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V2954-18 14 November 2018 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · reserva para inversiones en canarias

Acquisition of used property may qualify for the Canary Islands Investment Reserve

A taxpayer inquired whether purchasing and renovating a used property for professional activities allows for the use of the Canary Islands Investment Reserve (RIC). The Directorate General for Taxes (DGT) ruled that investment in used property is eligible, provided it has not previously benefited from the RIC and the land value is excluded.

The question raised

Whether the acquisition of said real estate property is eligible to implement the Reserve for Investments in the Canary Islands.

The DGT's ruling

The acquisition of a used real estate property is eligible to implement the RIC, excluding the land value and provided that the asset has not previously benefited from this regime. In the case of community property, the eligible investment shall be 50 percent of its value. The requirements of allocation and permanence established in the Canarian regulations must be met.

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