When investing through Admirals, it is important to know not only about tax benefits, but also about the protection of your investments. One of the most important security measures is the insurance protection of Cyprus client funds up to EUR 100,000, which applies to clients who have an account with Admirals Europe Ltd.
This protection is also relevant for residents declaring an investment account to the Tax Inspectorate.
What is an investment account?
An investment account is a special account that a resident uses only for investments in certain financial instruments, as defined in Article 121 of the Income Tax Act, and which:
- is held in a financial institution established in the EEA, an OECD country or a country with which Lithuania has a double taxation agreement (Article 2, paragraph 381 of the Income Tax Act);
- is declared to the tax administrator (VMI) as an investment account;
- allows a resident to defer the payment of Income Tax until the funds are withdrawn from the account.
Can an Admirals Europe Ltd account be considered an investment account?
Yes. Admirals Europe Ltd is a licensed and regulated financial brokerage firm, based in the European Economic Area (EEA) country of Cyprus.
Therefore, accounts held with Admirals in Cyprus qualify for investment account status under the VAT Act.
Client Protection up to €100,000 in Cyprus
Admirals EuropeLtd is included in the Cyprus Investor Compensation Fund (ICF). In addition, client funds are additionally protected by insurance up to €100,000 per client in the event of the company becoming insolvent due to unforeseen circumstances.
What is the protection:
- The protection applies to more than 99% of all our clients, who will be covered via the insurance policy investment funds held with Admirals Europe Ltd.
- The maximum compensation is €100,000 per client.
- The insurance is provided by partners of Lloyd's Insurance Company S.A. ensuring additional financial security.
Investment account and client fund protection – how are they related?
An investment account allows you to use tax benefits if the account is declared to the State Tax Service.
Client fund protection up to EUR 100,000 is an additional security mechanism, but does not replace the declaration obligation.
When declaring an investment account to the State Tax Service, the most important thing is that it is:
- kept in an appropriate financial institution (Cyprus Financial Institution – appropriate),
- used only for investments in appropriate financial products (e.g. shares, ETFs, CFDs linked to listed shares),
- and declared on time (by submitting the FR0953 form via EDS).
What should you do?
- If you have an account with Admirals Europe Ltd and use it only for investment, you can register it as an investment account.
- Log in to the VMI EDS and submit the FR0953 form - "Notification of opening an investment account".
- Check whether you are using financial instruments permitted by Article 121 of the Income Tax Act.
- Track the movement of deposits and withdrawals - the tax is applied only when withdrawals exceed deposits.
An investment account with Admirals is an attractive option for those who want to invest in stocks and ETFs, with the potential for tax benefits depending on applicable rules, while offering a flexible trading platform.
However, it is necessary to follow the declaration procedure established by the Tax Inspectorate and regularly monitor tax news. More information about declaring an investment account can be found on the Tax Inspectorate website: FAQ
If you have additional questions or need assistance opening an investment account, please contact the Admirals customer service team or the Tax Inspectorate consultants.
For individual situations or detailed tax issues, it is recommended to consult with financial or tax specialists.
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