Table: Deduction for investments in the Canary Islands
Investments that remain in the Canary Islands, made by individuals who carry out economic activities in the Canary Islands and determine their returns by direct estimation, may be eligible for the General Deduction Regime 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 special features with respect to the general regime.
Note: These deductions are incompatible with the deduction for investment in new elements of tangible fixed assets or real estate investments related to economic activities.
| Types of investments | 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% or 90%, generally 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 shows of performing and musical arts (art. 36 LIS ): | In Spanish productions of feature films, short films and audiovisual series (art. 36.1 LIS) | 54/45 percent | |
| In foreign productions of feature films or audiovisual works - for execution costs incurred in Spanish territory - (art. 36.2 LIS) | 54/45 percent (excluded from the joint limit) | ||
| In live shows of performing arts and music -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 per 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 advertising and publicity 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%, 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% or 90%) are raised to 70% and 100% respectively, when the Community regulations on State aid so permit and the investments are covered by Law 2/2016, of 27 September, and other laws on measures to regulate the economic activity of these islands. (Back)
(2) As a result of the interpretative criteria established by the Supreme Court in its Judgment No. 605/2024, of April 10, for the islands of La Palma, La Gomera and El Hierro the single limit of 70% is raised to 80% when the Community regulations on State aid so permit and it concerns investments contemplated in Law 2/2016, of September 27, and other laws on measures for the regulation of the economic activity of these islands. (Back)