Money · Investing in Japan
Investing in Japan
Japan has one of the world's largest economies, a stock market with more than 3,000 companies, and tax-free accounts built to encourage saving. These guides explain how people invest in Japan, whether they live abroad or in Japan, and what to watch out for.
Where do you start?
What you can do depends mostly on where you live. Pick the path that fits you.
Investing from abroad
I live outside Japan
You invest through funds, American depositary receipts (ADRs) or an international broker that offers Tokyo.
Living in Japan
I live in Japan
You can open a Japanese brokerage account and use the tax-free NISA and the iDeCo retirement account.
The guides
- How the Japanese stock market works The Tokyo Stock Exchange, the Nikkei 225 and TOPIX, trading hours, 100-share units and the 1989 peak. Everyone
- Japan ETFs and funds Index ETFs, mutual funds and J-REITs, and what hedged and unhedged means for the yen. Everyone
- Buying Japanese stocks from abroad ADRs, international brokers and Tokyo shares, the 15.315% dividend tax and shareholder perks. Investing from abroad
- Opening a brokerage account in Japan What residents need, the tokutei account that handles your tax, and how to choose a broker. Living in Japan
- NISA: the tax-free investment account How the new NISA works, the ¥3.6 million yearly and ¥18 million lifetime limits, and what to know before opening one. Living in Japan
- iDeCo: the retirement account Tax relief on contributions, why the money is locked until 60, and the limit increase in December 2026. Living in Japan
- Risks and common mistakes The 34-year wait after 1989, the yen, fees, scams, and the tax traps for foreign residents and US citizens. Everyone
Learn Japanese
Learn the Japanese behind the forms and broker sites
Readers, books and study bundles from The Japan Shop.
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Complete Beginner Bundle
Hiragana, katakana and a first kanji book, for starting Japanese from zero.
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JLPT N5 Digital Bundle
The first 103 kanji, with grammar, vocabulary and reading for the JLPT N5.
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Beginning Japanese Phrases and Stories
Everyday phrases and short stories for beginners (JLPT N5 level).
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Further reading
Books to read next
General books on investing and on the Japanese market. They are reading suggestions, not investment advice, and we do not endorse any investment.
- The Little Book of Common Sense Investing John C. Bogle The case for low-cost index funds, by the founder of Vanguard. See on Amazon ↗
- The Bubble Economy Christopher Wood An account of the Japanese boom of the 1980s and the bust that followed. See on Amazon ↗
- Kakeibo: The Japanese Art of Saving Money A guide to the Japanese household account book and mindful spending. See on Amazon ↗
Sponsored links. As an Amazon Associate I earn from qualifying purchases.
Terms you will meet
- 東証 tōshō
- The Tokyo Stock Exchange, Japan's main stock market.
- 日経平均 nikkei heikin
- The Nikkei 225, an index of 225 large companies, the figure quoted in the news.
- 東証株価指数 TOPIX
- A broader index weighted by company size, often used by funds.
- 投資信託 tōshi shintaku
- A mutual fund. The usual way Japanese households invest.
- 新NISA shin-NISA
- The tax-free investment account for residents of Japan, in its current form since 2024.
- iDeCo iDeCo
- The individual retirement account, with tax relief but locked until age 60.
- 特定口座 tokutei kōza
- A brokerage account where the broker works out and withholds the tax for you.
- 株主優待 kabunushi yūtai
- Perks, such as products or vouchers, that some companies give shareholders.
Related on e2japan
Common questions
Can foreigners invest in Japanese stocks?
Yes. From abroad, you can buy Japan funds, American depositary receipts (ADRs) of Japanese companies, or shares in Tokyo through an international broker that offers it. If you live in Japan, you can open a Japanese brokerage account.
Do I need to live in Japan to use NISA?
Yes. A NISA account is only for people aged 18 or over who are residents of Japan on 1 January of the year they open it. Foreign residents can use it too, with a residence card and My Number.
How much does it cost to buy a Japanese stock?
Japanese shares are traded in units of 100, so the minimum is usually 100 times the share price. Some brokers also sell single shares or fractions of a share at a small extra cost.
Are profits from Japanese investments taxed?
For residents of Japan, gains and dividends in a normal account are taxed at 20.315%, and not at all inside a NISA. Japan generally does not tax capital gains of small non-resident investors, but it withholds tax on dividends, and your home country may tax both.
Is this financial advice?
No. These pages explain how things work. They do not tell you what to buy, and you should speak to a licensed adviser about your own situation.