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Practical Handbook for Companies 2021


  • In order to be able to make this deduction, it will be necessary to make investments in the Canary Islands in new tangible fixed assets, excluding land, used for the development of the entity's economic activity.The basis for the deduction shall be the purchase price or production cost.

  • In order to qualify for the investment deduction, the items must remain in operation in the business of the same taxable person for 5 years, unless their useful life, in accordance with the depreciation method permitted by law, is shorter.

  • A same investment not may give rise to the application of the deduction in more than one entity.

  • Investments made under financial leasing , with the exception of buildings, are eligible for this deduction.