The Canary Islands investment Reserve (RIC)
The RIC is a tax advantage for companies located in the Canary Islands that enables considerably reductions on the direct taxation, with the overall aim to encourage investment, job creation and the diversification of the economy.
Since 2007, RIC funds can be invested in carrying out audiovisual productions in the Canary Islands that obtain the stamp of “Canarian work”, a denomination granted by the Canarian Government subject to the prior compliance with a series of requirements that aim to guarantee such a condition.
The reserve must be materialized, among others, in one of the following investments:
- Acquisition of fixed assets.
- Subscription of stocks or shares in the capital of companies that invest in the Canary Islands.
- Investment in venture capital investment funds and companies that reinvest in the Canary Island economy.
- Technological research and development
- Subscription of securities bonds or annotations on account of the Canary Islands.
This maximum period for this materialization of the investment is 3 years, from the date of the accrual of the tax corresponding to the financial year of the provision.