What the RIC allows
The Canary Investment Reserve (RIC) lets you reduce your corporate tax base by up to 90% of undistributed profit for the year, in exchange for committing to invest that amount in the Canary Islands.
What it can be invested in
In fixed assets used in the business, job creation, subscribing to certain shareholdings, or Canary public debt — within the categories the regulation sets out, and respecting the investment and subsequent maintenance deadlines.
The costly mistakes
Allocating funds without a realistic investment plan, investing in assets not used in the business, or failing to maintain the investment for the required period causes the tax benefit to be lost, with late-payment interest on the affected years' tax bills. The RIC is an excellent tool, but it requires documentation and year-by-year follow-through.