the best tax regime in the Eurozone
The Canary Islands Special Zone
The Spanish Autonomous Region of the Canary Islands, internationally famous for being a prime tourist destination with over 10 million annual visitors, consists of 8 volcanic islands – each with different micro-climates, landscapes, and ways of living. However, all of the islands form a unique global strategic business hub: the Canary Islands Special Zone.
Here are the 4 main financial pillars of the best taxation regime in the Eurozone:
4% Corporate Income Tax Rate
Companies approved to operate under the Canary Islands Special Zone are set to pay 4% of corporate income tax rate right from the start.
0% Withholding Tax for dividend distribution
Tax breaks including 0% withholding tax for dividend distribution to corporations in Spain, in the EU or anywhere else are available for businesses operating in the Special Tax Zone.
<90% Deduction of Reinvested Profits
The Canary Islands Investment Reserve (RIC) is a major tax incentive program under the Canary Islands Economic and Fiscal Regime (REF), compatible with the Special Tax Zone, which allows for corporations to deduct up to 90% of profits invested in fixed assets, company shares and others.
0% VAT, Property Transfer Tax and Stamp Duty
With a different VAT compared to the rest of Spain, the Canary Islands General Indirect Tax (IGIC) is set at a 0% rate: when exporting goods or services abroad, for air and maritime transport, or when conducting business with other companies in the special tax zone. Otherwise, the ordinary rate applied to most goods and services is 7%. Also, Canary Islands Special Zone Entities can be exempt from Capital Transfer Tax and Stamp Duty.
4% Corporate Income Tax Rate
Companies approved to operate under the Canary Islands Special Zone are set to pay 4% of corporate income tax rate right from the start.
0% Withholding Tax for dividend distribution
Tax breaks including 0% withholding tax for dividend distribution to corporations in Spain, in the EU or anywhere else are available for businesses operating in the Special Tax Zone.
0% VAT, Property Transfer Tax and Stamp Duty
With a different VAT compared to the rest of Spain, the Canary Islands General Indirect Tax (IGIC) is set at a 0% rate: when exporting goods or services abroad, for air and maritime transport, or when conducting business with other companies in the special tax zone. Otherwise, the ordinary rate applied to most goods and services is 7%. Also, Canary Islands Special Zone Entities can be exempt from Capital Transfer Tax and Stamp Duty.
<90% Deduction of Reinvested Profits
The Canary Islands Investment Reserve (RIC) is a major tax incentive program under the Canary Islands Economic and Fiscal Regime (REF), compatible with the Special Tax Zone, which allows for corporations to deduct up to 90% of profits invested in fixed assets, company shares and others.
Join the most competitive tax zone in europe
Over 20 years ago, the European Commission approved the Special Tax Zone, a low taxation framework under the Economic and Fiscal Regime for Canary Islands (REF), with the aim of diversifying, modernizing, and generating economic activity in the southernmost territory of the European Union.
The Canary Islands is not a fiscal paradise – its Tax Regime is fully compliant with the OECD so investors and companies are shielded by European Law.
An unparalleled opportunity awaits for you to exponentially grow your business worldwide while offering you and your team the chance to experience the pleasant lifestyle the Canary Islands has to offer.
The right margin displays some facts and figures of the size and impact of the Canary Islands Special Tax Zone as of 2021.
Join the most competitive fiscal regime in europe
Over 20 years ago, the European Commission approved the Special Zone, a low taxation framework under the Economic and Fiscal Regime for Canary Islands (REF), with the aim of diversifying, modernizing, and generating economic activity in the southernmost territory of the European Union.
The Canary Islands is not a fiscal paradise – its Tax Regime is fully compliant with the OECD so investors and companies are shielded by European Law.
An unparalleled opportunity awaits for you to exponentially grow your business worldwide while offering you and your team the chance to experience the pleasant lifestyle the Canary Islands has to offer.
Below are some facts and figures of the size and impact of the Canary Islands Special Tax Zone as of 2021.
Strategic Advantages
The impactful financial benefits of setting up a company in the Special Zone are paired to additional strategic advantages derived from the privileged geographic location of the Canarian Archipelago. The mild temperatures that reign all year long, the affordable living and its proximity to major cities make it an ideal destination equally for work and leisure.
Below are 4 strategic reasons why the Canary Islands is an excellent corporate base:
Connectivity to Europe, africa & the americas
The archipelago is located a stone’s throw away from booming African economies and with direct flights to over 120 airports worldwide, including:
- Barcelona
- Casablanca
- Dublin
- Frankfurt
- London
- Madrid
- Oslo
- Paris
Ranks for Best Connected Port according to UNCTAD Liner Shipping Connectivity Index (2021)
PORT of las palmas
Access to Skilled Labor & Research Institutions
Access qualified multilingual local graduates, researchers, and professionals trained at many of the educational and scientific institutions available in the Canary Islands, including:
- 5 universities
- 180 vocational schools
- +24 research institutions
Otherwise, if you need professional specialists in the technology sphere, tap into the growing community of over 8,000 digital nomads from all corners of the globe who have recently made the Canaries their home.
Perfect Weather Year-Round
With an average temperature of 21°C all year round and a sub-tropical climate, summers are warm and breezy, and winters are mild and green. With over 3,000 hours of sunshine a year, the Canary Islands is indisputably the sunniest place in Europe, making it ideal for outdoor activities like cycling, hiking, golfing, running, sailing, surfing and many others.
An Affordable High Quality of Life
The Canaries is like a mini-continent in terms of the variety of landscapes, micro-climates and the diversity of its population. It’s a unique region offering an unparalleled opportunity to find a place in which you can truly live your dream lifestyle: next to a luscious green forest, by the ocean, at a volcanic island or at a safe cosmopolitan city. The Canaries has excellent medical services and a large variety of cultural, sports, shopping and culinary options including 8 Michelin star restaurants.
Connectivity to Europe, Africa & The Americas
The archipelago is located a stone’s throw away from booming African economies and with direct flights to over 120 airports worldwide, including: Barcelona, Casablanca, Dublin, Frankfurt, London, Madrid, Oslo, Paris, etc.
4th in Spain
24th in Europe
144th in the World
for best connected port"
ACCESS TO SKILLED LABOR & RESEARCH INSTITUTIONS
Access qualified multilingual local graduates, researchers, and professionals trained at many of the educational and scientific institutions available in the Canary Islands, including:
- 5 universities
- 180 vocational schools
- +24 research institutions
Otherwise, if you need professional specialists in the technology sphere, tap into the growing community of over 8,000 digital nomads from all corners of the globe who have recently made the Canaries their home.
PERFECT WEATHER YEAR-ROUND
With an average temperature of 20°C all year round and a sub-tropical climate, summers are warm and breezy, and winters are mild and green. With over 3,000 hours of sunshine a year, the Canary Islands is indisputably the sunniest place in Europe, making it ideal for outdoor activities like cycling, hiking, golfing, running, sailing, surfing and many others.
AN AFFORDABLE HIGH QUALITY OF LIFE
The Canaries is like a mini-continent in terms of the variety of landscapes, micro-climates and the diversity of its population. It’s a unique region offering an unparalleled opportunity to find a place in which you can truly live your dream lifestyle: next to a luscious green forest, by the ocean, at a volcanic island or at a safe cosmopolitan city with excellent medical services and a wide array of possibilities for: nightlife, Michelin star restaurants, theaters and outdoor shopping malls.
Start Your Journey, Today