Chapter 13. Special tax regime of the Balearic Islands
With effects for the tax periods that begin between January 1, 2023 and December 31, 2028, the seventieth Additional Provision of Law 31/2022, of December 23, introduces the special tax regime of the Balearic Islands, in recognition of the specific and differential fact of its insularity.
This special regime allows taxpayers of Corporate Tax and Non-Resident Income Tax to apply a series of tax benefits that are developed below.
Keep in mind:
The regulation and application of these tax benefits must comply with the provisions of European Union Law . In this way, the tax benefits will only apply to taxpayers who carry out their activity in the areas regulated in Regulations (EU) 360/2012, 1407/2013, 1408/2013 and 717/2014 relating to the application of articles 107 and 108 of the Treaty on the Functioning of the European Union to minimis aid granted to companies that provide services of general economic interest, in the sector agricultural and in the fishing and aquaculture sector, as well as the Regulations that succeed them.These tax benefits, together with any other aid received under the applicable regulations, may not exceed the amounts that, for their respective scope of application, are established by the Regulations cited in the previous paragraph over a period of three years.
In relation to the limits established in the aforementioned community regulations, measures are established that are pending regulatory development for the calculation of the tax benefit, the establishment of a monitoring and control system (the presentation of an informative declaration regarding the aid received must be approved) and for the application of a sanctioning regime in case of non-compliance with said limits.