What Is an IIS? Russia's Individual Investment Account Explained
An IIS (individual investment account) is a brokerage account in Russia that comes with tax benefits from the government in exchange for a long holding period. Here's the general idea without unnecessary detail.
What it is
An IIS is a special type of brokerage account for Russian citizens and tax residents. You can buy the same stocks, bonds, and funds with it, but the government offers tax benefits to encourage people to invest for the long term.
How it differs from a regular account
| Regular brokerage | IIS | |
|---|---|---|
| Tax benefits | Standard | Additional |
| Withdrawals | Anytime | Restricted: closing early means losing the benefits |
| Contribution limits | None | Yes |
| Holding period | Any | A minimum period to qualify for benefits |
Types of benefits
- A deduction on contributions: a refund of part of the income tax on the money you deposit.
- Tax exemption on income earned in the account if you meet the holding period.
IIS rules have already changed: new account types have been introduced, and holding periods and limits have been revised. Check the exact current terms on the website of the Russian tax service, the Moscow Exchange, or with your broker before opening one.
Who it's for
People who are ready to invest for years and won't withdraw money early. If you might need the money soon, a regular account is more flexible. Approaches to a long-term portfolio are covered in the article how to build a portfolio and the lesson brokers, accounts, and order types.
Aspiro Invest is a medium-term portfolio: what to hold, when to review it, and where the protective levels are.
- An IIS is a brokerage account with tax benefits in Russia.
- You need to keep the money in for a long time, and closing early means losing the benefits.
- Check the exact limits and holding periods with your broker and the tax service.
Frequently Asked Questions
Can you lose money in an IIS?
Yes. An IIS is a tax wrapper, not protection against losses. Your results depend on what you buy.
Can I have more than one IIS?
It depends on the current rules and the account type, which have changed over time. Check the current terms with your broker.
What happens if I close an IIS early?
As a rule, you lose the tax benefits and have to pay back any deduction you received. The details depend on the account type.
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