Nippon Individual Savings Account (NISA): Who Qualifies and What You Get
Learn how the NISA scheme allows residents of Japan to invest with tax-free benefits on capital gains and dividends.
The Nippon Individual Savings Account (NISA) is a tax-advantaged investment scheme designed to help individuals grow their wealth through tax-free returns.
Who it's for
This scheme is available to residents of Japan who are aged 18 and older.
What you get
You can invest within a lifetime limit of ¥18 million. Any capital gains or dividends earned from your investments within this limit are exempt from tax.
What it costs you
There is no application fee to use this scheme. However, you must open a brokerage account to participate, and you will be subject to standard trading commissions when you buy or sell investments.
The catch to know
While you have a large lifetime limit, there is a yearly cap on how much you can invest. There is a maximum annual investment limit of ¥3.6 million, and if you do not use your full allowance in a given year, you cannot carry the remaining amount over to the next year.
How to apply
- Open an account with a financial brokerage.
- Select the NISA option during your application process.
- Choose your investment types and set your contribution amounts.
- Check the official portal for specific details: https://www.fsa.go.jp/policy/nisa/