Hello,
I am a French self-employed in Kanto and after 2 years of business survival, I am finally cash-flow positive (profits was never the issue...).
Next year, as business picks up, I am aiming to invest from 100万円 to 300万円.
I am 31 and have not decided yet if I will be staying here another 2 years, 10 years or 40 years. So I don't see myself starting in IdeCo account at the moment.
From the info I got on Retire Japan about Japan investing instruments, my feeling is I should start with saving the first 120万円 in a NISA, and everything above that in a standard stocks account.
2 questions though about this:
From what I understood, when investing in a NISA, what happens is I open a 4 years account every year and deposit 120万円 over a year into it. What happens when the NISA tax-free period end? Is it merged into my standard investment account?
Completely different topic, is there regulations to send money back to France so I can build a nest there in case I ever move back? My research tells me that as long as I am open about the money and capital gains or other I am making in foreign countries (and paying proper taxes on it), there is no custom tax from moving the money itself.
gettting started with savings
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Re: gettting started with savings
Hi seb
Welcome to the forum!
1. when your NISA tax-free period ends, you have three choices: sell the investments, move the investments into a new NISA year (this may not be possible if the NISA system is not extended), or move the investments into your regular investing account (the price will be reset so any gains so far will be tax free).
2. I am not aware of any restrictions on sending money back (and this would not be taxable). You may have trouble opening new accounts in France as a non-resident (this is almost impossible in the UK) and you should declare any profits or dividends to the Japanese tax office. However, if you invest in funds that do not pay a dividend, and don't sell them, you would not be receiving a profit or a dividend and would not need to declare or pay any tax.
Anyone else?
Welcome to the forum!
1. when your NISA tax-free period ends, you have three choices: sell the investments, move the investments into a new NISA year (this may not be possible if the NISA system is not extended), or move the investments into your regular investing account (the price will be reset so any gains so far will be tax free).
2. I am not aware of any restrictions on sending money back (and this would not be taxable). You may have trouble opening new accounts in France as a non-resident (this is almost impossible in the UK) and you should declare any profits or dividends to the Japanese tax office. However, if you invest in funds that do not pay a dividend, and don't sell them, you would not be receiving a profit or a dividend and would not need to declare or pay any tax.
Anyone else?
English teacher and writer. RetireJapan founder. Avid reader.
eMaxis Slim Shady
eMaxis Slim Shady
Re: gettting started with savings
Hello Ben,
Thank you for your answers. It really helps with clarity for me.
I am getting set up on Rakuten Securities now to be ready to use by next year now. I also started reviewing all my regular bills and switching a bunch of them to Rakuten as well as they are cheaper than my current plans and the point cashbacks seem to accumulate nicely (I already have the credit card there too).
Thank you for your answers. It really helps with clarity for me.
I am getting set up on Rakuten Securities now to be ready to use by next year now. I also started reviewing all my regular bills and switching a bunch of them to Rakuten as well as they are cheaper than my current plans and the point cashbacks seem to accumulate nicely (I already have the credit card there too).
Re: gettting started with savings
How is the tax rate in France for capital gains and dividends? Also, is there a double tax avoidance treaty between Japan and France which covers these? You might want to consider these aspects before moving your money back.
Re: gettting started with savings
Hello Kizuki,
I downloaded the French version of the bilateral tax treaty. But it's a hard read, and I need to learn a few more basics on what exactly counts as capital gains for example to understand what is taxable where... I am leaving for later reading, as I don't think I can start I will start sending money to France for another year. I have enough to learn with local investing already. I might actually consult with a specialist when the time comes.
I downloaded the French version of the bilateral tax treaty. But it's a hard read, and I need to learn a few more basics on what exactly counts as capital gains for example to understand what is taxable where... I am leaving for later reading, as I don't think I can start I will start sending money to France for another year. I have enough to learn with local investing already. I might actually consult with a specialist when the time comes.