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A pharmacist in the Canary Islands enquired whether the Canary Islands Investment Reserve (RIC) could be used to purchase and renovate a historic building for non-hotel tourist activities. The Directorate General for Taxes (DGT) ruled that the regulations expressly prohibit using the RIC for the acquisition, renovation, or refurbishment of properties intended for tourist accommodation.
This ruling clarifies that tax incentives under the RIC cannot be leveraged to invest in the holiday rental sector, specifically regarding residential properties used for tourism.
The tax team reviews your specific situation.
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