Income that is considered obtained in Ceuta or Melilla

For these purposes, the following incomes are considered to be obtained in Ceuta or Melilla:

• 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).

  Note: For the purposes of applying this deduction, residence is given by the fact of residing or dwelling as a material and effective reality.

  Therefore, the taxpayer who, at least for part of the tax period, has resided in Ceuta or Melilla, has the right to the deduction in proportion to the time of his residence in said cities. Interpretative criteria established by the Supreme Court in Judgment No. 1219/2020, of September 29, issued in the administrative appeal No. 1735/2019 ( ROJ : STS 3175/2020).

  The factual assumption set out above by the Supreme Court in Judgment No. 1219/2020 includes the mere fact of living or residing "temporarily" in said territories with overnight stays included . Resolution of the Central Economic-Administrative Court (TEAC), dated July 24, 2023, Claim number 00/00453/2023, issued in an extraordinary appeal for unification of criteria.

• Income from ownership of real estate located in Ceuta or Melilla or property rights that affect them.

• Income from economic activities actually carried out in Ceuta or Melilla. For these purposes, economic activities effectively carried out in Ceuta or Melilla 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 in Ceuta or Melilla 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 derived from the leasing of movable property, businesses or mines, when the object of the lease is located in Ceuta or Melilla and is effectively used in said territories.

• Income from companies that operate effectively and materially in Ceuta or Melilla that correspond to income to which the bonus established in article 33 of the LIS is applicable, in the following cases:

  1. When they have their domicile and exclusive corporate purpose in said territories.

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

  3. When they operate effectively and materially in Ceuta or Melilla for a period of no less than three years and obtain income outside of said cities, provided that with respect to said income they are entitled to the application of the bonus provided for in section 6 of article 33 of the LIS . For these purposes, the reserves from income to which the bonus established in article 33 of the LIS would have been applied must be identified.

     To identify the reserves from these incomes, entities that obtain income with the right to apply the bonus provided for in article 33.6 of the LIS must include in the annual accounts report the information determined by article 58.2 of the IRPF Regulations

     Precision: Article 33 of the LIS establishes for taxpayers of the aforementioned tax a 50% bonus on the part of the full quota that corresponds to income obtained in Ceuta or Melilla by entities that operate effectively and materially in said territories.

     Section 6 of the aforementioned article 33 of the LIS determines that entities that operate effectively and materially in Ceuta or Melilla for a period of no less than 3 years may apply the bonus provided for in said article 33 for income obtained outside said cities in the tax periods that end after the aforementioned period has elapsed when at least half of their assets are located in those cities. However, income from the leasing of real estate located outside of these territories is exempt from the provisions of this section. The maximum amount of income with the right to the rebate is that of the income obtained in Ceuta and Melilla.

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