9.6.1.Deduction for income obtained in Ceuta or Melilla

The deduction for income obtained in Ceuta or Melilla can be applied in the following cases:

• Taxpayers residing in Ceuta or Melilla

  1. Taxpayers residing in Ceuta or Melilla for a period of less than three years

     Taxpayers who have their habitual residence l in Ceuta or Melilla can apply this deduction for income obtained in Ceuta and Melilla.

     The deduction consists of 60% of the part of the sum of the full state and regional or complementary contributions that proportionally corresponds to the income computed for the determination of the taxable bases that had been obtained in said territories.

  2. Taxpayers residing in Ceuta or Melilla for a period of no less than three years

     This deduction may also be applied to taxpayers who have resided in Ceuta or Melilla for a period of no less than three years, in tax periods beginning after the end of that period for income obtained outside of said cities, provided that, at least, one third of the taxpayer's net assets, determined in accordance with the regulations governing the Wealth Tax, are located in said cities.

  The maximum amount of income, obtained outside said territories, that can enjoy the deduction will be the net amount of the income and capital gains and losses obtained in said cities.

• Non-resident taxpayers in Ceuta or Melilla

  Taxpayers who do not have their habitual residence in Ceuta or Melilla may apply this deduction for income obtained in Ceuta and Melilla.

  The deduction consists of 60% of the part of the sum of the full state and regional or complementary contributions that proportionally corresponds to the income computed for the determination of the positive taxable bases that would have been obtained in Ceuta or Melilla.

  In no case may this deduction be applied to the following income:

  • To those from Collective Investment Institutions, except when all of their assets are invested in Ceuta or Melilla.

  • To the performance of work

  • To capital gains that come from personal property

  • To income from deposits or accounts in all types of financial institutions

  In no case may the amount of this deduction exceed 60% of the total full amount of the Tax, and the program will break down the corresponding state and regional part.

Income obtained in Ceuta or Melilla

For these purposes, the following will be considered income obtained in Ceuta or Melilla:

1. The income from work, when derived from work of any kind carried out in said territories, as well as those derived from unemployment benefits and the social security systems referred to in article 17.2.a) of the Tax Law (art. 58.1 Rgl.).

2. The income that comes from the ownership of real estate located in Ceuta or Melilla or from real rights that fall on them.

3. Those that come from the exercise of economic activities actually carried out in Ceuta or Melilla.

   Operations actually carried out in Ceuta or Melilla are understood to be those that close a commercial cycle in these territories that determines economic results or involve the provision of a professional service in said territories.

   It will not be considered that these circumstances occur when it comes to isolated operations of extraction, manufacture, purchase, transportation, entry and exit of goods or effects thereof and, in general, when the operations do not determine income by themselves (art. 58.2 Rgl.).

   When it comes to fishing and maritime activities, the rules established in article 33 of the consolidated text of the Corporate Tax Law will apply.

4. Capital gains that come from real estate located in Ceuta or Melilla.

5. Capital gains that come from movable property located in Ceuta or Melilla.

6. Income from movable capital from obligations or loans, when the capital is invested in said territories and generates the corresponding income there.

7. Income from movable capital from the leasing of movable property, businesses or mines, when the object of the lease is located and is effectively used in Ceuta and Melilla (art. 58.4 Rgl.).

8. Income from companies that operate effectively and materially in Ceuta or Melilla and with domicile and exclusive corporate purpose in said territories.

9. Income from deposits or accounts in all types of financial institutions located in Ceuta or Melilla.

1. 9.6.1.1. Completion