Tenerife counts with a low tax regime namely the “Zona Especial Canaria”(ZEC – Canary Islands Special Zone). This fiscal incentive was authorised by the European Commission in the year 2000, in order to promote the social and economic development of the archipelago.
The most attractive advantage is the low corporate tax rate of 4%, instead of the 25%, applied in the rest of Spain. 50-45% tax incentives are compatible with 4% Corporate Income Tax. There are other benefits and exemptions in the Canary Islands General Indirect Tax (IGIC – the local equivalent of the Value Added Tax), in the Transfer Tax and Stamp Duty and in the Income Tax on Nonresident (IRNR).
The requirements to join the ZEC are:
• Create a new company.
• Minimum investment of 100,000 € (50,000 in the non capital islands) in fixed assets related to the activity, within the first two years from the time of its registration in the ZEC. Most of the activities related to the audiovisual sector will be exempted from this requirement as long as 6 jobs are created.
• Create at least five jobs (three in the non capital islands) within the six months following the time of the registration, and maintain this average during the time that the benefits are enjoyed.
• At least one of the directors must reside in the Canary Islands.
• Operate in any one of the sectors listed in the authorized activities (the audiovisual sector is included).
For more information visit www.zec.org, send an email to Sabita Jagtani firstname.lastname@example.org or call the telephone number +34 922 298010.