The ‘Canary Smile’ a hook for Entrepreneurs, Investors & Tourists!
When I interviewed Ash Hotel President, Jorge Marichal, in 2011, I left that meeting with a renewed feeling of certainty to match the confidence I had that the Canaries would not only be a market leader in the Tourism Industry, but we could realisethe ambition to make the Islands a commercial investment hub connecting three continents.
For me, Jorge symbolised a new era in Canary commerce and politics! Young, dynamic, successful, and international in his approach to business. Ashotels at the time was responsible, as an association, for the interests of 219 members hotels consisting of, covering the four islands of the Province of Santa Cruz,”.
“This association was responsible for in excess of 150,000 beds, and rapidly growing, as well as catering for visitors to the islands on a daily basis.
Seven years on the Canaries has broken not just tourism records but commercial records also.
By diversifying, and diligent external promotion of the islands fiscal benefits and home grown talent, the Canary Islands has issued more than 600 licenses to international businesses establishing a base on the islands through the ZEC Initiative. The initiative offers international businesses to trade internationally, particularly across the EU, via an Onshore, European Commission backed, corporate tax incentive whereby they pay just 4%.
When I asked Jorge at the time what would be one of the key components to realising this vision, I’ll never forget him coining the phrase, “It’ll be our Canary Smile Christopher”! Something which I’ve come to adore myself over the years. I’m convinced that he didn’t just mean the “Canary Smile” but actually the warmth, friendliness and generosity for which the Canary people are famous.
This phrase is further endorsed to me when speaking to the Owners, Investors, and Employees of the many companies my business, Capital Investment Consultants & Capital Investment Canaries” have brought to the islands, they tell me the same. The fiscal and Commercial benefits are unrivalled, however, what people tell me they enjoy most is the equilibrium between business and lifestyle is just as valuable.
Coming from his families construction background and later CEO of Marylanza Hotel, in Los Cristianos, I’m convinced Jorge knew what it was going to take.
I’m a firm believer that we haven’t fulfilled the full potential of that Canary Vision just yet. Today the Canaries boast more than 400 weekly flights to the UK alone, and is becoming the research-and-development zone for innovative technologies, in particular Green and ECO projects. Through institutions like ITER.
Capital Investment Consultants has closed in excess of €10 million investment for its clients in these industries andthrough our creative corporate structure’s we’ve enabled them to internationalise their companies in Africa, Asia, Europe and the Americas.
With continued public investment into world class communications, infrastructure and travel connections, it is easy to see why the Canary Islands is a Commercial Paradise and not a Fiscal one!!!
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Why Canary Islands is an Entrepreneurial Paradise, and not a Fiscal Paradise!
The Guardian News published an article ranking Santa Cruz de Tenerife in it’s top 5 places in the world to live! But why has this popular tourist destination ranked so highly with business highflyers, and what secrets does it really have to offer?
Christopher Pennington, Founding member of CIC group was recently interviewed by another publication for British Airways’ inflight magazine as to why the Canary Islands have such a gravitational pull on industry and business leaders, with more than 600 international businesses recently establishing a base there.
“The Canaries have many reasons why they’re becoming a key place of influence for fast growing and profitable businesses. Being on the same timezone as London yet located withing the Eurozone is a key advantage, the islands have direct daily flights to more than 180 destinations and more than 400 weekly flights direct to the UK. The Corporate Tax Rate for International businesses in the Canaries is just 4% through the Onshore EU Tax Incentive (ZEC) which means fast growing companies reduce their corporate tax bill by 80% in sone cases.
Cost of living in the Canaries is seriously lower than elsewhere in Europe, standard of living is high which is why companies find it easy to attract top talent to the islands as well as access to the educated, young, bi-lingual workforce already available.
Having helped US companies to establish a management centre to conduct EU operations along with numerous UK companies to avoid Brexit uncertainty by establishing and EU subsidiary and maximise net profits, it’s clear to see this trend continuing for many years to come”.
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US & UK Companies, Choose Canary Islands for
EU & West Africa Base!
As an emerging market, West Africa offers many opportunities for established Western and Asian companies.
In West Africa alone there’s a potential workforce of 350 million people, the population has increased 5 fold since 1950 and the United Nations has ranked West Africa as the World’s Fastest growing region!
During the past 10 years the Canary Islands, (Highly Evolved Spanish Islands located approx. 250km from Morocco) have become the perfect location for both outward investing African companies wanting to enter the global markets via a European corporate structure, and global companies wanting to enter the African market.
The Canary Islands have had a gravitational pull on European tourists since the 1970’s, due to their ever developing infrastructure, and stable financial, political and legal European framework. Actually if you set foot in the Islands Capitals of Santa Cruz or Las Palmas, today you’d be forgiven for thinking you’re were in any European city.
Here’s the 3 main reasons why international companies, like Kinrosschose the Canary Islands as their preferred location in which to manage and grow their African activities!
- Europe’s Lowest Onshore Corporate Tax Location: Due to the proximity to their parent country of Spain, the Canary Islands are protected by a permanent legal status known as “Ultra Peripheral”. This means, unlike other locations in Europe that boast tax incentives, the Canary incentives will always be in place, providing long term security for investors. The corporate tax rate is just 4% through the ZEC incentive. Additionally they have another half dozen other tax incentives to benefit a wide spectrum of companies and investors. The Canary Tax Incentives are authorized by the European Commission and fully regulated by the Spanish Governments Tax Office, “Hacienda”.
- Access to Talent: The Canaries have 2 universities producing graduates to European standards, equally the general population is of a European mentality, and often, bi-lingual due to decade of tourism on the islands. Capital Investment Consultants has successfully supported many international companies to establish their corporate structure in the Canaries and recruit staff locally and internationally. Our biggest success was recruiting 47 qualified engineers, 4 of whom PhD’s, from the local universities and abroad, some of whom left Apple in Ireland to join the team!
Lifestyle: There is a magic about the Canary Islands and in particular the Capital Cities of the two provinces provide the perfect equilibrium between work and leisure. The low cost yet high standard of living, European culture, secure legal, financial and social systems make them amongst the most desirable European cities to live and workas stated by “The Guardian UK”. The Canaries is a place that people are gravitating to. Excellent medical care, education, connectivity (400 weekly flights to the UK alone) make this really a Commercial Paradise, not a fiscal one.
To find our more or register for one of Capital Investment Consultants CommercialDiscovery Visits, please contact;
Mobile: +34 674 136 977
UK Office: +44 (0) 203 966 0035
Atari Founder Nolan Bushnell…
Why Global Digital Companies are placing their International Offices here?
Since 2010, CIC has advocated the Canary Islands as the perfect location to position European and international, operations. Today, companies are utilizing the Canaries for global trade and expansion, so much so in June 2015 CIC relocated the R&D operation of a Silicon Valley to Santa Cruz de Tenerife.
By coincidence, a few months later, Atari Founder, Nolan Bushnell, spoke at a conference on the Spanish Islands stating “If I were to set up a Tech Company now, I would choose the Canaries over Silicon Valley”!
Shared below are the 5 key reasons why online, digital, and tech companies have chosen the Canary Islands as their preferred location, becoming home to international companies for their back offices, customer contact support, and commercial expansion operations.
The Canary Islands is part of Spain meaning they benefit from the European Union’s political and legal framework. Spain’s economy is the 5thlargest in the EU and 14thglobally, providing Investors and Entrepreneurs with confidence when growing a company.
Access to talent
The Canary Islands has two internationally recognised universities, a large young European educated workforce with many people speaking in both Castellano Spanish & English.
Not many people know the Canary Islands actually have the lowest onshore corporate tax rate in Europe, just 4% for qualifying companies. Due to the extensive Tax Treaty network Spain has with other nations, repatriated dividends to other onshore jurisdictions are free from Withholding Tax. VAT, when invoicing within the Canaries, is just 7%, in many cases no VAT is applied when invoicing internationally.
Located approximately 1000 miles south of Southern Spain the Canaries have always been a logistical place of importance. They are the place where Christopher Columbus set sail to discover the New World, and in 2005 President Bill Clinton announced them as a Tri-Continental Platform connecting the Americas, Europe & Africa. With more than 400 weekly flights to the UK, and hundreds of weekly flights to other European Cities, it’s easy to see why they’re a Key European Investment Hub.
As you might imagine from the logistical position, the Canaries are blessed with year round spring weather. Known to the Romans as the “Fortunate Islands” since the 70’s tourism figures have risen to 13 million per year. The modern cosmopolitan culture in the Canaries consists of Al Fresco dining, outdoor sports and activities, additionally the cost of living and employment is considerably lower than mainland Europe, some estimations state 35-40% lower. This leads to a generally happier, more efficient and productive workforce.
To find out how your business can qualify for the Canary Islands ZEC Tax Incentive contact;
Tel: +34 674 136 977
With high profile cases of some of the world’s largest companies being scrutinised for what has been described as “Aggressive Tax Structures” it’s easy to understand why the simple mention of a “Tax Incentive” is met with fierce opposition from parts of society.
We’ve all heard the phrases… “Tax Dodgers” “Tax Cheats” “Elitists” etc.
Whilst for some companies those insults are probably valid, generally there’s a complete misunderstanding between Tax Evasion/Avoidance, and Tax Incentives.
Companies, and individuals, who set up corporate entities in jurisdictions where they do not live, or carry out commercial activity are what’s considered Tax Evasion and Avoidance, notice we don’t separate between the two, why? Because they’re at the same end of the scale, only a thin line divides them. Historically, Tax Avoidance/Evaision schemes involve inactive shell companies, not engaged in real business activity, and established for the sole purpose of taking tax revenues away from governments and society as a whole! This clearly creates a Win Lose scenario, and no matter how “Legal” it maybe, there’s clearly a deeper ethical issue at the forefront of peoples minds.
Tax Incentives, on the other hand, are at the complete opposite end of the spectrum. Not only are they legal, but transparent, tax is actually paid, and the incentives are agreed and accepted by governments and commissions. These incentives provide both social and economic development in addition to the obvious benefit to the corporate entity, clearly a Win Win scenario!
It’s exactly this second scenario why The Canary Islands ARE NOT a Tax Haven!!!
The Canary Islands proudly boasts the lowest “Onshore” Corporate Tax Rate in Europe, just 4%. An incentive known as the ZEC, (Zona Especial Canarias) or Canary Special Zone.
Smaller Online Business Owners, Consultants and Coaches take advantage of the RIC, “Reserve Investment in Canary Islands” which allows a 90% tax break on profits reinvested meaning a corporate tax base rate around 3%.
Why do these “Tax Incentives” differentiate the Canaries from “Tax Heavens”? Simply because they’re tied to economic diversity, employment or investment.
The Ethical Argument
It’s easy to argue Tax Incentives in other jurisdictions are unethical, at the very least they’re abused. When you can open a company without actually conducting actual business from that country, have no tangible physical presence in terms of employees or actual services being rendered, it’s understandable why people have an issue with the ethics surrounding offshore. The Canary Islands Tax Incentives, however, are completely unique due to the fact they’re onshore and linked to both social and economic requirements.
ZEC Companies must adhere to the qulifying criteria, which is directly linked to investment and exployment, making it the most trasparent Tax Incentive in the EU, giving certainty to the business owners.
Why does the ZEC exist?
The ZEC exisits due to the logistical position of the Canaary Islands, being so far away from its Mother Country, Spain. The Canaries, unlike Malta and Cyprus, has a special legal status, “Ultra Peripheral” protecting its fiscal incentives.
The main reason the ZEC exists is to create Social and Economic diversity by attracting international business to the islands. During the crisis unemployment rate in Canary Youth exceeded 33% the highest in Europe, yet they have a wealth of bi-lingual, university educated, young talent. When trying to argue Tax Incentives are unfair should remember when an area of your community (In this case the EU) is experiencing difficulty, it’s supported with funding from Tax revenues from member states!!!
By issuing Tax Incentives, enabling a region to self-sustain and develop itself, ultimately means less support is needed from the EU, allowing tax revenues from other members to be put to better use elsewhere!
Every company operating in the Canary Islands is subject to the normal statutory reporting in Spain, in fact, extra attention is paid to those companies receiving the tax benefit to ensure they’re in compliance with the rules agreed, not just by the Canary Government, but the Spanish Government and the European Commission!
This ensures people cannot cheat the system, more importantly it provides additional comfort and security for the owners of companies utilising the benefit. Real Tax Incentives for Real Businesses. No Shell Companies and No need to hide your revenue, just 4% Corporate Tax clean & transparent, plus 0% Whithholding on Dividends when repatriated to a stakeholder based onshore. Find out more…
In recent months we’ve has seen an increase of British Business Owners opening company structures in the EU, largely due to the uncertainty of the Brexit negotiations. Many business owners have concerns as to how they can protect revenues by continuing to service EU customers, as well as those desiring to grow their client base further inside the single market.
With many locations to choose from, below are some of the reasons why clients are choosing the Canary Islands as their preferred location to trade across the EU.
1) Transparent & Onshore
Being part of Spain and the EU, businesses can trade from the Canaries with confidence and complete transparency. They enjoy a secure political and financial framework and certainty that their structure is ethically sound.
2) Low Onshore Corporate Tax Rates;
The Canaries enjoys special fiscal treatment with the full authority from the European Commission. For qualifying companies there’s a low Corporate Tax Rate of just 4%, VAT on the islands is 7% and for High Earners there’s up to a 90% tax break through a reinvestment incentives, reducing the effective tax rate to as low as 3% in some cases.
3) Base in the EU
Famous for its year round constant spring temperature the Canaries is one of the world’s most popular tourist destinations, however, since the year 2000 the main commercial cities of Santa Cruz de Tenerife and Las Palmas de Gran Canaria have attracted a mass of companies both small and large, the most recognizable being, AtoS, British American Tabaco, Rolls Royce and ENSCO. Offering the perfect platform to service clients across the continent in the single currency, it’s the ideal way to overcome Brexit uncertainties.
4) Connectivity & Time Zone
Being one of the few places in the EU on the same time zone as London certainly has its advantages, combine this with affordable daily connecting flights to more than 180 destinations just 3-4 hours from major European cities, the commercial growth looks certain to continue.
5) Standard of Living
The Canaries and Spain boasts Excellent Healthcare, ranking higher than both the UK and the US on the WHO league table. The cost of living is considerably lower than other countries which has seen many Expats relocate either completely or in part to the islands, running their businesses remotely. As the online trend continues to grow, more entrepreneurs and business owners are spending more time in the Canaries as part of their retirement and secession planning.
For more information contact:
M: +34 674 136 977,
New Investments & Grants for SME’s released
Capital Investment Consultants, its subsidiaries and associate partners have launched their Client Funding Lines for 2018.
Our fund is made of a number of funding avenues, namely;
- Our Profitable Companies offering Private Equity
- Our Private VC Investors (already committed in excess of 10m)
- Our Public funding grans and subsidies
Our funding lines are available for existing clients, however, our public funding lines are open to, existing clients and new clients of CIC.
CIC has a proven track record in securing Private Equity, Angel Investment, and Growth Funding for its clients, typically in combination with one of our IP Positioning or EU Tax Incentives Products. (10.5 million funded since 2015).
Who Can Apply?
We’re offering the funding lines to the following companies;
|Company Profile||Investment Range|
|Entrepreneur Start-Up (Proven Skillset)||€27,500 – €55,000|
|Renewable Energy Start-Up||€45,000 – €250,000|
|Renewable Energy Disruptive Tech||€250,000 – €1,500.000|
|Companies with a proven trading record||€200,000 – €1,000.000|
|AI, Technologies, Online Businesses||€250,000 – €2,000.000|
|R & D of Disruptive Technology||€500,000 – €5,000.000|
|Companies with proven capacity for global reach, or, profitable track record.||€5,000.000+|
For more information regarding repayment or equity options please submit your executive summary accompanies with a link to your Video Pitch to the email below. Your video pitch doesn’t have to be professionally produced, we’re looking for originality and to assess your ability to pitch your business.
The initial screening process is by the CIC board followed by presentations to our private investors.
For information about our products or how to become a client please visit www.capitalinvestmentcanaries.com
For more information about our Private Equity Funding platforms please visit
WHAT IS THE CARNIVAL OF SANTA CRUZ DE TENERIFE?
The Carnival of Santa Cruz de Tenerife is held in January or February every year. This year the party starts on February 7th and carries on for almost the whole month. The theme for 2018 is ‘fantasy’, which means feathers, sequins and loads of sparkle.
There are different events held across the month, in Puerto de la Cruz, Santa Cruz and Güímar. You can expect live music, open-air concerts, parades and a giant paper sardine carried through the streets! Yep – the ‘burial of the sardine’ signifies the first day of Lent, and involves locals dressed in black carrying a huge sardine effigy through the streets and then burning it. You’ll be pleased to hear that the rest of the events are mainly dedicated to dance, South American music and fabulous costumes – it’s just one big street party.
Here’s what you really shouldn’t miss…
Wednesday, February 7th, 2018 – Election of the Carnival Queen
Friday, February 9th, 2018 – Carnival Opening Parade
Tuesday, February 13th, 2018 – Main Parade
Wednesday, February 14th, 2018 – Burial of the Sardine
Saturday, February 17th, 2018 – Daytime Carnival
Sunday, February 18th, 2018 – Parade of Vintage Cars
Puerto de la Cruz
Thursday, February 8th, 2018 – Election of the Carnival Queen
Saturday, February 10th, 2018 – Proclamatory Parade
Wednesday, February 14th, 2018 – Burial of the Sardine
Friday, February 16th, 2018 – Men’s Marathon in High Heels
Saturday, February 17th, 2018 – Main Parade
Friday, February 16th, 2018 – Las Burras de Güímar
HOW DID THE CARNIVAL OF SANTA CRUZ DE TENERIFE BEGIN?
Tenerife’s renowned event has been going on for a long time – since the first European settlement back in the 15th century, to be exact. It started off as an outdoor festival with live bands playing traditional South American music, and has slowly descended into a spectacle of colour, costumes, parades and street parties. In 1987, Guinness World Records officially declared the carnival as the largest outdoor concert in the world. And, ever since then, it’s had a different theme every year, ranging from space and horror to Ancient Egypt and the 80s. Revellers go all out with their costumes too, and plan them months in advance.
WHAT ELSE CAN I DO IN TENERIFE?
If you love lazing on the beach, head to the white sand stretches in Playa da las Americas and Costa Adeje, where you can top up your tan and get stuck into the watersports. Or, if you prefer getting out and about and exploring natural landscapes, head to Mount Teide National Park – home to the third largest volcano in the world – where you’ll find other-worldly landscapes covered in solidified lava, craters and cacti. You can explore hiking trails or take a cable car to the top and enjoy the impressive views over the island. Head there at night and you’ll see it’s an amazing spot for stargazing.
And that’s not all. There are also plenty of top shopping spots, big clubs and waterparks to hit, including Siam Park – a giant Thai-themed waterpark which lines up a wave pool, a vertical drop slide for those adrenaline-junkies, and the world’s longest lazy river.
WHERE CAN I STAY?
The wallet-friendly Be Live Experience Playa la Arena is within easy distance of the carnival, and right next to a volcanic black-sand beach. It also boasts two pools and loads of activities on the agenda to keep you busy when you’re not partying.
If you’re after something a little more upmarket, pick the Hotel RIU Garoe from our Platinum collection. This place is set among gorgeous landscaped gardens and features a pretty pool scene and a beauty centre to help you get costume-ready.
Ready for your carnival experience?
How Tenerife & Gran Canaria could be your company’s solution to trading with the EU after BREXIT? Click Here…
Author: Selina Akhtar
Many clients have been researching potential locations to open an office within the EU in preparation for the BREXIT results.
Uncertainty over the United Kingdoms relationship with the EU post-BREXIT has caused concern for business owners and investors alike.
Equally, BREXIT, like most situations, isn’t without its silver lining. Many business owners are realising the full extent of the opportunities enabled to them by having a Corporate Structure in the European Union.
The Canary Islands offers BREXIT business owners the opportunity to own a company in the EU zone and access Onshore Tax Incentives fully authorised by the European Commission.
The Canary Islands Tax Incentives, are part of a permanent “Ultra Peripheral Regions” status unlike those of Cyprus, Malta, and other EU locations. What this means is, due to the distance between the Canaries and their parent country “Spain” they provide a more “Secure and Stable” longer-term option when considering where to position your business. Specifically, both Investors and Business Owners alike can position their businesses in the Canary Islands enjoying the following;
- Corporate Tax Rates a low as 2.5 – 4%
- Invoice EU clients
- Trade in the Euro without need for currency transfers
- Freedom of movement of funds due to onshore status
- In certain cases, exemption from withholding tax
- No double taxation due to bi-lateral agreements
- Exemptions on Stamp Duty and Transfer Tax
- VAT rate of just 7% in the EU
More importantly, SME owners are able to transparently, retain profits, build equity value and responsibly prepare for an eventual exit enjoying a much higher valuation price. They’re advantages to having a base both inside and outside the EU, clearly, the Canary Islands have a unique offering.
For more information, please contact. Rosana Mesa M: +34 608 291 189 or Email: email@example.com