Skip to content
Back to index
V0373-15 2 February 2015 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · reserva para inversiones en canarias

End of activity in Canary Islands triggers RIC deduction reinstatement

A doctor in the Canary Islands asks what happens to their Canary Investment Reserve (RIC) if they cease activity by moving abroad. The DGT responds that closing activity breaches the requirements for investment materialisation and maintenance.

The question raised

For the purposes of the RIC allocations made by the taxpayer, to determine the tax consequences of the cessation of the taxpayer's economic activity as a result of their relocation abroad.

The DGT's ruling

To benefit from the RIC, investments must be linked to a center of activity developed in the Canary Islands. The closure or cessation of activity in the archipelago before meeting the maintenance periods constitutes a breach of obligations. This requires the taxpayer to include the deducted amounts, together with the corresponding late payment interest, in the full tax liability for the fiscal year in which the breach occurs.

Book your free first meeting