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Practical Handbook for Companies 2021

Summary table of the types of deduction for investments in the Canary Islands

Modalities of deductionPercentages of
deduction
Limits
Research and development expenses (art. 35.1 LIS) 45/75, 6/28%
37% (Additional)
60/90 per 100
70/100 per 100
(La Palma, La Gomera and
El Hierro from 7/11/2018)
Technological innovation expenditure (art. 35.2 LIS) 45 per 100
Spanish film productions (art. 36.1 LIS) (1) 54/45 per 100
Production and exhibition of live performances of performing arts and music (art. 36.3 LIS) (2) 40 per 100
Job creation for workers with disabilities (art. 38 LIS) eur 9.000/12.000
(person/year of increase)
eur 11.700/15.600
(as of 7/11/2018)
Investments in fixed assets 25 per 100

50/70 per 100
60/80 per 100
(La Palma, La Gomera and
El Hierro from 7/11/2018)

Foreign film productions (art. 36.2 LIS) (3)

54/45 per 100
54 per 100

18 million euros
Investments in West African territories and propaganda and publicity expenses (art. 27 bis Law 19/1994) 15/10 by 100 25/50 per 100

Notes to the table

(1) The fourteenth additional provision of Law 19/1994 establishes, with effect for tax periods starting from 1 January 2021, a specific limit for this deduction, indicating that its amount may not exceed 18 million euros, in the case of productions carried out in the Canary Islands.(Back)

(2) The fourteenth additional provision of Law 19/1994, with effect for tax periods beginning on or after 1 January 2021, establishes a specific limit for this deduction, stating that its amount may not exceed 900,000 euros, in the case of expenses incurred in the Canary Islands.(Go back)

(3) The fourteenth additional provision of Law 19/1994, , with effect for tax periods beginning on or after 1 January 2021, establishes a specific limit for this deduction, stating that its amount may not exceed 18 million euros, in the case of expenses incurred in the Canary Islands.Likewise, this provision establishes with respect to the minimum amount of expenditure fixed by letter a) of article 36.2 of the LIS, that the expenses made in the Canary Islands of animation of a foreign production must be higher than 200,000 euros.In relation to the execution of visual effects services, the provisions of letter b) of Article 36.2 of the LIS shall apply. (Back)