The Canary Islands are located in a privileged territory for attracting capital and businesses.
Its status as an outermost region has enabled it to develop an Economic and Fiscal Regime (REF) that differs from the rest of Spain and the European Union, in some cases with better instruments and advantages than some areas considered tax havens, and with complete legal certainty.
One of the most beneficial instruments is the RIC (Canary Islands Investment Reserve).
What is the RIC?
- A tax incentive that allows the corporate tax base to be reduced by up to 90% of undistributed profits, also applicable to personal income tax up to 80%.
- The profit is reinvested as self-financing for the company, strengthening its net worth, or in assets of other companies, and in the case of professionals, in their own necessary assets.
In this way, the task of generating wealth and employment is transferred to the private sector, which can recover profits instead of paying them to the Treasury or tax authorities.
Who can benefit from the RIC?
- All companies subject to corporation tax and with a permanent establishment in the Canary Islands, regardless of where they are domiciled.
- Individuals subject to personal income tax who carry out business or professional activities.
- Non-resident individuals and entities operating in the Canary Islands through a permanent establishment.
What can be invested in or materialised with RIC?
Among others in:
- The creation or expansion of an establishment.
- The diversification of an establishment for the manufacture of new products.
- The substantial transformation of an establishment’s production process.
- The subscription of shares or equity interests in the incorporation or capital increase of companies (including ZEC companies).
- Productive business investment.
- The initial investment in land (built or unbuilt).
- Job creation.
- Financial instruments issued by financial institutions.
- In R&D&I.
- In Audiovisual.
- In any company engaged in economic activity.
TODO ES SINGULAR has investment projects (both its own and those of third parties) ready to receive RIC investment. It also advises companies that may set up in the Canary Islands to benefit from the RIC, which is also compatible with other instruments such as the ZEC or the DIC.
*This post is the property of TODO ES SINGULAR, S.L. and the information contained herein may be used by third parties with the express written authorisation of the source.
