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Practical manual for Income Tax 2023.

f) Information to be provided in the personal income tax return

The maximum period for materialising the reserve for investments in the Balearic Islands (RIB) is three years, pursuant to the provisions of Additional Provision Seventieth. Four of Law 31/2022, of December 23, on the General State Budget for the year 2023.

This three-year period must be counted from the date of accrual of the tax corresponding to the year in which the allocation (accounting) of the reserve occurs and said allocation in the case of natural persons may be:

  • at the close of the accounting period on December 31 of each year.
  • in the year following the year in which the profit is obtained.

The above determines that natural persons will have an effective period of three or four years to materialize the reserve for investments in the Balearic Islands, depending on when they have made the accounting entry for the provision of the reserve (at the end of the financial year or in the following financial year). The design of the IRPF model responds to this duality (which does not occur in the case of Companies).

Information on allocations and materialisations made in 2023 of the reserve for investments in the Balearic Islands corresponding to the year 2023 and early investments of future allocations will be provided in accordance with the breakdown contained in the corresponding section of Annex A.4 of the declaration as follows:

Allocations and materializations carried out in 2023

  • Box [1937]

    S and will indicate the amount of the allocation for the reserve for Investments in the Balearic Islands made in 2023.

  • Box [1938]

    The year in which the allocation is made will be indicated.

  • Box [1939]

    The amount of the materializations made against the previously declared allocation in the investments provided for in letters A and B of number 4 of section four of the Seventieth Additional Provision will be indicated. Law 31/2022, of December 23, on the General State Budget for the year 2023.

  • Box [1940]

    The amount of the materializations made against the previously declared allocation in the investments provided for in letter C of number 4 of section four of the Seventieth Additional Provision will be indicated. Law 31/2022, of December 23, on the General State Budget for the year 2023.

  • Box [1941]

    The amount of the previously declared allocation that is pending materialization as of December 31, 2023 will be indicated.

Early investments of future allocations to the reserve for Investments in the Balearic Islands, made in 2023

The amount of investments made in 2023 as early materialization of future provisions in those provided for, on the in letters A and and, on the other, in letter C, of number 4 of section four of the Seventieth Additional Provision, shall be indicated in boxes ##2## and [1942] ## ##3####1##, respectively. Law 31/2022, of December 23, on the General State Budget for the year 2023.