Bill would let Canary Islands investment funds go to rental housing

Automatic summary, not yet reviewed

1. The bill would allow money set aside in the Canary Islands investment reserve (RIC), about 2,000 million euros still pending, to also be used to buy or renovate apartments for rent.
2. Companies could use the reserve for real estate in the Canary Islands newly put to use as a primary residence rental, with or without an option to buy. The home must be actually rented within 6 months of purchase or of being made habitable, and there can be no ties with the tenant.
3. The reserve could never be used to buy or renovate homes intended for vacation rentals.
4. The reserve could also be used by creating jobs directly linked to these investments, or by buying shares in companies that make investments for housing rentals in the archipelago.
5. Assets bought with the reserve must stay in operation for at least five years (ten for land), without being sold or leased to others. For housing rentals, the period counts from the start of the actual rental.
6. The bill would also amend the postal services law: Correos would be designated the universal postal service operator for 20 years and assigned services of general economic interest, such as access to public administration and basic financial services, compensated through a program contract.

Who it affects

• Canary Islands companies: Companies subject to corporate income taxincome tax The personal income tax (IRPF in Spain): what people pay on what they earn from work, business or savings. with establishments in the Canary Islands that have pending funds in the Canary Islands investment reserve.
• Tenants and housing applicants: Could access protected rental housing if registered in the Canary Islands Public Register of Protected Housing Applicants.
• Self-employed people and personal income taxpayers in the Canary Islands: Could apply the reserve regime if taxed under the direct estimate method and meet the requirements.
• Correos: Would be designated universal postal service operator for 20 years and provider of services of general economic interest.
• Government and public administrations: Must approve the amount and purpose of some debt issues and supervise issues by financial entities.

Words worth knowing

Reserva para inversiones en Canarias (RIC)

Money that companies set aside from profits, deferring taxes, in exchange for investing it in the Canary Islands within certain deadlines and conditions.

Período impositivo

The fiscal year of a company or person, the period on which taxes are calculated.

Arrendamiento

Rental agreement: someone grants the use of a home in exchange for payment.

Vivienda protegida

Housing with a price or rent capped by law, intended for people with fewer resources.

Servicio de interés económico general

A service considered useful for all citizens and therefore guaranteed even if not profitable, such as rural mail delivery.

income tax

The personal income tax (IRPF in Spain): what people pay on what they earn from work, business or savings.

It summarizes the text passed by the Senado. It is written by artificial intelligence and may contain mistakes: the official text is what counts. Read the official text · How we make summaries