​The Reserve for Investments (RIC) is one of the main incentives of the Canary Islands Economic and Fiscal Regime (REF in Spanish).

The RIC is a tax advantage for companies and Individuals located in the Canary Islands that enables reductions up to 90% profits lowering the base corporate tax rates to as low as 2.5%.

The reserve must be materialised, among others, in one of the following investments:​

  • Acquisition of fixed assets directly relating to the business activity.

  • Subscription of shares in the capital of companies invested in the Canary Islands.

  • Investment in investment funds and companies that reinvest in the Canary Island economy.

  • Acquisition of share in ZEC Companies.

  • Technological research and development.

  • Subscription of securities bonds or annotations on account of the Canary Islands Government.

This maximum period for this materialisation of the investment is 3 years, from the date of the accrual of the tax corresponding to the financial year of the provision. The investment made must be held for a minimum period of 5 years which can then be dissolved with no further tax implications on the amount invested.

Reserve Investment in Canary Islands (RIC)