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A Canary Islands company has requested clarification regarding the maximum percentage allowed for RIC funding and whether the purchase of a second-hand property and its land qualifies as an eligible investment. The DGT ruled that funding is capped at 90% of undistributed profits originating from the Canary Islands and stated that the eligibility of the investment depends on meeting specific requirements regarding the nature of the asset and the activity performed.
Companies operating in the Canary Islands can optimise their tax planning by utilising the RIC, provided they adhere to the 90% profit cap and ensure that investments meet the specific criteria for asset type and business activity.
The tax team reviews your specific situation.
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