Modalities

The application of the deduction for income obtained in Ceuta or Melilla has different modalities depending on whether the taxpayer resides or not in Ceuta or Melilla and, in the case of taxpayers resident in these cities, depending on whether the period of residence is less than, equal to or greater than 3 years. Consequently, the deduction has the following modalities:

1. Taxpayers resident in Ceuta or Melilla for a period of less than three years

   In this case, the deduction consists of 60 percent of the part of the of the full state and regional quotas that proportionally corresponds to the income computed for the determination of the taxable bases that would have been obtained in Ceuta or Melilla.

2. Taxpayers resident in Ceuta or Melilla for a period of no less than three years

   Taxpayers who have resided in Ceuta or Melilla for a period of no less than three years, in tax periods beginning after the end of that period, may apply the same deduction also for income obtained outside of said cities .

   To do this, the following requirement must be met: q that at least one third of the net assets of taxpayer , determined in accordance with the Wealth Tax regulations, is located in Ceuta or Melilla.

   The maximum amount of income, obtained outside of said cities, that can enjoy the deduction will be the net amount of the returns and capital gains and losses obtained in said cities .

3. Taxpayers not resident in Ceuta or Melilla

   Taxpayers not resident in Ceuta or Melilla may deduct 60 percent of the part of the of the full state and regional quotas that proportionally corresponds to the income computed for the determination of the positive taxable bases that would have been obtained in Ceuta or Melilla.