Skip to content
Back to index
V0717-23 24 March 2023 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · deducción por residencia

Treasury Bill yields do not qualify for La Palma residency tax deductions

A resident of La Palma inquired whether yields from Treasury Bills can be counted as income obtained on the island to apply the special tax deduction. The Directorate General for Taxes (DGT) ruled that these yields do not meet the requirements to be considered income obtained within that territory.

The question raised

Whether Treasury Bills are considered to fall within Article 68.4.3.i) of the Personal Income Tax Law for the purpose of applying the deduction for habitual and effective residence on the island of La Palma.

The DGT's ruling

The yields generated by Treasury Bills do not comply with the provisions of Article 68.4.3.f) of the Personal Income Tax Law (LIRPF), and therefore are not considered income obtained in La Palma for the purposes of the special deduction. Likewise, the provision regarding yields derived from deposits or accounts in financial institutions located on the island (Article 68.4.3.i) is also not applicable to them.

Book your free first meeting