Russia IIS Guide 2026 — Individual Investment Account (Тип А и Тип Б)

What is an IIS?

The Individual Investment Account (ИИС — Индивидуальный инвестиционный счёт) is a special type of brokerage account introduced in Russia on 1 January 2015 to encourage long-term retail investment in Russian financial markets. The IIS is governed by Federal Law No. 39-FZ "On the Securities Market" and Article 214.9 of the Tax Code. The core idea is to provide investors with significant tax benefits in exchange for a commitment to hold investments for a minimum period (at least 3 years). The IIS is available exclusively to Russian tax residents (individuals) and can only hold Russian ruble (RUB) cash and securities traded on the Moscow Exchange (Московская Биржа / MOEX).

There are currently three generations of IIS: the original IIS-1 (introduced 2015), IIS-2 (also introduced 2015), and the new IIS-3 (introduced from 1 January 2024). The maximum annual contribution for IIS-1 and IIS-2 is 400,000 RUB per calendar year. For IIS-3, the maximum annual contribution is significantly higher (up to 1,000,000 RUB per year as of 2026, with legislative proposals to increase it further). Only one IIS account per person is allowed at any time — you cannot hold two IIS accounts simultaneously. However, you may open an IIS if you already have a regular brokerage account (брокерский счёт) — the two accounts are independent. Securities held in an IIS are subject to the standard MOEX trading rules, including the T+2 settlement cycle. The account can hold stocks (акции), bonds (облигации) — including OFZ (federal loan bonds), corporate bonds, and Eurobonds denominated in RUB, exchange-traded funds (ETF/БПИФ), and money market instruments.

The purpose of the IIS is to channel household savings into the Russian capital market and reduce dependence on foreign investment. By 2026, over 8 million IIS accounts have been opened in Russia, with total assets exceeding 1 trillion RUB. The accounts are offered by most major Russian brokers, including state-owned banks (Sberbank, VTB) and private brokers (Tinkoff Investments, BKS, Finam, Alfa Capital, Otkritie). The IIS has become the primary vehicle for Russian retail investors to access the stock market with tax efficiency. However, the recent geopolitical situation has significantly altered the investment landscape: foreign stocks have been removed from MOEX listings, and IIS accounts can now only hold Russian securities and ruble-denominated instruments. This means that IIS investors cannot buy shares of Apple, Tesla, or other foreign companies through their accounts — only Russian-issued securities are available.

Type A — Tax Deduction (ИИС-1)

Type A (ИИС-1) provides a tax deduction on contributions you make to the account. Each year you contribute up to 400,000 RUB, you can claim a deduction of 13% (or up to 22% under the progressive NDFL scale for high earners) of the contributed amount, up to a maximum refund of 52,000 RUB per year (or up to 88,000 RUB under the progressive scale). The deduction is available to individuals who pay NDFL (personal income tax) at the standard rate. The mechanism works as follows: you need to have taxable NDFL income in the year of contribution (i.e., you must be employed or have other taxable income) because the deduction is applied against your NDFL liability. If your total NDFL paid in a year is less than the potential refund, the refund is limited to the amount of NDFL you actually paid.

How to claim the Type A deduction: (a) Open an IIS with a broker and contribute up to 400,000 RUB per year. (b) In the following year, file a 3-NDFL tax return (налоговая декларация 3-НДФЛ) with the FNS, including an ИИС-3 application form (утверждённая форма). (c) Attach a certificate from the broker confirming the IIS contributions (справка о зачислении средств на ИИС). (d) Submit electronically through the FNS personal account (Личный кабинет налогоплательщика). The FNS reviews the application and, if approved, refunds the overpaid tax to your bank account within 1-3 months. The refund is capped at 52,000 RUB per year (400,000 × 13%). If you contribute only 200,000 RUB in a year, the refund is 200,000 × 13% = 26,000 RUB. The deduction is available each year for the duration of the IIS (minimum 3 years), meaning you could potentially receive up to 156,000 RUB in total refunds over 3 years (3 × 52,000). Under the progressive NDFL scale introduced in 2025 (13% up to 2.4M RUB income, 15% up to 5M RUB, 20% up to 20M RUB, and 22% above 20M RUB), higher earners can deduct at their marginal rate. For high-income earners with income over 20 million RUB, the effective maximum refund becomes 400,000 × 22% = 88,000 RUB per year.

Important restrictions: Type A and Type B cannot be combined on the same IIS account. You must choose one type when opening the account. You can switch from Type A to Type B or vice versa only by closing the account and opening a new one. The 3-year minimum holding period applies from the date the account was opened (not from the date of each contribution). If you close the account before 3 years, you must return all tax benefits received (the FNS will demand repayment of any refunds, plus penalties). You can withdraw cash from the account only by closing the entire IIS account (partial withdrawals are not allowed for Type A — this is a critical difference from regular brokerage accounts). Dividends and coupon income earned within the IIS are credited to the account and reinvested — they are not taxable as long as they remain within the account. If securities are transferred from the IIS to a regular brokerage account before the 3-year period, the tax benefit is forfeited.

Type B — Capital Gains Exemption (ИИС-2)

Type B (ИИС-2) offers a complete exemption from tax on all trading profits (capital gains) generated within the account. Unlike Type A, there is no deduction on contributions — you contribute money but do not get a tax refund on the way in. Instead, when you withdraw funds after the 3-year minimum period, all profits earned from trading, dividends, and coupon payments are completely tax-free. This is advantageous for investors who expect to generate significant trading profits, especially active traders who buy and sell frequently within the account. Type B is particularly attractive for investors who may not have significant NDFL income (and therefore cannot fully utilise the Type A deduction), such as non-employed individuals, students, or pensioners with small pensions who have savings to invest.

How Type B works in practice: You open an IIS and designate it as Type B (ИИС-2) at the time of opening. You contribute up to 400,000 RUB per year. The broker reports your contributions and account activity to the FNS each year. At the end of the 3-year minimum period, you close the account and withdraw the proceeds. The broker calculates the total taxable profit (net of contributions) and issues a certificate showing that the profit is exempt from NDFL under the IIS Type B rules. You do not need to file a 3-NDFL return for the Type B exemption — the broker withholds no tax on the profits, and the FNS does not require a declaration because the exemption is automatic. However, if you also earn dividends on MOEX shares held in the IIS, the broker acts as a tax agent and withholds 13% NDFL on dividends (this is withheld regardless of Type A or Type B — the dividend tax is not exempted under Type B). The dividend withholding is final and cannot be recovered. Coupon income on corporate bonds and OFZs, however, is not subject to withholding within the IIS — it is paid in full to the account and is exempt from tax when the account is closed.

When Type B makes sense: Type B is optimal when your expected trading profits are high enough that the tax saved exceeds the Type A deduction benefit. The break-even point depends on your marginal NDFL rate and your expected return. For a salaried employee paying 13% NDFL: Type A gives an immediate 13% return (52,000 RUB on 400,000 RUB contributed) regardless of investment performance. Type B gives a tax saving equal to 13% of profits. If you expect to make more than 400,000 RUB in total profit over 3 years (100%+ return), Type B may be better. However, given the market volatility and limits on IIS investment options (only Russian securities), most retail investors find that Type A's guaranteed 13% return is hard to beat. Professional traders with higher risk tolerance and sophisticated strategies often prefer Type B. Some investors use a hybrid approach: open a Type A IIS for the deduction on long-term holdings and a separate regular brokerage account for active trading (since you cannot have two IIS accounts).

Which Type is Better?

Choosing between Type A and Type B depends on your personal financial situation, income level, investment strategy, and investment horizon. The table below provides a decision framework, but the specific choice should be based on a careful analysis of your expected contributions, returns, and tax profile.

Choose Type A if: (a) You are a salaried employee with steady NDFL income — the 13% deduction is a guaranteed, risk-free return on your contributions; (b) You plan to hold investments for the long term and do not trade frequently — the deduction is available regardless of market performance; (c) Your marginal tax rate is 13% or higher (up to 22% for high earners) — the deduction gives you an immediate boost; (d) You contribute the full 400,000 RUB per year — maximising the deduction gives you 52,000 RUB/year back; (e) You are a conservative investor — even if the market declines, you still benefit from the deduction; (f) You want the simplest tax administration — the deduction is claimed once per year through 3-NDFL, and no tax is payable at withdrawal.

Choose Type B if: (a) You are an active trader who expects to generate significant profits — the capital gains exemption saves you 13-22% on trading profits; (b) You do not have sufficient NDFL income to benefit from Type A — for example, non-working spouses, students, pensioners, or freelancers with minimal income; (c) You expect very high returns (over 100% over 3 years) — the tax saved on profits may exceed the Type A deduction; (d) You trade frequently within the account — Type B allows you to compound profits tax-free; (e) You prefer not to file annual 3-NDFL returns — Type B requires no annual tax filing; (f) You plan to use the account for short-term trading strategies (but still need to keep it open for 3 years minimum).

Comparison summary: Type A gives you 52,000 RUB back per year (13% of 400,000) regardless of investment performance. Over 3 years with full contributions, that is 156,000 RUB in total refunds, plus any investment growth. Type B gives you no immediate benefit but exempts all profits from tax. If you contribute 400,000 RUB per year for 3 years (total contributions 1.2M RUB) and the account grows to 2.0M RUB (800,000 RUB profit), the tax saving under Type B at 13% would be 104,000 RUB (13% of 800,000). In this scenario, Type A is better (156,000 RUB refunds vs 104,000 RUB tax saved). If the profit is 1.5M RUB, Type B saves 195,000 RUB, making it better than Type A (195,000 vs 156,000). The crossover point is roughly when the profit exceeds 1.2M RUB (100% return over 3 years). For a high-income earner at 22% marginal rate, Type A gives 88,000 RUB/year (264,000 over 3 years), and Type B saves 22% of profits — the crossover point moves to about 1.2M RUB profit as well (264,000 / 0.22 = 1.2M RUB). Given the high volatility of the Russian market and the limitation to only Russian securities, achieving 100%+ returns over 3 years is possible but not guaranteed. For most retail investors, Type A provides a more stable, predictable benefit.

How to Open an IIS

Opening an IIS is a straightforward process that can be done entirely online through a broker's mobile app or website. You must be a Russian tax resident (residing in Russia for at least 183 days in a 12-month period) with a valid Russian passport or residence permit and a TIN (ИНН). Non-residents cannot open an IIS — this is a strict requirement. You also need a Russian bank account in your name to fund the IIS (the account must be in the same name as the IIS).

Step-by-step process: (a) Choose a broker: Major options include Sberbank Investments (Сбербанк Инвестиции), Tinkoff Investments (Тинькофф Инвестиции), VTB My Investments (ВТБ Мои Инвестиции), BCS Global Markets (БКС), Finam (Финам), Alfa Capital (Альфа-Капитал), and Otkritie Investments (Открытие Инвестиции). Compare commissions: most brokers charge 0.03-0.1% per trade, with minimum commissions of 10-50 RUB per order. Some brokers offer zero commission on MOEX trades for premium clients. (b) Open a brokerage account: If you are already a client of the bank, you can open the IIS in minutes through the mobile app. Otherwise, you may need to visit a branch or submit an online application with identity verification (video call or using the Gosuslugi digital signature). (c) Choose the IIS type: Select Type A (ИИС-1) or Type B (ИИС-2) or the new IIS-3 (ИИС-3). Most brokers clearly present the options during the account opening process. (d) Sign the agreement: An electronic signature (простая электронная подпись) is sufficient for online opening. The broker will send the agreement for signing through the app. (e) Fund the account: Transfer money from your bank account to the IIS via the mobile app. The minimum initial contribution depends on the broker — typically 10,000-100,000 RUB, but some brokers allow opening with zero balance. You can contribute up to 400,000 RUB per year (1,000,000 RUB for IIS-3) and the money is credited to your IIS within minutes.

Documents needed: For online opening, you typically need: (a) Passport of a Russian citizen (паспорт РФ) or other identity document; (b) TIN certificate (ИНН) — the broker can often look this up from the FNS database; (c) SNILS (СНИЛС) — mandatory for tax purposes; (d) Mobile phone number for two-factor authentication; (e) Bank account details for funding and withdrawals. The entire process usually takes 10-30 minutes for existing bank clients. Some brokers also offer the ability to open an IIS through a bank branch if you prefer in-person service. After opening, you receive access to the broker's trading platform (mobile app, web platform, or desktop terminal like Quik or FinamTrade). You can start trading immediately after funding.

IIS Rules and Restrictions

The IIS has several important rules and restrictions that you must understand before opening an account. Violating these rules can result in the loss of tax benefits and potential penalties.

3-year minimum holding period: For both Type A and Type B, the minimum holding period is 3 years from the date the account was opened (not from the date of each contribution). If you close the account before 3 years, you lose all tax benefits. For Type A, you must repay all previously received tax deductions plus interest penalties (the FNS recalculates the tax and charges penalties from the date the refund was received). For Type B, the profits that were previously tax-exempt become taxable at 13-22%. There is no partial exemption — the penalty applies to the full amount of benefits claimed. However, if you die before the 3-year period, the account can be closed without penalty (inherited by heirs who may continue the IIS).

One IIS per person: You can have only one IIS account in your name at any time. You cannot open a second IIS with a different broker while the first remains open. If you are unhappy with your current broker, you can transfer the IIS to another broker (transfer of securities from one broker to another is possible without closing the account, preserving the 3-year period). The transfer process typically takes 1-2 weeks and requires a written application to both the old and new brokers. During the transfer, the account remains active, and you can continue trading. You cannot have two IIS accounts simultaneously even if one is dormant — the rule is absolute. Violation (accidentally opening a second IIS) will result in the closure of one account and loss of benefits.

Only RUB contributions and MOEX securities: The IIS can only be funded with Russian rubles (RUB). Foreign currency contributions are not permitted. The securities held must be traded on the Moscow Exchange (MOEX). You cannot hold foreign stocks directly (shares of Apple, Tesla, etc.) because they were delisted from MOEX. You also cannot hold foreign exchange (USD, EUR) as a cash position within the IIS (unless it is a ruble-denominated currency instrument). You can trade FORTS futures and options on MOEX. ADRs and GDRs of Russian companies listed on MOEX are permitted. Real estate, cryptocurrency, and over-the-counter (OTC) instruments cannot be held in an IIS.

No partial withdrawal: For Type A (ИИС-1), you cannot withdraw money from the account without closing the entire IIS. If you only need 100,000 RUB, you must close the entire account. For Type B (ИИС-2), partial withdrawal of cash above the contribution amount is possible according to some brokers' rules, but this is not standardised — most brokers treat partial withdrawals as partial closure, which may trigger tax consequences. The new IIS-3 (ИИС-3) allows limited partial withdrawals after the first year under certain conditions (see next section). In general, consider IIS money as locked in for 3 years — it should not be needed for emergencies.

Dividend and coupon withholding: Dividends on shares held in the IIS are subject to 13% NDFL withholding by the broker (or 15% for dividends exceeding certain thresholds). This withholding applies regardless of Type A or Type B. The withheld dividend tax is generally not recoverable. The dividend tax is withheld at source — the net dividend is credited to your IIS. Coupon income on OFZs and corporate bonds is not subject to withholding within the IIS — the full coupon amount is credited to the account. Bond coupon income is exempt from tax at withdrawal under both Type A and Type B. This makes bonds a particularly tax-efficient investment within an IIS.

IIS-3 (New Type)

The new IIS-3 (ИИС-3) was introduced on 1 January 2024 as part of a major reform of the IIS system. IIS-3 is designed to address the limitations of the original IIS-1 and IIS-2 and provide greater flexibility and investment capacity. The key changes and features of IIS-3 are significant and make it the preferred option for most new investors.

Higher contribution limits: The annual contribution limit for IIS-3 is 1,000,000 RUB (1 million rubles) compared to 400,000 RUB for IIS-1 and IIS-2. This substantially increases the amount you can invest with tax benefits. Over a 5-year period, you could contribute up to 5 million RUB to an IIS-3. This is particularly beneficial for higher-income investors who want to invest more than the old limit allowed.

No 3-year minimum holding period (if conditions met): IIS-3 does not have a fixed 3-year minimum holding period if the investor meets certain conditions. Instead, the tax benefits become available after 5 years without requiring a formal minimum holding period in the traditional sense. However, the tax benefits are structured differently: the contribution deduction (like Type A) and the capital gains exemption (like Type B) can be combined in a single IIS-3 account — you are no longer forced to choose between them. Under IIS-3, you can get a deduction on contributions AND a capital gains exemption on profits, subject to certain limits. The combined benefit is capped: the deduction is limited to the amount of contributions made, and the combined benefit of deduction and exemption cannot exceed certain thresholds (the exact rules are still being clarified by the FNS).

Expanded investment options: IIS-3 allows for a wider range of investments: (a) Russian stocks and bonds on MOEX (same as IIS-1/2); (b) Certain foreign securities that are listed on MOEX (if available); (c) Investment-grade precious metals (gold, silver, platinum, palladium) via MOEX; (d) Deposits with the broker (for up to a certain percentage of the portfolio); (e) Structured products offered on MOEX. The goal of IIS-3 is to make the IIS system more competitive with global tax-advantaged accounts (like the UK's ISA or the US's IRA). It is expected that IIS-3 will gradually replace IIS-1 and IIS-2 as the standard offering by brokers. Most major brokers now offer IIS-3 as the default option when opening a new IIS. If you already have an IIS-1 or IIS-2, you may be able to convert it to an IIS-3 without losing the 3-year clock, but the rules on conversion are broker-specific — consult your broker directly.

FAQs

Can I have multiple IIS accounts?

No, you are only allowed one IIS account at any time. This applies to IIS-1, IIS-2, and IIS-3 collectively — you cannot have, for example, an IIS-1 with one broker and an IIS-3 with another broker simultaneously. If you open a second IIS, the broker will typically notify the FNS, and the FNS will require the closure of one account (usually the newer one). The loss of tax benefits from the closed account will apply. If you are unhappy with your current broker, you can transfer your IIS to another broker without closing it — this preserves the holding period and tax benefits. The transfer procedure requires a formal application to your current broker and the receiving broker, and the securities are moved directly without triggering a taxable event.

What happens if I close the IIS early?

If you close your IIS before the minimum holding period (3 years for IIS-1/IIS-2, or 5 years for IIS-3 depending on conditions), you lose all tax benefits. For Type A, you must repay all tax deductions received plus interest penalties calculated at the Central Bank key rate. The FNS will send a demand for repayment. For Type B, the profits that were previously tax-exempt become taxable — the broker will withhold NDFL on the profits when you close the account. For IIS-3, if you close early, the combined benefits are recalculated, and any excess benefit over what you would have been entitled to under a regular brokerage account must be repaid. Early closure is permitted at any time (the broker cannot refuse), but the tax consequences make it very costly. There are some exceptions: death, loss of Russian tax residency (moving abroad permanently), or disability of the first or second group — in these cases, the account may be closed without losing the benefits.

Can I withdraw dividends from my IIS?

No, dividends on shares held in an IIS cannot be withdrawn without closing the account. Dividends are credited to the IIS by the broker (after withholding 13% NDFL) and are added to the cash balance in the account. You can use the cash to buy more securities within the IIS, but you cannot transfer it to your bank account. The only way to access IIS cash is to close the entire account (after the 3-year minimum period). Similarly, coupon payments on bonds are credited to the IIS and cannot be withdrawn separately. This "lock-up" of cash income is a significant consideration for income-focused investors who rely on dividend or coupon payments for living expenses — in this case, a regular brokerage account (without tax advantages) would give more flexibility. The new IIS-3 allows limited partial withdrawals (up to the net profit amount) after 1 year from opening, but this is subject to broker rules and FNS interpretation.

Can I invest in foreign stocks through IIS?

As of 2026, foreign stocks are effectively not available for IIS investment due to the delisting of all foreign securities (including US, UK, EU, and Asian stocks) from the Moscow Exchange. The IIS can only hold ruble-denominated securities traded on MOEX. Some brokers previously offered access to foreign stocks through the St Petersburg Exchange (СПБ Биржа), but that exchange has also ceased trading foreign securities due to sanctions. If you want to invest in foreign stocks, you need a regular brokerage account (брокерский счёт) with a broker that offers direct access to foreign exchanges (through sanctioned or non-sanctioned channels). However, be aware that Russian residents face significant restrictions on foreign securities purchases due to Capital Controls and the CBR (Central Bank) regulations. Most Russian brokers have suspended purchases of foreign securities for retail clients. The only practical way to gain foreign exposure within an IIS is through MOEX-listed ETFs (БПИФ) that invest in foreign assets — but even these ETFs have limited availability. For most Russian investors, IIS investment is now limited to the Russian domestic market.

Is IIS available for non-residents?

No, IIS accounts are only available to Russian tax residents — individuals who reside in Russia for at least 183 days in any consecutive 12-month period. Non-residents, including Russian citizens who live abroad permanently, are not eligible. The broker verifies tax residency status based on your registration data and may ask for confirmation. If you open an IIS while a resident and then become a non-resident (e.g., move abroad permanently), you can keep the account open for the remaining minimum period, but you will not be eligible to contribute further funds. After the 3-year period, you can close the account and withdraw without penalty (the tax benefits you previously claimed are preserved). However, your non-resident status may affect the taxation of profits — consult a tax advisor. Foreign citizens (иностранные граждане) who have a Russian residence permit and live in Russia for the required 183 days can open an IIS — they are treated as tax residents for IIS purposes.

What happens to my IIS if the broker goes bankrupt?

Securities held in an IIS are held in your name (or in the broker's nominee account on your behalf) and are protected from the broker's bankruptcy. The securities are not part of the broker's assets, so in case of broker bankruptcy, you retain ownership. The securities can be transferred to another broker. However, cash held in the IIS may not be fully protected — the Russian deposit insurance system (АСВ) covers up to 1.4 million RUB in cash held in brokerage accounts, but only within certain limits and conditions. The National Association of Stock Market Participants (НАУФОР) recommends keeping cash in the IIS to a minimum (invest available cash promptly) to reduce risk. In practice, no major broker has defaulted in Russia since the IIS system was introduced. Choose a broker with a good reputation, regulatory compliance, and membership in the НАУФОР self-regulatory organisation. Sberbank, VTB, and Tinkoff are systemically important financial institutions with strong regulatory oversight.