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 by 100 70/100 by 100 (La Palma, La Gomera and El Hierro as of 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 performing and musical arts shows (art. 36.3 LIS) (2) | 40 percent | ||
| Job creation for workers with disabilities (art. 38 LIS) | 11,700/15,600 euros (as of 7/11/2018) |
||
| Foreign film productions (art. 36.2 LIS) (3) |
54/45 per 100 |
Excluded from the joint limit | |
| Investments in West African territories and propaganda and advertising expenses (art. 27 bis Law 19/1994) | 15/10 percent | 25/50 per 100 | |
| Investments in fixed assets (4) | 25 percent |
70 by 100 |
|
Notes to the table:
(1) With effect for tax periods beginning on or after January 1, 2023, the amount of this deduction may not exceed 36 million euros , in the case of productions made in Canary Islands. In the case of audiovisual series , the deduction will be determined per episode and the maximum amount of deduction will be 18 million euros . (Back)
(2) With effect for tax periods beginning on or after January 1, 2021 , the amount of this deduction may not exceed 900,000 euros , when it comes to expenses incurred in the Canary Islands. (Back)
(3) With effect for tax periods beginning on or after January 1, 2023, the amount of this deduction may not exceed 36 million euros, in the case of expenses incurred in Canary Islands. In the case of audiovisual series , the deduction will be determined per episode and the maximum amount of deduction will be 18 million euros . In relation to the minimum amount of expense established by letter a) of article 36.2 of the LIS, the expenses made in the Canary Islands of 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 joint limit of 70 percent (80 percent for the islands of La Palma, La Gomera and El Hierro) is applied with respect to the deduction generated both in the tax itself and in those generated in previous tax periods. (Back)