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From January 1, 2027, children aged 0 to 17 in Japan can have a NISA account. People often call it “kodomo NISA” or the new “junior NISA.” It allows up to ¥600,000 a year and ¥6 million in total, using the tsumitate investment quota only. The law has already passed. What is still unclear is when brokers will start taking applications. This guide explains the rules as of October 2026.
Key facts (as of October 2026)
- Status: Decided. The law was promulgated on March 31, 2026, and applies from January 1, 2027. (NTA)
- Who: Children aged 0 to 17 who are residents of Japan. The rules list no nationality requirement for NISA. (FSA)
- Limits: ¥600,000 a year and ¥6 million in total, tsumitate quota only. (MOF)
- Withdrawals: From age 12, only for the child’s education or living costs, with the child’s written consent.
- Not yet known: The date brokers start opening accounts.
What is decided, and what is still open?
The core rules are law now. Some details, like the account-opening date, have not been announced. Keep the two apart when you read news or broker ads.
The government’s tax reform outline for 2026 was approved by the Cabinet on December 26, 2025. (MOF) The amending law (Act No. 12 of 2026) was promulgated on March 31, 2026. It applies from January 1, 2027. (NTA)
| Item | Status as of October 2026 |
|---|---|
| Ages 0 to 17 can use the tsumitate quota | Decided (law) |
| ¥600,000 a year, ¥6 million in total | Decided (law) |
| Automatic move to adult NISA at 18 | Decided (law) |
| Withdrawal rules from age 12 | Decided (law) |
| When brokers start taking applications | Not announced |
| Which brokers will offer it | Not announced |
| FSA’s 2027 tax reform request on adult NISA limits | A request only, not decided |
The last row is easy to misread. In August 2026, the Financial Services Agency (FSA) asked for sold quota to come back within the same year. Today it comes back from the next year. This is only a request in the 2027 tax reform process. (FSA)
How does children’s NISA work?
Children’s NISA is not a separate product. It is a NISA account with only the tsumitate quota open until the child turns 18. The law calls it the “minor tsumitate investment quota” (未成年つみたて投資枠). “Kodomo NISA” is a common nickname, not the legal name.
The main rules are:
- Ages: Children aged 0 to 17 can open a NISA account with a tsumitate quota. The growth investment quota stays 18 and over. (NTA)
- Limits: ¥600,000 a year and a lifetime tax-free limit of ¥6 million while the child is 0 to 17. That is ¥50,000 a month if you spread it evenly. (MOF)
- Products: The same investment trusts as the adult tsumitate quota. They suit long-term, diversified investing, and you buy them on a regular plan. (MOF)
- Tax-free period: No time limit, the same as adult NISA. (FSA)
- At 18: The account moves to the adult tsumitate quota automatically. No paperwork is needed. (MOF)
Outside NISA, gains and dividends on stocks and funds are taxed at about 20%. Inside NISA, they are tax-free. (FSA)
How is it different from the earlier Junior NISA?
The earlier Junior NISA program had a fixed tax-free period and a rollover system. The new children’s quota has no time limit. (FSA) So “junior NISA 2027” in search results usually means this new quota, not the old program.
Adult NISA vs. children’s NISA
The children’s version is a smaller, stricter form of the adult tsumitate quota. The table puts them side by side.
| Adult NISA | Children’s NISA | |
|---|---|---|
| Age | 18 and over (as of January 1 of the year) | 0 to 17 |
| Quotas | Tsumitate and growth | Tsumitate only |
| Annual limit | ¥1.2 million tsumitate + ¥2.4 million growth = ¥3.6 million | ¥600,000 |
| Lifetime tax-free limit | ¥18 million (growth up to ¥12 million) | ¥6 million |
| Tax-free period | No limit | No limit |
| Products | Tsumitate: certain investment trusts. Growth: listed stocks, funds, and more | Same as adult tsumitate |
| Taking money out | Selling frees quota from the next year | Limited until 18 (see below) |
| Residency | Resident of Japan | Resident of Japan |
| Available from | Now | January 1, 2027 |
Sources: FSA, FSA Q&A, MOF, NTA.
For more on the adult account, see NISA for Foreigners in Japan.
When can you take money out?
Not freely. Before 18, the money is locked except in a few cases. Plan to leave it invested for years.
From the year the child is 12 on March 31, withdrawals become possible. The money must pay for the child’s education or living costs. (NTA)
The process has two parts:
- The child agrees in writing. The document shows the money is for the child and the child consents.
- A parent applies. The parent or guardian managing the account sends an application to the financial institution. (MOF)
Before that age, only two cases allow a withdrawal. One is a disaster or similar unavoidable event, confirmed by the tax office. The other is when a fund’s shares are delisted. (NTA)
The limits end on December 31 of the year before the year the child is 18 on March 31. Until then, dividends and sale money stay in a linked account at the same institution. (NTA)
Can foreign parents use children’s NISA?
Residency is what counts, not nationality. The children’s quota is for residents aged 0 to 17, the same residency rule as adult NISA. (NTA) The FSA’s NISA rules list no nationality requirement. (FSA)
Under income tax law, a resident is someone with an address in Japan, or who has lived here for one year or more. (NTA)
Some points are not yet clear. Official sources do not yet say how brokers will handle a foreign parent opening an account for a resident child. Brokers have not published their document lists either. Wait for your broker’s official guide.
Opening a brokerage account itself can be harder for foreign nationals. As of October 2026, several large brokers accept foreign nationals by mail only. (SBI Securities, Monex) We compare brokers in Best NISA Accounts for Foreigners.
What happens if your family leaves Japan?
For children, the rules are not yet clear. Official materials we checked do not explain what happens to a child’s account when the family moves abroad.
For adult NISA, one rule is confirmed. If you leave Japan for a job transfer or similar unavoidable reason, you can file a “continuation form” (継続適用届出書) first. Your holdings then stay tax-free for a set period, but you cannot buy more abroad. (FSA Q&A)
To restart buying, file a “return form” (帰国届出書) with the same institution. The deadline is December 31 of the year that ends 5 years after the continuation form. (e-Gov) If you leave without the continuation form, the law treats your account as closed when you depart. (e-Gov) Not every institution handles the continuation form. (FSA Q&A)
If you may leave Japan before your child turns 18, keep this open question in mind. Tax results of leaving Japan depend on your case, so ask a tax professional.
What are the risks?
The tsumitate products are investment trusts. Their value goes up and down, and the principal is not guaranteed. You can get back less than you put in.
Other limits to keep in mind:
- Locked money. Before age 12, you generally cannot withdraw. After 12, only for the child’s education or living costs.
- No loss offset. Losses in a NISA account cannot be offset against gains in other accounts or carried forward. (FSA)
- Costs. Investment trusts charge ongoing fees (trust fees). Check them in each fund’s documents before you buy.
This guide explains how the system works. It does not recommend any fund or broker.
How to prepare now
Accounts are not open yet, but you can get ready. None of these steps commit you to investing.
- Check your residence card and address. The children’s quota is for residents of Japan. Make sure your records are up to date.
- Open a Japanese bank account if you don’t have one. See How to Open a Bank Account in Japan.
- Decide where your own NISA is. A NISA account is one per person, and both quotas sit at one institution. (FSA, FSA Q&A) It may be simpler if your child’s account is at a broker you already use.
- Watch your broker’s announcements. Start dates and required documents have not been published as of October 2026.
- Set a monthly amount you can keep up. The limit is ¥600,000 a year, but you don’t have to use all of it.
FAQ
Is kodomo NISA the same as Junior NISA?
No. Kodomo NISA is a nickname for the new minor tsumitate investment quota from January 1, 2027. Unlike the earlier Junior NISA program, it has no tax-free time limit. (FSA)
When can I open a children’s NISA account?
The rules apply from January 1, 2027. When brokers start taking applications has not been announced as of October 2026. Check your broker’s news page.
How much can I invest for my child?
Up to ¥600,000 a year and ¥6 million in total while the child is 0 to 17. Only the tsumitate quota is open. (MOF)
Can a foreign family use children’s NISA?
The rule is residency in Japan, and NISA rules list no nationality requirement. (FSA) How brokers will handle foreign parents is not yet published.
What happens when my child turns 18?
The account moves to the adult tsumitate quota automatically, with a lifetime limit of ¥18 million. No paperwork is needed. The growth quota also becomes available from 18. (MOF)
Can I use the money for my child’s school fees?
From the year the child is 12 on March 31, yes, for education or living costs. You need the child’s written consent and a parent’s application. (NTA)
This article is general information, not financial, investment, or tax advice. Information is as of October 5, 2026. Investment trusts do not guarantee your principal. Rules and broker services can change, so check official sources before you act. Sources: NTA outline of the 2026 tax reform, MOF, FSA NISA site, FSA NISA Q&A.