Skip to main content
Practical Handbook for Companies 2021

Canary Islands Investment Reserve.

The reserve for investments in the Canary Islands (hereinafter, RIC) is a tax incentive which allows entities subject to corporation tax (except those excluded under Article 27 and the twelfth additional provision of Law 19/1994, of 6 July), to reduce the taxable base by the amounts which, in relation to their establishments located in the Canary Islands, they allocate from their profits to the reserve for investments in the Canary Islands in accordance with the provisions of Article 27 of Law 19/1994, of 6 July, amending the Economic and Tax System of the Canary Islands.

A tener en cuenta:

When applying this reduction, the special conditions provided for in additional provisions one to four of Royal Decree-Law 15/2014, of 19 December, amending the Economic and Tax System of the Canary Islands, must be taken into account.

Also to be taken into account are the provisions of the single transitional provision of Royal Decree-Law 15/2014, which governs the transitional system applicable to RIC allocations made before 1 January 2015, to advance RIC investments made before 1 January 2015 and to the consideration of income that has benefited from the deduction system of Article 42 of Royal Legislative Decree 4/2004 as not being apt for allocation to the RIC. 4/2004.