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V1866-14 14 July 2014 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · reserva para inversiones en canarias

Investment reserve in the Canary Islands may be applied to the purchase of second-hand property (subject to conditions)

A professional operating in the Canary Islands has enquired whether the acquisition of second-hand property qualifies for the Canary Islands Investment Reserve (RIC). The Directorate General for Taxes (DGT) has ruled that second-hand properties may be considered eligible assets, provided they have not previously benefited from this regime or other specific tax deductions.

The question raised

To determine the suitability of the real estate intended for acquisition by the taxpayer for the realization of the allocation to the investment reserve in the Canary Islands.

The DGT's ruling

Used real estate constitutes fixed assets suitable for the realization of the RIC under the assumption of the acquisition of tangible fixed assets that are not initial investments. However, land shall not be included in the amount of the realization if it is not allocated to the specific purposes of the law. Furthermore, these assets must not have previously benefited from the RIC or other deductions for regulated investments.

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