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V2541-24 ·11 December 2024 ·consulta-vinculante Medium impact
Tax

Reserve for Investments in Canary Islands in joint property: dissolution of the joint property company breaches the five-year asset maintenance requirement and triggers IRPF regularization

Two brothers, each holding 50% in a joint property arrangement, funded the Reserve for Investments in the Canary Islands (RIC) in 2022 and made investments via the joint property company in 2023. They asked whether this investment was valid. The DGT confirmed that each co-owner individually funds and realizes the RIC in proportion to their share, either through the joint property company or individually, but warned that dissolving the joint property company breaches the five-year maintenance requirement for assets acquired, necessitating IRPF regularization with interest for delay.

In 6 key points

How it affects those involved

The dissolution of a joint property company used to manage a Reserve for Investments in the Canary Islands (RIC) breaches the five-year maintenance requirement for assets, triggering IRPF regularization with interest for delay. Each co-owner must individually account for the RIC realization, with potential tax consequences if the maintenance period is not respected.

Lifecycle

2024-12-11PublishedPublished in the BOE
Official text Based on BOE data (boe.es). Information, not advice.

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This analysis is informational only and does not constitute legal advice or create a client-adviser relationship. BM Consulting.
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