NISA Changes 2026–2027: What Foreigners in Japan Get

Quick Answer: Japan's NISA is a tax-free investment account. The current "new NISA" (from 2024) lets residents invest up to ¥3.6 million a year, with a ¥18 million lifetime tax-free holding cap and no time limit on the tax break. A 2026 tax-reform package adds a NISA for under-18s (from January 2027), wider eligible products, and more flexibility. For foreigners, the catch is residency: NISA's tax-free status is tied to living in Japan, so leaving the country generally ends it.

NISA (少額投資非課税制度) is Japan's tax-free investment account — the country's main tool for moving households "from savings to investment." For foreign residents, it is often the simplest, most powerful tax break available.

It is also about to get broader. A 2026 tax-reform package expands who can use NISA and what they can hold. This guide explains, in plain English, what NISA looks like today, what is changing for 2026–2027, and the residency rule that matters most if you might not stay in Japan.

This is educational information, not financial, tax, or legal advice. NISA rules are set by law and administered through brokerages, and proposed changes can be revised before they take effect — confirm details against the official sources linked at the end or with a qualified professional.

What is NISA in one minute?

A NISA account holds investments — mainly investment trusts (index and mutual funds) and, in the growth portion, individual stocks and ETFs. Normally, investment gains in Japan are taxed at about 20.315%. Inside a NISA, those gains — dividends and capital gains — are tax-free.

Two features define the current system:

• It is generous. High annual limits and a large lifetime cap, with no expiry on the tax exemption.
• It is flexible. Unlike iDeCo, NISA money is not locked — you can sell and withdraw whenever you like.

That flexibility is exactly why NISA and iDeCo play different roles in a plan, which we'll come back to.

What does NISA look like today?

The "new NISA," in force since January 2024, has two quotas you can use at the same time:

On top of the annual limits there is a lifetime tax-free holding cap of ¥18,000,000 (the growth quota can fill up to ¥12,000,000 of that). The tax exemption has no time limit, and if you sell holdings, the lifetime cap frees back up and can be reused in a later year.

To open a NISA today you must be a resident of Japan aged 18 or over with a My Number. Each person may hold one NISA account at a time.

What is changing in 2026–2027?

The fiscal-2026 tax-reform package, led by Japan's Financial Services Agency (FSA), proposes several expansions. The headline measures are scheduled to take effect January 2027 and remain subject to final legislation.

1. A NISA for under-18s. The accumulation (tsumitate) quota would open to children from age 0 to 17 — currently NISA is for ages 18+. The reported parameters are an annual limit of ¥600,000 and a ¥6,000,000 lifetime tax-exemption cap for the minor's account. Because the money would in practice come from parents or grandparents, the cap is designed to limit disparities when the assets are eventually withdrawn.

2. More eligible products. The accumulation quota — today limited mainly to equity-focused funds — would be widened to include fixed-income/bond products and a broader range of index products, giving more conservative or diversified options.

3. More flexibility. The reform allows providers to offer scheduled/periodic sell-down services (a managed drawdown feature), among other operational refinements.

These are expansions, not cuts — the existing adult limits above are not being reduced.

Can foreigners use NISA?

Yes. Foreign residents of Japan who are tax residents and have a My Number can generally open and use a NISA, the same as Japanese nationals. For many foreigners on a medium-to-long-term stay, it is the most accessible tax-free investing route available.

The new under-18 NISA is also relevant to international families raising children in Japan, since it extends tax-free investing to a child's account from infancy.

The important qualifier is residency — which leads to the question every foreigner should ask before opening one.

What happens to your NISA if you leave Japan?

This is the part most guides gloss over, and it is the mirror image of the iDeCo problem.

NISA's tax-free status is tied to Japanese tax residency. If you leave Japan permanently and become a non-resident:

• You can no longer contribute to the NISA.
• The account is typically closed or converted to a taxable account, and you may be required to sell your holdings before you depart.
• Gains you realised while you were a resident were tax-free, but once you are a non-resident the NISA tax shelter no longer applies.

Exact handling varies by brokerage, and procedures can change, so confirm with your specific provider well before you leave — being forced to sell at a bad time is a real risk worth planning around.

This is the key contrast with iDeCo: an iDeCo balance generally stays locked in Japan until your 60s even after you leave, whereas a NISA generally has to be unwound when you go. One traps the money in; the other pushes it out. If a future move abroad is on the table, both belong in the plan. Our companion guide, iDeCo Changes in 2027 for Foreigners, covers the locked-account side, and FIRE in Japan: NISA, currency, and retirement planning shows how both fit a household plan.

NISA or iDeCo — which comes first?

They are not either/or, and they solve different problems:

• NISA is flexible and accessible. It suits money you might need before retirement, and it is easier to unwind if you leave Japan. The trade-off: no upfront income-tax deduction on contributions.
• iDeCo gives a bigger upfront tax deduction but locks the money until your 60s and is hard to access early if you leave.

A common sequence for foreign residents is to use NISA first for flexible, tax-free investing, then add iDeCo once your stay in Japan is stable and your tax rate makes the deduction worthwhile. For households planning across two countries, see expat FIRE and two-country retirement planning.

How PlanTogetherFI helps

NISA is one tax-free, yen-denominated layer of a bigger picture — and for foreigners, one that may not survive a move abroad. PlanTogetherFI is built to model that honestly for couples and cross-border households:

• Treat assets by accessibility — flexible NISA money, locked iDeCo, and taxable savings are not the same, and your plan shouldn't pretend they are.
• Multi-currency modelling — see your plan in your home or spending currency, not just yen.
• Per-partner and staggered retirement — two people, two timelines, two account setups, in one household projection.

Try the free PlanTogetherFI calculator to see where NISA fits your FI timeline. To start from your take-home pay, the Japan Salary Tax Calculator estimates your net income and monthly investing capacity first.

PlanTogetherFI is for educational planning only. It is not financial, tax, legal, or investment advice. NISA rules are governed by Japanese law and administered by brokerages, and proposed changes can be revised before they take effect — confirm details with the official sources below or a qualified professional.

Frequently Asked Questions

What are the current NISA limits?

Since January 2024, you can invest up to ¥1.2 million a year in the accumulation (tsumitate) quota and ¥2.4 million in the growth quota — ¥3.6 million combined — with a ¥18 million lifetime tax-free holding cap (the growth quota can fill up to ¥12 million of it). The tax exemption has no time limit, and selling holdings frees the lifetime cap back up for reuse.

What is changing about NISA in 2027?

The fiscal-2026 tax-reform package proposes opening the accumulation quota to under-18s (annual limit ¥600,000, ¥6 million lifetime tax-exemption cap), widening eligible products to include bonds and a broader range of index funds, and allowing scheduled sell-down services. These measures are scheduled for January 2027 and remain subject to final legislation.

Can foreigners open a NISA in Japan?

Generally yes. Foreign residents who are tax residents of Japan and have a My Number can usually open and use a NISA on the same terms as Japanese nationals. It is often the most accessible tax-free investing option for medium-to-long-term residents.

What happens to my NISA if I leave Japan?

Because NISA is tied to Japanese tax residency, leaving permanently generally means you can no longer contribute, and the account is typically closed or converted to a taxable account — you may need to sell your holdings before departure. Handling varies by brokerage, so confirm with your provider well ahead of any move.

Should I use NISA or iDeCo first?

They serve different purposes. NISA is flexible and accessible and easier to exit if you leave Japan, but gives no upfront deduction. iDeCo offers a larger upfront tax deduction but locks the money until your 60s. Many residents use NISA first and add iDeCo once their situation in Japan is stable.

Sources and further reading

• Financial Services Agency (FSA) — NISA program (the regulator's official information): https://www.fsa.go.jp/policy/nisa2/index.html
• Japan Securities Dealers Association (JSDA) — NISA overview in English: https://www.jsda.or.jp/en/activities/research-studies/html/2024nisa.html
• The Japan Times — "NISA program for minors to have ¥6 million tax-exemption cap" (Dec 10, 2025): https://www.japantimes.co.jp/business/2025/12/10/nisa-tax-free-cap-minors/
• EY Japan — 2026 Japan tax reform outline (overview): https://www.ey.com/en_jp/technical/ey-japan-tax-library/tax-alerts/2025/tax-alerts-12-24

Figures and effective dates reflect the fiscal-2026 tax-reform package as reported in late 2025 and mid-2026 and may be refined before implementation. Always confirm your own limits and your brokerage's rules against the official sources or a qualified tax professional.