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Practical Income Manual 2022.

Income obtained on the island of La Palma

For these purposes, the following income is considered 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 Law IRPF ##2##(pensions and passive assets, benefits received by beneficiaries of mutual societies, pension plans, insurance contracts concluded with social security mutual societies that generate income from work in accordance with the provisions of the aforementioned article, insured pension plans and the benefits received by the beneficiaries of corporate social welfare plans and long-term care insurance).

  • The income that comes from the ownership of real estate located on the island of La Palma or from real rights that fall on them.

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

    It is estimated that these circumstances do not arise when dealing with 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.

    When it comes to 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 that come from real estate located on the island of La Palma or from movable property located in said territories.

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

  • The income from movable capital 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.

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