SANTA CRUZ DE TENERIFE, 9th March (EUROPA PRESS) –
The Commissioner of the Economic and Fiscal Regime (REF) of the Canary Islands, José Ramón Barrera, along with the Provincial Federation of Construction Entities of Santa Cruz (Fepeco), have shown their support for tax incentives to drive initiatives that enhance the availability of homes for rent.
The regional government stated that all of this is aimed at swiftly addressing the housing crisis currently impacting the archipelago.
In a meeting where nearly twenty sector entrepreneurs participated, builders urged the commissioner to advocate for a reform of the REF law that would provide tax incentives for small savers in the islands to invest in rental properties.
Specifically, employers suggested allowing small business owners and self-employed workers to direct a portion of their earnings towards purchasing homes for rent, reinstating a provision from the Canary Islands Investment Reserve (RIC) that was removed in 2006.
Furthermore, businesses could potentially reduce up to 90% of their corporate tax base through the RIC, while self-employed individuals might cut their personal income tax quota by up to 80%.
Fepeco stated that this tax relief could lead to an increase in the availability of rental homes at an accelerated pace.
Meanwhile, the REF commissioner pledged to evaluate the feasibility and impact of this proposal. “It is evident that we are facing a significant housing challenge in the Canary Islands. Hence, we are eager to explore how the current provisions of the Economic and Fiscal Regime can contribute towards resolving it, as well as identifying new measures that could help address the issue,” Barrera assured.
He further hinted that the jurisdiction of the Canary Islands could play a crucial role in expanding housing supply, as tax incentives might attract a pool of funds seeking investment opportunities towards the real estate sector, ultimately aiding in bolstering the rental market supply, which could also have a positive impact on pricing.
“We are collaborating closely with the sector to devise the most effective solution through consensus. Our aim is for the REF to truly support the progress and welfare of all the Canary Islands,” stressed the commissioner during his media appearance alongside Fepeco President, Óscar Izquierdo, who commended Barrera’s positive reception of their ideas.
In return, Izquierdo and the sector companies’ representatives at the meeting presented a set of priority measures to the commissioner aimed at unclogging the construction of new homes.
These measures include facilitating financing access for both businesses and citizens, as well as streamlining the procedures for obtaining construction permits, which were criticised for prolonging up to three to four years in certain municipalities.
According to the president of the construction employers’ association, the Government of the Canary Islands took a “bold” move by approving the urgent housing measures decree law on 19th February. He expressed hope that the business community will see a favourable outcome once it reaches Parliament.
