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V2562-23 26 September 2023 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · reserva para inversiones en canarias

RIC cannot be applied to the acquisition or renovation of properties for tourist accommodation

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.

The question raised

Whether the construction portion resulting from the purchase of said building, as well as the rehabilitation portion thereof, is considered suitable for the RIC.

The DGT's ruling

Law 19/1994 prohibits the realization of the RIC in the acquisition of real estate intended for tourist housing. Likewise, it establishes the impossibility of applying this benefit to the rehabilitation or renovation of real estate with that same purpose. Therefore, the proposed investment is not suitable for the realization of the reserve.

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