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The third-generation IIA: what it gives and what it restricts

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The third-generation IIA: what it gives and what it restricts — Taxes and the Russian IIA
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An individual investment account is an ordinary Russian brokerage account with tax relief attached and an obligation not to close it early.

Two reliefs instead of a choice

Earlier account types forced a choice: either the contribution deduction or the income exemption. The third type gives both.

The contribution deduction runs up to RUB 400,000 a year. It is not a gift: only tax already paid on other income can be reclaimed. Someone with no taxable income has nothing to reclaim.

The income exemption on closing applies up to RUB 30m across the entire life of the account.

The price is the term

An account opened in 2026 must survive 5 years. For accounts opened later the minimum term grows, reaching ten years.

How many accounts

You may hold three accounts at once — the limit is counted across all brokers and management companies together.

Who it suits

Someone with taxable income (otherwise the first relief does nothing) whose horizon is knowingly longer than the minimum term. Money that might be needed sooner does not belong here — see The horizon: the one parameter you cannot change by deciding to.

Instrument restrictions

The set of assets available inside such an account is narrower than on an ordinary one; the details change and are worth confirming with the broker before opening.

What to choose if the term does not fit

An ordinary account plus long-term ownership relief: it requires no special account and places no restriction on withdrawals.

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Frequently asked

What happens if the account is closed early?
Every deduction received has to be returned and the income exemption does not apply. The account becomes an ordinary brokerage account retroactively.
Can you hold an IIA and an ordinary account at the same time?
Yes. The limit applies only to the number of IIAs; ordinary brokerage accounts are unrestricted.

Sources

  • Налоговый кодекс РФ, часть вторая, глава 23
Следующий шаг курса «Taxes for investors» · разборLong-term ownership relief: paying no tax without arranging anything in advanceThree years of holding exempt a substantial part of the gain from tax — and no special account is needed.Читать дальше Предыдущий шаг: The contribution deduction: where the refunded money comes from
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