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V1829-14 10 July 2014 · SG de Impuestos sobre las Personas Jurídicas Criterion in force
IS · reserva para inversión en canarias

Purchase of second-hand apartments may qualify for RIC, but land requires specific rehabilitation

A tourism company in the Canary Islands asks whether it can use the Canary Investment Reserve (RIC) to buy second-hand apartments. The DGT confirms that purchasing such assets qualifies as non-initial investment, but to include land value, rehabilitation must meet specific requirements.

The question raised

1. Whether it is possible to realize its allocations to the Canary Islands Investment Reserve through the acquisition of the described used apartments.

The DGT's ruling

The acquisition of used apartments is an investment eligible for the RIC under letter C of article 27.4 of Law 19/1994. For the land value to be included in the investment, rehabilitation works must be incorporated into the asset as an increase in value and meet cost thresholds according to the area. Furthermore, if they are intended for leasing, the activity must be economic (providing hotel services or meeting the requirements of the LIRPF) and the company must be a tourism company.

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