Summary table of the types of deduction for investments in the Canary Islands
| Deduction modalities | Percentages of deduction |
Joint limit | |
|---|---|---|---|
| Research and development expenses (art. 35.1 LIS ) | 45/75.6/28 per 100 37 per 100 (additional) |
60/90% 70/100 (La Palma, La Gomera and El Hierro from 7/11/2018) |
|
| Technological innovation expenses (art. 35.2 LIS) | 45 percent | ||
| Spanish film productions (art. 36.1 LIS) (1) | 54/45 percent | ||
| Production and exhibition of live shows of performing and musical arts (art. 36.3 LIS) (2) | 40 percent | ||
| Job creation for workers with disabilities (art. 38 LIS) | 11,700/15,600 euros (as of 11/7/2018) |
||
| Foreign film productions (art. 36.2 LIS) (3) |
54/45 percent |
Excluded from the joint limit | |
| Investments in West African territories and advertising and publicity expenses (art. 27 bis Law 19/1994) | 15/10 percent | 25/50 per 100 | |
| Investments in fixed assets (4) | 25 percent |
70% |
|
Notes to the table:
(1) With effect for tax periods beginning on or after 1 January 2023, the amount of this deduction may not exceed 36 million euros , when it concerns productions made in the Canary Islands. In the case of audiovisual series , the deduction will be determined per episode and the maximum deduction amount will be 18 million euros . (Back)
(2) With effect for tax periods beginning on or after 1 January 2021 , the amount of this deduction may not exceed 900,000 euros , when it concerns expenses incurred in the Canary Islands. (Back)
(3) With effect for tax periods beginning on or after 1 January 2023, the amount of this deduction may not exceed 36 million euros, when it concerns expenses incurred in the Canary Islands. In the case of audiovisual series , the deduction will be determined per episode and the maximum deduction amount will be 18 million euros . In relation to the minimum expenditure amount set by letter a) of article 36.2 of the LIS, the expenses incurred in the Canary Islands for animation of a foreign production must be greater than 200,000 euros . Regarding the execution of visual effects services , the provisions of letter b) of article 36.2 of the LIS will apply. (Back)
(4) A limit of percent (80 percent for the islands of La Palma, La Gomera and El Hierro) applies to the deduction generated both in the tax period itself and those generated in previous tax periods. (Back)