RIC Canary Islands Investment Reserve

WHAT IS RIC?

(Ric - Canary Investment Reserve)

The Canary Islands Investment Reserve (RIC) is a tax incentive for investment in the Canary Islands that, for businesses, operates on the tax base of the tax.

RIC is a big advantage that allows up to 90 percent of net taxable income to be set aside in an accounting reserve for reinvestment in the Canary Islands.

Therefore no tax is paid on the profits set aside in the RIC reserve.

WHO IS ELIGIBLE FOR RIC?

The following taxpayers are eligible for the RIC:

Corporate taxpayers with tax domicile in the Canary Islands.
Corporate taxpayers who, without having a tax domicile in the Canary Islands, operate in the Canary Islands through a permanent establishment.
Persons not resident in the Spanish territory, when they operate in the Canary Islands through a permanent establishment, for income obtained through it.
Entities whose main activity is the provision of financial services or the provision of services to entities belonging to the same group of companies in accordance with Article 18.2 of the LIS, when they materialize the endowment in one of the initial investments provided for in the Law .

ENTERPRISES ENGAGED IN THE RENTAL OF REAL ESTATE

ARE COMPATIBLE WITH THE RIC REGIME ENTITIES DEVOTED TO RENTAL HOUSING FOR THOSE DWELLINGS IN WHICH THE RESERVE FOR INVESTMENT IN THE CANARY ISLANDS HAS MATERIALIZED

There is no violation of the regime of entities devoted to the rental of housing for which an entity has concretized RIC, nor does the RIC regime, in determining its compatibility, exclude the possibility that its exploitation by rental may be tax deductible.