Doctrine by topic · DGT Observatory

Materialization of the Reserve: DGT doctrinal evolution

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

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How the DGT's position has evolved

Settled doctrine High confidence 19 rulings · 2014–2026

Current position

The materialization of the RIC (Reserve for Investment in Canary Islands) occurs when the acquired assets enter into operation for the economic activity. In the case of used goods, the investment is eligible if the entity is of small size or if the requirements of letter C of article 27.4 of Law 19/1994 are met. The investment must affect tangible fixed assets located in the Canary Islands and necessary for the activity.

The DGT's position remains stable regarding the nature of the investment, but it has specified the treatment of used assets and the distinction between initial investment and materialization under letter C. The conditions regarding timing and the causes of non-compliance due to delays beyond the investor's control have also been clarified.

Turning points

  1. V1909-17

    Distinguishes that in used real estate, if they are not an initial investment, the fixed assets are eligible to materialize the reserve, excluding the value of the land.

  2. V1467-18

    Establishes that a delay in putting into operation due to objective causes beyond the investor's control does not constitute non-compliance with the deadline.

Analysis based on 18 of 19 rulings with a stated position. Updated 25 September 2026.

Rulings on this topic

19
V2541-24 11 Dec 2024

Reserve for Investments in Canary Islands in joint property: dissolution of the joint property company breaches the five-year asset maintenance requirement and triggers IRPF regularization

SG de Impuestos sobre la Renta de las Personas Físicas
reserva para inversiones en canariascomunidad de bienesatribución de rentasmaterialización de la reservaactividad económica LIRPF — Ley 35/2006 del IRPF art. 8.3Ley 19/1994 (Régimen Económico y Fiscal de Canarias)
Affects CompanyExpat · Non-residentIndividual
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
V1909-17 18 Jul 2017

Purchase of an office may qualify as RIC investment

SG de Impuestos sobre la Renta de las Personas Físicas
reserva para inversiones en canariasinversión inicialinmovilizado materialestimación directa simplificadaentidades de reducida dimensión Ley 19/1994RD 1758/2007
Affects CompanyExpat · Non-residentIndividual
V0373-15 2 Feb 2015

End of activity in Canary Islands triggers RIC deduction reinstatement

SG de Impuestos sobre la Renta de las Personas Físicas
reserva para inversiones en canariasmaterialización de la reservamantenimiento de la inversióncese de actividadintegración en la cuota Ley 19/1994LGT — Ley 58/2003 General Tributaria art. 89.1
Affects CompanyExpat · Non-residentIndividual

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