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Practical manual for Income Tax 2022.

Income obtained on the island of La Palma

For these purposes, the following incomes are considered to be obtained on the island of La Palma:

  • Income from work , when derived from work of any kind carried out in said territories and, in particular, unemployment benefits and those regulated in article 17.2.a) of the Personal Income Tax Law (pensions and passive earnings, benefits received by beneficiaries of mutual societies, pension plans, insurance contracts entered into with social security mutual societies that generate income from work in accordance with the provisions of the aforementioned article, insured pension plans and benefits received by beneficiaries of company social security plans and dependency insurance).

  • Income from ownership of real estate located on the island of La Palma or property rights that affect them.

  • The income derived from the exercise of economic activities actually carried out on the island of La Palma. For these purposes, economic activities effectively carried out on the island of La Palma are considered to be those that close a commercial cycle in these territories that determines economic results or involves the provision of a professional service in said territories.

    It is estimated that these circumstances do not apply when it comes to isolated operations of extraction, manufacturing, purchase, transportation, entry and exit of goods or effects and, in general, when the operations do not determine income by themselves.

    In the case of fishing and maritime activities, the rules established in article 33.4 and 5 of the LIS will apply. See in this regard Law 27/2014, of November 27, on Corporate Tax ( BOE of November 28).

  • Capital gains arising from real estate located on the island of La Palma or from personal property located in said territories.

  • Income from movable capital arising from bonds or loans, when the capital is invested in said territories and the corresponding income is generated there.

  • Income from movable capital arising from the leasing of movable property, businesses or mines, when the object of the lease is located on the island of La Palma and is effectively used in said territories.

  • Income from deposits or accounts in all types of financial institutions located on the island of La Palma.