The RIC may be used to build rental housing in the Canary Islands, but not for vacation rentals.
Congress approved this Wednesday a tax discount for companies investing in the rental sector.

Congress approved this Wednesday a tax discount for companies investing in the construction or renovation of rental housing in the Canary Islands. Investments aimed at vacation rentals will not be eligible.The incentive is included in a reform of the islands’ Economic and Fiscal Regime (REF) approved by the Lower House’s Finance Committee, with full legislative authority, which allows corporate profits allocated for this purpose to be included in the Canary Islands Investment Reserve, a reduced taxation system for corporate income tax purposes.

With the favorable votes of the PSOE, PP, and Mixed, the abstention of Vox, and the opposing vote of Sumar, the proposal presented by the Socialists and the Canary Islands Coalition has been approved with full legislative competence and will continue its path to the Senate, where it will have to be put to a vote for final approval.

The Minister of Public Works, Housing, and Mobility of the Canary Islands Government, Pablo Rodríguez, welcomed the decision of Congress, approving this proposal in an audio recording sent by his department. He emphasized that part of the estimated €2 billion allocated to the RIC can now be used for the purchase and construction of rental housing.

This was, according to Rodríguez, “one of the main objectives” that the regional government had set for itself to increase the housing supply in the archipelago and “respond to the housing emergency” it is experiencing.