US citizens and NISA

[RetireJapan]

What restrictions are there on US citizens investing in a NISA account? I am struggling to understand the Rakuten page on this: https://www.rakuten-sec.co.jp/web/domes ... ution.html

[gerdemb]

I believe the basic restriction is that “US Persons” are prevented from purchasing any US based investments such ETFs or stocks domiciles in the US.

[RetireJapan]

Thank you. I guess that's what it says (and have confirmed by looking here: https://www.bogleheads.org/wiki/Investing_in_Japan)

This seems really limiting for US citizens. So basically they can't buy US-listed stocks or ETFs and shouldn't buy foreign-listed mutual funds or ETFs.

So they can basically buy Japanese individual stocks in NISA, and pay US taxes as normal one them???

[RetireJapan]

Are there any US citizens using a NISA account? What are you doing with it?

[gerdemb]

Mutual funds are basically off limits for US citizens due to punitive PFIC tax rules. That leaves Japanese stocks and ETFs as the only real viable options.

[RetireJapan]

I think Japanese ETFs are also PFICs...

[RetireJapan]

Also it seems as though SMBC may allow US citizens to buy US stocks/ETFs? Or at least the JDRs?

https://www.bogleheads.org/wiki/Investing_in_Japan

[Dan]

The info on the Bogleheads Japan page about specific funds may be dated.

[RetireJapan]

So basically NISA is a bust as well for US taxpayers? Ooof.

I should not be this frustrated with the tax system of a country I neither live in nor have any connection with...

[DragonAsh]

Just a data point here, SBI will not let me (US citizen) purchase foreign stocks or mutual funds.
They do allow me to purchase Japanese stocks and ETFs, including in my NISA account.