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Practical Manual of Companies 2022.


Regulation: Article 27.1 Law 19/1994

  1. The following taxpayers can apply RIC :

    1. Tax payers who have their domicile in the Canary Islands.

    2. Tax payers who do not have their domicile in the Canary Islands , when operate in the Canary Islands through a permanent establishment.

    3. The entities not resident in Spanish territory , when operate in the Canary Islands through permanent establishment , for the income obtained through it.

    4. Entities whose main activity is the provision of financial services or the provision of services to entities that belong to the same group of companies under the terms of article 18.2 of the LIS , when they materialize the endowment in any of the initial investments referred to in article 6 of Royal Decree 1758/2007, of December 28, which approves the Regulations for the development of Law 19/ 1994, of July 6 (see also article 2 of this Regulation).

  2. The part of the profit obtained in shipbuilding activities, synthetic fibers, the automobile industry, the steel industry and the coal industry cannot be covered by the RIC regime , so the reduction on that part of the benefit (section 3 of the eleventh Additional Provision of Law 19/1994, of July 6).

  3. The application of the RIC is conditional on compliance with the Community Guidelines on state aid to the agricultural, forestry, fishing and aquaculture and transport sectors (fourth to sixth additional provisions of the Royal Decree-Law 12/2006, of December 29).

  4. For tax periods beginning on or after November 7, 2018, it is established that, with effect from January 1, 2015, the application of the RIC only when it materializes in investments that are not considered initial , as well as the tax benefits that are considered regional operating aid established in Book II and in article 94 of Law 20/ 1991, in the Law of the Autonomous Community of the Canary Islands, 4/2014, of June 26, in article 26 and in Title V of Law 19/1994, and in the twelfth Additional Provision of Law 43/1995, of December 27, as well as aid for the transport of goods included in the scope of Royal Decree 362/2009, of March 20, and the Order of July 31, 2009 of the Minister of Public Works and Transport of the Government of the Canary Islands, will be subject to the limit of 30 percent of the beneficiary's annual turnover obtained in the Canary Islands.