The action was approved retroactively for the whole year 2025 through Royal Decree Law 13/2025 and has been applied since the campaign of 2022 in the successive annual income statements, between April and June of each period. Izquierdo emphasizes that this deduction must be recorded in the box [1847] of Annex A.6 to the declaration of the Tax Agency and argues that “it represents a direct tax relief for Palm Tree taxpayers, reinforcing the Government’s commitment to the economic and social recovery of the Island”.

The Commissioner explains that the estimates of the economic impact of this measure are prepared by a team of statisticians from the State Tax Administration Agency, “with whom I had the opportunity to work directly during my time in the Ministry,” which provides, he points out, “a high degree of reliability and technical rigor to the data.” According to them, the impact of the deduction has experienced significant growth since its inception, going from 78 million euros in 2022 to 88 million euros in 2023, 101 million euros in 2024 and reaching 111 million euros in 2025. This evolution reflects, in the words of Izquierdo, “not only the consolidation of the measure, but also the progressive recovery of economic activity on the island.”

The upward evolution of these figures responds to various factors that are directly reflected in the data of the State Tax Administration Agency, such as the increase in the population, the increase in Social Security affiliates and the growth in the number of companies that operate and contribute in La Palma. Added to this is the effect of inflation, which also influences the total volume of declared incomes. “In short, the declaration of income allows us to observe how the economy of the island is generating more and more activity over the years, in parallel to the progress of the reconstruction process,” adds Izquierdo.