What are the requirements for opening a NISA account?

Alright, let's break down the conditions for opening a NISA (Nippon Individual Savings Account) in Japan. The process isn't complicated; it's easier to understand if you think of it as a "tax-free investment gift package" from the government.

Want to Open a NISA Account? Just Meet These 3 Basic Conditions!

Simply put, as long as you meet the following points, you can apply to open an account.

1. Age Requirement: Must Be an Adult

• 18 years or older: Starting from 2023, the age of majority in Japan was lowered to 18. So, as long as you are 18 years old by January 1st of the year you apply, you are eligible.
• For example: If you want to open an account in 2024, you must have already turned 18 by January 1st, 2024.

2. Residency Requirement: Must Reside in Japan

• Possess a Japanese domestic address: You must be a tax resident of Japan, meaning you have a fixed address in Japan and have registered your "Juminhyo" (Certificate of Residence).
• Students or Workers are Fine: As long as you legally reside in Japan, whether for work or study, and possess a "Zairyu Card" (Residence Card) and "Juminhyo", you meet this condition. Temporarily returning to your home country or going on a short business trip abroad is fine, but if you permanently leave Japan, you will no longer be eligible.

3. Account Uniqueness: One Person, One Account

• "One Person, One Account" Principle: This is a very important rule. You cannot open NISA accounts at both Bank A and Securities Firm B simultaneously. You can only choose one financial institution (bank, securities firm, etc.) to open your account.
• You can change financial institutions: If you are dissatisfied with your current institution, for example, due to high fees or a poor app, you can apply to change once per year. However, the procedure can be a bit troublesome, so it's easier to choose a preferred institution from the start.

To Summarize, What Do You Need to Prepare?

Once you've confirmed you meet the above conditions, you can start preparing to open your account. Generally, you'll need:

1. Choose a financial institution:
   • Online Securities Firms: Such as Rakuten Securities (楽天証券), SBI Securities, etc. Their advantages include low fees, a wide selection of products, and convenient app operations, making them the top choice for most people.
   • Traditional Banks: Such as Mitsubishi UFJ, Sumitomo Mitsui, etc. The advantage here is that if you already have an account with them, you can directly consult and apply at the counter, which might feel more reassuring.
2. Prepare personal documents:
   • My Number Card (Individual Number Card): This is mandatory. If you don't have the card, a combination of your "My Number Notification Card" + "identification document (e.g., driver's license, Zairyu Card)" can also be used.
   • Identification documents: Zairyu Card, driver's license, health insurance card, etc.
   • Bank account: A bank account to be linked for investment deductions.

That's basically it! The entire process isn't complicated, and many online securities firms allow you to complete the application online, which is very convenient. NISA is an excellent financial management tool, especially with the "New NISA" system starting from 2024, which offers higher limits and more flexibility. It's highly recommended to utilize it if you reside in Japan.