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New regulations for 2024

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Main new features Royal Decree 710/2024, of July 23, approving the Regulations for the development of the special tax regime of the Balearic Islands

PERSONAL INCOME TAX

The rules contained in this Regulation will take effect for the tax periods that begin between January 1, 2023 and December 31, 2028.

RESERVE FOR INVESTMENTS IN THE BALEARIC ISLANDS

  • Taxpayers who can benefit from the reservation

    Without prejudice to compliance with the requirements for corporate tax payers, personal income tax payers may enjoy the reserve for investments in the Balearic Islands provided that:

    1. They carry out economic activities of a business or professional nature, as defined in article 27 of Law 35/2006, of November 28, on Personal Income Tax.

    2. Determine your net returns using the direct estimation method, in any of its forms.

    3. Keep accounting records in the form required by the Commercial Code and its implementing regulations from the year in which the profits intended to provide the reserve for investments in the Balearic Islands were obtained until the year in which the assets subject to the investment must remain in operation.

  • Rules applicable to entities whose partners, commoners or participants pay taxes under the income attribution regime

    All legal and regulatory rules relating to the reserve for investments in the Balearic Islands will apply to each of the partners, heirs, commoners or participants, individually considered, who pay personal income tax under the income attribution regime , in everything that does not oppose the provisions of number 13 of section four of the Seventieth Additional Provision of Law 31/2022, of December 23.

    In any case, the rights and obligations derived from the allocation to the reserve for investments in the Balearic Islands will be attributed to the partners, commoners or participants in the same proportion in which they are attributed the net returns of the entity.

    Regarding the materialization of the investment, each partner, commoner or participant may do so through the respective entity and also within the scope of other economic entities that, where appropriate, may be developed outside of that entity.

SPECIAL REGIME FOR INDUSTRIAL, AGRICULTURAL, LIVESTOCK AND FISHERY COMPANIES

  • Taxpayers who can benefit from this regime

    The bonus on the full rate provided for in DA 70 of Law 31/2022, of December 23, on the General State Budget for the year 2023 will be applicable to personal income tax payers who pay taxes using the direct estimation method in any of its forms, normal or simplified.

    In the event that these taxpayers carry out various activities, the bonus will only apply to the part of the income derived from the activities that give rise to the bonus.

    The remaining elements that configure the tax incentives of this special regime are developed in the Corporate Tax regulations.

Real Decreto 710/2024, de 23 de julio,

por el que se aprueba el Reglamento de desarrollo del Régimen fiscal especial de las Illes Balears.