Subjective scope and modalities

This deduction applies to taxpayers with habitual and effective residence on the island of La Palma, distinguishing the following modalities depending on whether the period of residence is less than, equal to or greater than 3 years:

1. Taxpayers with residence on the island of La Palma for a period of less than three years

   For taxpayers who have their habitual and effective residence on the island of La Palma, the deduction consists of 60 percent of the part of the sum of the full state and regional contributions that proportionally corresponds to the income computed for the determination of the liquidable bases that had been obtained on the island of La Palma.

2. Taxpayers with residence on the island of La Palma for a period equal to or greater than three years

   Taxpayers who have maintained their habitual and effective residence on the island of La Palma for a period of no less than three years, in tax periods beginning after the end of that period, may also apply the same deduction for income obtained outside of said cities.

   To do this, the following requirement must be met: that, at least one third of the taxpayer's net assets, determined in accordance with the Wealth Tax regulations, is located in La Palma.

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

Note: Unlike the deduction for income obtained in Ceuta and Melilla, this deduction does not apply to taxpayers who do not have their habitual and effective residence on the island of La Palma, even if they obtain income in the same.