1

Holdings bought under pre-2024 NISA sit outside the new cap and keep their old tax-free periods. No rollover into the new system is allowed.12

ItemAmountAs ofNotes
Lifetime cap total18,000,000 JPY2026-09-0712Book-value basis, both quotas combined

Tax Treatment: What Is Tax-Free and What Is Not​

Dividends and capital gains on qualifying holdings in either quota are exempt from Japanese tax.12 Outside NISA, such income is normally taxed at about 20% (20.315%: 15.315% income tax including reconstruction surtax plus 5% residence tax) (as of 2025-04-01; confirm current figures with the National Tax Agency).2

Listed-stock dividends are tax-free only when received through the 株式数比例配分方式 (kabushiki-su hirei haibun hoshiki, "proportional-to-shares dividend receipt method") via the brokerage account.2 Dividends paid directly by the issuer outside that channel are taxable.2

Losses inside NISA stay inside NISA

A loss realized in a NISA account is deemed nonexistent for tax purposes. It cannot offset gains or dividends in a taxable account and cannot be carried forward.27

Pre-2024 baselines help explain why the new system matters for long-tenure residents. General NISA allowed 1,200,000 JPY per year with a 5-year holding period (as of 2024-01 reform baseline), while tsumitate NISA allowed 400,000 JPY per year with a 20-year holding period (as of 2024-01 reform baseline).2

Eligibility and How to Open a NISA Account​

NISA rules are uniform nationwide. Home-country tax treatment is not; residents who are taxed elsewhere should check that country's rules separately.12

Who can open as a foreign resident​

Any person 18 or older as of January 1 of the account year who lives in Japan may open an account.12 Nationality is not a criterion. Foreign residents on mid- to long-term status with a registered address and a マイナンバー (mai nanbā, "My Number, individual taxpayer identifier") qualify on the same terms.15

Tourist or short-stay status does not qualify because residence is required.15 One NISA account per person applies, at one financial institution at a time, with institution changes allowed once per calendar year.14

Holders of pre-2024 NISA accounts had a new NISA account opened automatically at the same institution. New users must apply through a bank or brokerage.4

Account opening steps and documents​

The flow below sketches the standard brokerage path for a resident applicant.

Open a standard brokerage account first, then apply for the NISA designation in the same application or as an add-on.5 The brokerage submits the registration to the tax office, and approval typically takes days to weeks (practitioner-reported timing).5

In practice, prepare a My Number Card (or notification plus photo ID), a residence card showing the current registered address, a Japanese bank account for funding, and a Japanese phone number for verification (practitioner-reported list; the Financial Services Agency states only residence plus age).15 A broker-affiliated bank simplifies funding linkage, but Japan Post Bank or city banks also work.5

New NISA vs Old NISA​

The old system forced a choice between general NISA and tsumitate NISA. The new system lets one account use the tsumitate quota and the growth quota together.13

The tax-free holding period was 5 years for general NISA and 20 years for tsumitate NISA. The new holding period is indefinite.12

The system itself changed from time-limited to permanent, with no account-opening deadline.13 Annual capacity rose from 400,000 JPY for tsumitate and 1,200,000 JPY for general (as of 2024-01 reform baseline; confirm current figures with the Financial Services Agency) to 1,200,000 JPY plus 2,400,000 JPY for a combined 3,600,000 JPY (as of 2026-09-07).12

Junior NISA for minors ended with 2023 purchases. Post-2024 NISA covers adults 18 and older.23

For most long-tenure residents, the combination of permanent status, indefinite holding, higher annual quotas, and lifetime-cap reuse makes the new structure materially more useful than the old time-limited brackets. Treat this comparison as reference, not investment advice; product choices depend on individual circumstances.

ItemAmountAs ofNotes
Old tsumitate annual quota400,000 JPY2024-01 reform baseline220-year holding
Old general annual quota1,200,000 JPY2024-01 reform baseline25-year holding
New combined annual quota3,600,000 JPY2026-09-0712Indefinite holding
New lifetime cap18,000,000 JPY2026-09-0712Reusable on sale

Good to know​

Set the proportional dividend receipt method or dividends are taxed​

Even holdings bought inside NISA lose the dividend exemption if the receipt channel is wrong. Only dividends delivered via the brokerage under the proportional method qualify; issuer-direct payments are taxed.2 Check the setting before the record date, because a late switch can miss the payout.2

NISA losses cannot offset gains elsewhere​

A NISA loss cannot shelter gains or dividends in a specified or general taxable account. The three-year loss carryforward available to taxable listed-stock losses does not apply inside NISA.27 Selling at a loss inside NISA simply ends that position with no tax benefit.2

Leaving Japan usually ends NISA eligibility​

NISA requires Japan residence, so permanent departure generally ends eligibility and forces closure or sale steps that vary by broker.15 Confirm the departure procedure with the provider before moving, and update address records at the ward office while still resident to avoid mismatches.5

US persons still owe home-country tax on NISA holdings​

NISA removes Japanese tax only. Residents taxed on worldwide income, notably US persons, may still owe home-country tax and face reporting such as PFIC treatment on Japanese funds.2 Confirm with a tax accountant before assuming a NISA balance is tax-free everywhere.

See also​

References​

Footnotes​

  1. 金融庁 (Financial Services Agency). 「NISAを知る：NISA特設ウェブサイト」 (2024 system, verified 2026-09-07). https://www.fsa.go.jp/policy/nisa2/know/ ↩ ↩2 ↩3 ↩4 ↩5 ↩6 ↩7 ↩8 ↩9 ↩10 ↩11 ↩12 ↩13 ↩14 ↩15 ↩16 ↩17 ↩18 ↩19 ↩20 ↩21 ↩22 ↩23 ↩24 ↩25 ↩26 ↩27 ↩28 ↩29 ↩30 ↩31 ↩32 ↩33 ↩34 ↩35 ↩36 ↩37

  2. 国税庁 (National Tax Agency). 「No.1535 NISA制度」 (statutes as of 2025-04-01). https://www.nta.go.jp/taxes/shiraberu/taxanswer/shotoku/1535.htm ↩ ↩2 ↩3 ↩4 ↩5 ↩6 ↩7 ↩8 ↩9 ↩10 ↩11 ↩12 ↩13 ↩14 ↩15 ↩16 ↩17 ↩18 ↩19 ↩20 ↩21 ↩22 ↩23 ↩24 ↩25 ↩26 ↩27 ↩28 ↩29 ↩30 ↩31 ↩32

  3. 日本証券業協会 (Japan Securities Dealers Association). "NISA: Japan's Tax Exemption Scheme for Investment by Individuals" (English overview of 2024 system). https://www.jsda.or.jp/en/activities/research-studies/html/2024nisa.html ↩ ↩2 ↩3 ↩4

  4. 日本証券業協会 (Japan Securities Dealers Association). 「NISA制度が変わります！」 (2024 new-NISA leaflet, PDF). https://www.jsda.or.jp/nisa/assets/file/2024nisaleaflet.pdf ↩ ↩2 ↩3 ↩4 ↩5 ↩6 ↩7 ↩8 ↩9 ↩10

  5. RetireJapan. "NISA Accounts in Japan: A Beginner's Guide" (resident-focused publisher guide, accessed 2026-09-07). https://www.retirejapan.com/nisa/ ↩ ↩2 ↩3 ↩4 ↩5 ↩6 ↩7 ↩8 ↩9 ↩10

  6. 金融庁 (Financial Services Agency). 「つみたて投資枠対象商品」 (eligible-products portal, list updated 2026-08-31). https://www.fsa.go.jp/policy/nisa2/products/ ↩

  7. 国税庁 (National Tax Agency). 「No.1465 株式等の譲渡損失(赤字)の取扱い」 (statutes as of 2025-04-01). https://www.nta.go.jp/taxes/shiraberu/taxanswer/shotoku/1465.htm ↩ ↩2