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Practical Manual of Companies 2022.

Deductions to encourage certain activities that apply in the Canary Islands

article 94.1.a) of Law 20/1991 establishes that the applicable rates on the investments made will be 80 percent higher than the of the general regime, with a minimum differential of 20 percentage points, therefore, to calculate the rate applicable to each of the following deductions, the highest of the result of multiplying by 1.8 or adding to the rate in question will be chosen. 20 percentage points.


This rate increase will only apply to the new deduction system established in Chapter IV of Title VI of the LIS , wherever equivalent with the deduction system of article 26 of Law 61/1978.

Next, the way in which the general deductions regulated in the LIS are applied in relation to investments made in the Canary Islands will be detailed, making special mention of the increased rates and the specialties of limits:

  1. Deduction for research and development activities
  2. Deduction for activities related to technological innovation
  3. Deduction for investments in Spanish cinematographic productions
  4. Deduction for investments in foreign cinematographic production
  5. Deduction for investments in production and exhibition of live performing arts and musical shows
  6. Deduction for the creation of employment
  7. Deduction for job creation for disabled workers