For the temporary and free transfer of use of properties located on the island of La Palma

Regulations: First Additional Provision. Three Revised Text of the current legal provisions issued by the Autonomous Community of the Canary Islands on transferred taxes, approved by Legislative Decree 1/2009, of April 21.

Note: This deduction is not applicable in the case of taxpayers who died before September 19, 2021.

Amount of deduction

200 euros for the year in which they carry out, on a precarious basis, the temporary and free transfer of use of properties located on the island of La Palma.

Please note that “full months of the year” must be understood as calendar months, so the deduction can only be applied for the months in which the property is transferred from the 1st to the 30th or 31st of the month in question.

Time frame for the application of the deduction

This deduction will be applicable exclusively in the years 2021 and 2022.

Requirements for applying the deduction

The transfer of use must be of the entire property, not a part, and for a minimum period of 3 months.

The "minimum period of 3 months" is determined from date to date, since the purpose of this deduction is to facilitate rapid accommodation for the numerous people affected by the volcanic eruption, without having to wait until the 1st of the calendar month.

However, although to be eligible for the deduction the transfer period must be at least 3 months, the amount of the applicable deduction is based on each of the complete months in which the transfer was made. Thus, for example, if a property is transferred from September 20 to December 22, 2021, the taxpayer will be entitled to the deduction because the transfer period is longer than 3 months, but the applicable amount will only be 400 euros since the amount of 200 euros only applies for the months of October and November, as these are the complete months of the year in which the transfer took place.

Likewise, if the property has been transferred for three or more months, but only part of the transfer has taken place in 2021, with a duration of less than 3 months, the deduction can be applied in that year for the full months that occur in 2021. Thus, for example, if a taxpayer transfers a property from November 3, 2021 to February 8, 2022, in 2021 the deduction will apply for the month of December (not November because it is not a full month) and in 2022 for the month of January (not February because it is not a full month).
The beneficiary of the transfer must be any person or entity that has lost a property, due to it having been destroyed or having become uninhabitable or inaccessible as a result of the volcanic eruption that began on September 19, 2021.
To do so, the beneficiary must prove by any means of proof admissible in law the existence and ownership, as owner, usufructuary or bare owner, of the property that has been destroyed or made uninhabitable or inaccessible as a result of the volcanic eruption,
The property whose use is transferred must be used by the beneficiary as a home or for the development of an economic, health, educational, scientific, cultural, social, sporting or religious activity, and cannot be transferred to third parties.
When there are several owners of the property, whether as owners, usufructuaries or bare owners, the amount of the deduction will be prorated among them in proportion to their percentage of ownership.

When there are usufructuaries and bare owners of the property, to prorate the amount of the deduction corresponding to the property in question, the percentages of usufruct and bare ownership will be computed at half their value (since the property is divided between the usufructuary and the bare owner) so that the sum of the ownership percentages is equal to 100.

Limits on deduction

The maximum deduction amount is subject to a double limit:

It cannot exceed 1,500 euros for each property, both in individual and joint taxation.
It cannot exceed 35% of the autonomous community's full quota for the year