A new incentive for Tenerife property investors
At InvistaForum, we focus on your ROI — analyzing every opportunity to connect investors with profitable and sustainable projects across Tenerife.
The recent update to the Reserva para Inversiones en Canarias (RIC) creates a powerful advantage for companies investing in long-term residential rentals.
How the new RIC rules work
The RIC allows businesses in the Canary Islands to set aside up to 90% of their profits tax-free, provided those funds are reinvested in local assets.
Until now, RIC was mainly used for tourism or industrial projects.
The new regulation now includes housing for long-term rental, allowing investors to use RIC reserves to buy, build, or renovate apartments for residential leasing.
To qualify, the rental activity must be managed as a professional business, not just a passive investment. That means proper contracts, accounting, and active property management.
Why this reform matters for Tenerife
- Lower taxes and higher returns — profits reinvested through RIC reduce the corporate tax burden.
- Support for local housing needs — more quality homes for long-term residents and professionals.
- Sustainable market growth — encouraging investment beyond short-term tourism rentals.
Tenerife, with its growing population and limited housing supply, stands to benefit the most from this change.
A win-win for investors and the island
Using RIC for real estate means transforming tax savings into tangible, income-generating assets.
It’s a strategic way to grow your property portfolio, improve ROI, and support sustainable urban development at the same time.
Our goal
We help investors and developers structure projects that fully leverage RIC advantages — from residential conversions to hotel and mixed-use opportunities.
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