5 Reasons UK Business owners are opening EU subsidiaries in the Canary Islands?
In recent months CIC 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 our newest clients chose the Canary Islands as their preferred location to open their EU structures.
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 incentive, 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 boast 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 have 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.