Japan Stock Investing for Foreigners — Complete Guide

⚡ 30-second answer: Buy Japanese stocks, US stocks, and mutual funds via Rakuten Securities, SBI Securities, or Monex. Residents can use NISA (¥3.6M/year tax-free), iDeCo, and the specified account. Capital gains and dividends are taxed at 20.315% (separate), and foreigners can open accounts with a residence card and My Number.

Quick Reference	Value
Capital gains / dividend tax	20.315% (separate)
NISA annual limit	Growth ¥2.4M + Tsumitate ¥1.2M = ¥3.6M
iDeCo monthly limit	¥12,000-68,000
Trading fees	Japanese stocks ¥0-1,000
Last verified	June 2026

30-Second Answer

Foreign residents with a residence card and My Number can open accounts at online brokers like Rakuten Securities, SBI Securities, and Monex. You can buy Japanese stocks, US stocks (NYSE/NASDAQ), mutual funds, ETFs, REITs, and bonds. Capital gains and dividends are taxed at a flat 20.315% (income 15% + resident 5% + reconstruction 0.315%) — far lower than crypto. NISA (¥3.6M/year, ¥18M lifetime, tax-free) is available to any resident regardless of nationality, split between the Tsumitate (¥1.2M) and Growth (¥2.4M) frames. iDeCo locks funds until age 60 but offers powerful income deductions. The "specified account (with withholding)" eliminates the need to file — a convenient setup for foreigners.

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💰 Tax & Fee Schedule

Main costs:

• Capital gains tax: 20.315% (auto-withheld in specified account)
• Dividend tax: 20.315% (tax-free inside NISA)
• US dividend withholding: 10% (recoverable via filing under tax treaty)
• NISA Growth frame: ¥2.4M/year tax-free
• NISA Tsumitate frame: ¥1.2M/year tax-free
• iDeCo monthly: ¥12,000-68,000 (depending on profession)
• Japanese stock fees: ¥0-1,100 (online brokers trending to free)
• US stock fees: 0.495% (cap $22)
• USD/JPY FX fee: 0.25 yen/USD (0.06 yen via Sumishin SBI)
• Fund expense ratios: 0.05-2.0%/year
• ETF expense ratios: 0.1-0.5%/year
• NISA losses: Cannot be offset against other accounts
• Loss carry-forward: 3 years in specified/general accounts
• Dividend tax credit: Only when choosing aggregate taxation

Rakuten and SBI have effectively zeroed out Japanese stock fees; US stocks come close to net-zero after point rebates.

🌐 Account Opening Requirements for Foreign Residents

• Residence card: For mid-to-long-term residents (visa over 3 months)
• My Number: Notification card or My Number Card required
• ID: Passport + residence card
• Japanese bank account: For deposits/withdrawals
• Resident registration: Linked to My Number registration
• US citizens: Additional FATCA paperwork (W-9, etc.)
• Non-residents: Accounts closed upon departure or switched to non-resident status
• Dividend payouts: JPY transfer or USD-denominated
• English support: Limited at SBI/Rakuten; Monex's UI is partly English
• Phone support: Japanese only at most brokers

⏰ Account Opening Flow

• STEP 1: Apply online at the broker (Rakuten / SBI / Monex)
• STEP 2: Upload ID (residence card + My Number)
• STEP 3: Choose NISA / iDeCo
• STEP 4: Select specified account (with withholding) — recommended
• STEP 5: Register your Japanese bank account
• STEP 6: Account opens in 1-2 weeks
• STEP 7: Deposit funds and start investing
• STEP 8: Dividends and gains are auto-settled via withholding

💳 Deposits, Withdrawals & Transfers

• Domestic bank transfer: Instant deposits (Rakuten Bank / Sumishin SBI)
• Convenience store deposits: Limited
• International wire: Wise / Revolut → Japanese bank → broker
• US stock purchases: JPY → USD FX (0.06-0.25 yen/USD)
• USD dividends: Hold in foreign currency
• Withdrawals: Japanese bank accounts only (overseas banks not allowed)
• ATMs: Not directly relevant (brokers run on transfers)
• Credit card auto-invest: Rakuten Card / SBI Mitsui Sumitomo Card for fund auto-investment (¥50,000-100,000/month)
• Points investing: Available at Rakuten/SBI/Monex

⚠️ Things to Watch Out For

• No NISA loss offset: Losses inside NISA cannot offset other accounts
• US withholding: 10% on US dividends; file to apply tax treaty
• Double taxation: Recoverable via filing, except for NISA
• On departure: Submit notification; confirm if specified account can be retained
• Specified account (with withholding): No filing required, but file when you want to carry losses
• Loss carry-forward: 3 years, requires filing
• Dividend tax credit: Possible under aggregate taxation; compare rates first
• IPOs / pre-IPO: Open an account with the lead underwriter

5 Common Tourist/Foreigner Mistakes

1. Trying to open on a tourist visa: Mid-to-long-term residency status is required
2. Misunderstanding NISA loss rules: Losses inside NISA can't be offset elsewhere
3. Leaving 10% US withholding alone: Recover it via tax filing
4. Ignoring FX fees: Compress to 0.06 yen/USD via Sumishin SBI
5. Forgetting iDeCo lock-up: Funds locked until age 60 — watch liquidity

Pre-Setup Checklist

• Prepare residence card + My Number
• Open a Japanese bank account
• Choose Rakuten / SBI / Monex
• Select specified account (with withholding) + NISA
• Wire initial funds via Wise / Revolut
• Pick 1-3 funds for Tsumitate NISA
• If buying US stocks, review tax treaty and file W-8BEN
• Confirm iDeCo monthly limit (varies by occupation)
• Understand the loss carry-forward rules
• Confirm account treatment upon departure

FAQ

Q1: Can I open an account on a tourist visa? A: No. You need mid-to-long-term residency status (visa over 3 months) plus residence card.

Q2: Can foreigners use NISA? A: Yes — any resident regardless of nationality. ¥3.6M/year, ¥18M lifetime.

Q3: What's the capital gains tax rate? A: 20.315% (no filing in a specified account with withholding).

Q4: How does US dividend double taxation work? A: 10% US withholding + 20.315% Japan; some US portion is recoverable through filing (except for NISA).

Q5: What happens when I leave Japan? A: You become non-resident, NISA terminates, and specified accounts may continue under conditions.

Editorial: Yen Finder Editorial / Last verified June 2026. This article is general guidance — confirm specifics with your broker or tax professional.