With the end of the fiscal year on the horizon, companies in the Canary Islands are faced with the final planning of their allocations to the Canary Islands Investment Reserve (RIC). According to the Leading tax office in the tourist areas of southern Gran Canaria, Constantino 13, Las PalmasThe entry into force of Law 6/2025, which allows for the first time to implement the RIC in the acquisition or construction of homes intended for regular rental, has rewritten investment priorities, especially for the corporate sector with interests, for example, in the municipality of San Bartolomé de Tirajana (Maspalomas).
The key for the Chief Financial Officer (CFO) right now is the date. Provisions to the RIC must be made within a strict legal deadline. The new rule allows investments in rental housing to be applied to RIC provisions made in previous years, provided that the regulatory deadlines are met.However, for purely new investments, the clock is ticking: the reform only applies to homes acquired or built on or after January 1, 2025. This means that companies seeking to optimize their taxation with this new approach must ensure that the acquisition (or the start of construction) is completed and legally structured before the end of the fiscal year.
"In our firm, with More than four decades of experience in tax, legal and business advice in the Canary Islands"We believe that this modification to the REF constitutes a strategic opportunity for both companies and professionals who develop or wish to start a residential rental business. The complexity of the tax regulations requires a detailed and personalized analysis of each case. Therefore, it is essential to study the specific tax implications, as well as the best way to structure the investment to ensure its proper implementation and avoid future contingencies," the firm states.
In a real estate market as tense as that of Maspalomas—a magnet for foreign capital and high profitability, as analyzed in previous articles—the new implementation of the RIC is a game changer: The regulation requires that companies have at least one full-time employee exclusively for leasing activities. This requirement forces companies to create a corporate "build-to-rent" structure, which reduces speculative investment and favors the creation of stable employment.
Zombie Investment Ban: By requiring that the property not have been previously rented in the previous year, the tax incentive is ensured to inject new supply into the island's residential rental market, not to capitalize on existing assets. For hotel groups or construction companies with profits generated in the archipelago, the RIC becomes a vehicle for asset stability, allowing them to allocate tax savings to a tangible asset with the potential for sustained profitability in a prime location like the south of Gran Canaria.
The Importance of Just-in-Time Advice: Given the recent nature of this amendment (Law 6/2025, published on July 29, 2025), legal certainty is crucial. The complexity of the regulations requires a detailed analysis to avoid future tax contingencies. Companies must ensure that the legal structure of their leasing activity meets all labor and time requirements (lease for a maximum term of six months; absence of a relationship with the lessee). With the end of the year approaching, a personalized tax and legal analysis is essential to ensure that the RIC provisions are fully utilized, optimizing the company's tax savings in the final stretch of the fiscal year.
