Market guide
Investing in Japan
After three decades in deep freeze, the Nikkei printed new all-time highs in 2024–25. Corporate-governance reform, share buybacks, and a weak yen reshaped the case for owning Japan.
01 — Market overview
The shape of the market
Exchanges
- Tokyo Stock Exchange (TSE)
Headline indices
- Nikkei 225
- TOPIX
- JPX-Nikkei 400
Top sectors
- Industrials
- Consumer discretionary (autos)
- Information technology
Currency
- JPY
Regulator
- FSA (Financial Services Agency); SESC for surveillance
Market capitalization
- ~$7T (TSE, end-2025) — multi-decade high
02 — Ways to invest
What you can actually buy
A non-exhaustive inventory of instruments available in this market — stocks, ETFs, ADRs, REITs, bonds — with notes on access.
- Stocks
- TSE Prime / Standard / Growth segments open to foreign retail via international brokers.
- ETFs
- Deep ETF market — iShares MSCI Japan (EWJ US), 1306.T (TOPIX), 1321.T (Nikkei 225).
- Mutual funds
- Sizeable domestic MF industry; foreign retail mostly uses ETFs.
- ADRs / DRs
- Major Japanese ADRs in the US (Toyota TM, Sony SONY, Mitsubishi UFJ MUFG, NTT, etc.).
- REITs
- J-REITs are Asia's largest REIT market (~$130B), 50+ listed REITs.
- Bonds
- JGBs accessible via international brokers; corporate bonds harder for retail.
03 — Access & brokers
How a foreign retail investor gets in
Brokers that serve non-residents
- Interactive Brokers
- Saxo Bank
- Monex / SBI (Japan-domestic)
Choosing a platform? Compare Vested, INDmoney, IBKR & Rovia →
KYC & onboarding
Passport + tax-residency declaration; no My Number needed for non-residents.
Notable restrictions
Limited overall — some smaller TSE Growth names are not routed through every foreign broker.
04 — Tax & regulatory
What gets taxed, by whom
Headline tax treatment for foreign retail investors. Specific situations — large holdings, real-estate-rich entities, treaty residency — can diverge. Always confirm with a qualified advisor.
Capital gains
Residents: 20.315% flat on listed-share gains. Non-residents: generally exempt on listed-share CG (if <25% holding).
Dividend withholding
15.315% on listed-share dividends for non-residents (20.42% otherwise).
India DTAA
Yes — 10% on dividends under the India–Japan DTAA.
05 — For Indian residents
The India-specific angle
What changes when you're investing from India — LRS eligibility, Indian feeder-fund options, and the tax / reporting gotchas you should know upfront.
Eligible under the Liberalised Remittance Scheme
Indian residents can remit up to $250,000 per FY to invest here, subject to 20% TCS above the threshold.
Indian feeder options
Nippon India Japan Equity Fund, Edelweiss MSCI Japan ETF FoF (subject to intermittent inflow caps).
Caveat / pitfall
Yen exposure is a real factor — JPY has been historically volatile vs INR. Schedule FA disclosure mandatory.
06 — Drill down
Pillar guides on Japan
Four deep-dives we're writing on how to actually execute in Japan. Each becomes a full article at /japan/[slug].
Best Japan ETFs for Indian investors
Read/japan/japan-etfs-for-indians
Investing in Toyota, Sony, Nintendo from India
Read/japan/japanese-blue-chips-from-india
JPY / INR — currency risk in Japan investing
Read/japan/yen-rupee-currency-risk
Japan dividend withholding and DTAA claim
Read/japan/japan-dividend-withholding-dtaa
07 — Tools
Related calculators
Free Vested calculators relevant when you're investing in Japan.
- LRS & TCS calculator →Compute the 20% TCS on LRS remittances above Rs 10 lakh and how much actually lands at your broker.
- US capital gains calculator (INR) →STCG vs LTCG, the 24-month rule, and Indian tax on US stock sales with currency conversion.
- Form 67 / FTC calculator →Compute foreign tax credit available on US dividends and net Indian tax owed.
- Schedule FA helper →Compute initial value, peak value, and closing balance in INR for foreign-asset disclosure.
- Currency hedge sizing calculator →How much of your long-term portfolio should be in USD assets, based on USD-flavored expenses.
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