Doctrine by topic · DGT Observatory

Initial Investment: DGT doctrinal evolution

How the DGT's position on this topic has evolved, and the rulings it rests on.

← DGT Observatory

How the DGT's position has evolved

Settled doctrine High confidence 51 rulings · 2014–2026

Current position

The initial investment for the RIC requires the acquisition of tangible or intangible fixed assets used for the activity in the Canary Islands. If the asset is used, it only qualifies as an initial investment if the entity is of small size and the property has not previously benefited from the RIC; otherwise, it must fall under the acquisition of assets according to letter C of article 27.4 of Law 19/1994. Materialization occurs when the assets enter into operation.

The DGT's position remains constant in the distinction between the creation of assets and the acquisition of assets. It has been reaffirmed that the purchase of used goods has a restrictive treatment, limiting the classification of initial investment to small-sized entities. The criterion regarding the application of letter C for used assets in non-small entities is consistent in the rulings of 2016, 2017, and 2026.

Turning points

  1. V0659-16

    Establishes that investment in used real estate is only an initial investment if the entity is of small size, requiring letter C for all other cases.

  2. V1772-21

    Specifies that the creation of jobs is a way to materialize the RIC under letter B of article 27.4 of Law 19/1994.

Analysis based on 50 of 51 rulings with a stated position. Updated 23 September 2026.

Rulings on this topic

24
V1772-21 8 Jun 2021

Job creation may realise RIC if conditions met

SG de Impuestos sobre las Personas Jurídicas
reserva para inversiones en canariasinversión inicialcreación de puestos de trabajoplantilla mediainmovilizado material Ley 19/1994Real Decreto 1758/2007
Affects CompanyExpat · Non-residentIndividual
V1205-21 30 Apr 2021

Land investment not suitable for RIC without proper allocation

SG de Impuestos sobre la Renta de las Personas Físicas
reserva para inversiones en canariasestimación directainversión inicialinmovilizado materialafectación Ley 19/1994RD 1758/2007
Affects CompanyExpat · Non-residentIndividual

Apply this to your case

Corporate tax advisoryTalk to the team applying this doctrine daily.
Talk to the tax teamWe check whether this criterion affects you and what it means in your situation.
Email
Contact