Table: Deduction for investments in the Canary Islands
Investments that remain in the Canary Islands, made by natural persons who carry out economic activities in the Canary Islands and determine their returns in direct estimation, may benefit from the General Regime of deductions provided for in the LIS with the specific percentages and limits indicated in the following table.
Note: Please note that although the new deduction for business contributions to corporate social security systems in article 38 ter of the LIS is included in this table, said deduction is applied in the Canary Islands without any specialization regarding to the general regime.
Note: These deductions are incompatible with the deduction for investment in new elements of tangible assets or real estate investments used for economic activities.
| Investment modalities | Percentage of deduction | Joint limit | |
|---|---|---|---|
| For investments in research and development activities and technological innovation (art. 35 LIS ): | In research and development (art. 35.1 LIS) | 45/75.6/28 percent 37 percent (additional) |
60 percent or 90 percent, in general for the Canary Islands 70 percent or 100 percent (for the islands of La Palma, La Gomera and El Hierro) (1) |
| In technological innovation (art. 35.2 LIS) | 45 percent | ||
| For investments in film productions, audiovisual series and live performing arts and musical shows (art. 36 LIS ): | In Spanish productions of feature films, cinematographic short films and audiovisual series (art. 36.1 LIS) | 54/45 percent | |
| In foreign productions of feature films or audiovisual works -due to execution expenses carried out in Spanish territory- (art. 36.2 LIS) | 54/45 percent (excluded from the joint limit) | ||
| In live performances of performing and musical arts -For production and exhibition expenses- (art. 36.3 LIS) | 40 percent | ||
| For job creation for workers with disabilities (art. 38 LIS ) | 11,700/15,600 euros person/year | ||
| For business contributions to corporate social security systems imputed in favor of workers (art. 38 ter LIS ) | 10 percent | 25 percent or 50 percent | |
| For investments in West African territories [art. 27 bis.1.a) Law 19/1994] | 15/10 percent | 25 percent or 50 percent | |
| For propaganda and advertising expenses [art. 27 bis.1.b) Law 19/1994] | 15/10 percent | 25 percent or 50 percent | |
| For investments in the acquisition of fixed assets | 25 percent |
70 percent, in general for the Canary Islands 80 percent (for the islands of La Palma, La Gomera and El Hierro) (2) |
|
Notes:
(1) For the islands of La Palma, La Gomera and El Hierro, the joint limits (60 percent or 90 percent) are raised, respectively, to 70 percent and 100 percent, when the Community regulations on state aid so require. allows and is about investments contemplated in Law 2/2016, of September 27 and other laws of measures for the organization of the economic activity of these islands. (Back)
(2) As a consequence of the interpretative criteria established by the Supreme Court in its Sentence no. 605/2024, of April 10, for the islands of La Palma, La Gomera and El Hierro, the single limit of 70 percent is raised to 80 percent when the Community regulations on state aid allow it and it involves investments. contemplated in Law 2/2016, of September 27 and other laws of measures for the organization of the economic activity of these islands. (Back)