5 Qualifying Criteria for Canary Islands ZEC
How to qualify for the EU's Lowest Onshore Corporate Tax Incentives
The Canary Islands has a unique onshore tax system providing excellent conditions to foster investment and trade across the EU.
This system is included on a permanent basis within the EU Legal Framework through Art 299.2 of the Treaty on European Union, offering exceptional advantages to both investors and companies.
What is the Canary Islands ZEC?#CanaryIslandsZEC
The ZEC is a low tax zone created within the framework of the Canary Islands Economic and Tax Regime (REF) for the promotion of the economic and social development of the Islands and to diversify their production structure.
ZEC was authorized by the European Commission in January 2000 and it is regulated in the Law number 19/94 of the 6th of July, 1994.
Companies accepted by the ZEC Commission benefit from a 4% Corporate Tax Rate, the lowest in the European Union.
What is the Qualifying Criteria for Canary Islands ZEC Companies?
1. The business must be a newly-created entity, or branch, with its registered address and effective place of management within the geographical area of the ZEC. Present a full business project as part of the official application, to the ZEC Commission.
2. Have at least one of the Directors must reside in the Canary Islands” (Capital Investment Canaries often fulfills this role for its larger clients).
3. It must make a minimum investment of 100,000 euros (in Gran Canaria or Tenerife) or 50,000 euros (in the case of La Gomera, El Hierro, La Palma, Fuerteventura or Lanzarote) in fixed assets related to the activity within the first “Two Years” following its registration. This investment can be covered through CapEx contributions as part of an accounting exercise.
4. Create a minimum of five jobs (in Gran Canaria or Tenerife) or three (in the other islands) during the first six months following its registration. This average must be maintained during the time that the benefits are enjoyed.
5. Having a company purpose matching the authorized activities, It is necessary to conduct activities that are permitted in the ZEC. Available online at:
Any entity or branch which intends to carry out an industrial, commercial or service activity included in the list of authorized can set up in the Islands. ZEC supports a broad range of activities both in the industry, service and wholesale sectors. However, some sectors, are highlighted because they constitute relevant business niches for potential investors who contribute to the modernization of the production and commercial mechanisms in the Islands.
For further information contact;
Office Canary Islands: +34 922 280 228
Office Mobile: +34 674 136 977