Canary Islands tax system

Royal Decree-Law 31/2021, of December 28, with effect from January 1, 2022, modifies the temporal scope regulated in article 27.11 of Law 19/1994, of July 6, modifying the Economic and Fiscal Regime of the Canary Islands, regarding advance investments , establishing that the provisions must be made from profits obtained until December 31, 2023.

With the same effects, the temporal scope regulated in article 29.1 of Law 19/1994, of July 6, modifying the Economic and Fiscal Regime of the Canary Islands, relative to the validity of the Canary Islands Special Zone (ZEC), is modified, establishing that said validity will have as limit December 31, 2027 , extendable with prior authorization from the European Commission.

It should be noted that, as established in the first Additional Provision of the aforementioned Royal Decree-Law 31/2021, these modifications are subject to the authorization by the European Commission of the Map of Aid for Regional Purposes for the period 2022-2027.