Special tax regime of the Balearic Islands
If you are a resident of the Balearic Islands you should read this
Special regime for industrial, agricultural, livestock and fishing companies
1. Taxpayers of Corporate Tax and Non-Resident Income Tax will apply a bonus of 10% of the full quota corresponding to the income derived from the sale of tangible assets produced in the Balearic Islands by themselves, typical of agricultural, livestock, industrial and fishing activities , in the latter case in relation to the catches made in its fishing and aquaculture zone. Persons or entities domiciled in the Balearic Islands or in other territories that are dedicated to the production of such goods in the archipelago, through a branch or permanent establishment, may benefit from this bonus.
2. The above bonus will also be applicable to taxpayers of Personal Income Tax who carry out the same activities and with the same requirements demanded of taxpayers of Corporate Tax, as long as determine the returns by the direct estimation method.
The bonus will be applied to the part of the full quota that proportionally corresponds to the returns derived from the production activities indicated .
3. The application of the bonus in each tax period will require that the average workforce of the entity in said period is not less than the average workforce corresponding to the twelve months preceding at the beginning of the first tax period in that the regime provided for in this section takes effect.
When the entity has been established within the aforementioned period of twelve months, the average workforce resulting from that period will be taken into account.
4. The bonus will be increased to 25% in those tax periods in which, in addition to meeting the requirement provided for in the previous number, there has been an increase in the average workforce of no less than one with respect to the average workforce of the previous tax period and said increase is maintained for at least a period of three years from the end date of the tax period in which this increased bonus is applied.
(...)
6. When the entity has been established in the first tax period in which the regime provided for in this section takes effect, the application of the bonus will require that said entity meet the requirements for the reduced tax rate to apply. newly created entities regulated in article 29.1 of Law 27/2014, of November 27, on Corporate Tax . In this case, the rules established in this number will be followed.
7. The bonus regulated in this section will not be applicable to income derived from the sale of tangible assets produced in the Balearic Islands from shipbuilding activities, synthetic fibers, the automobile industry, the steel industry and the coal industry.