Europe's Best Kept Business Secret... Canary Island Tax Incentives
Why Canary Islands?
More famous for its thriving tourism economy, most people are completely unaware that the Canary Islands have some of the most advantageous onshore tax incentives in Europe and is currently Europe’s lowest Corporate Tax Location!
The Canary Islands are part of the European Union by default through its relationship with Spain. The Canaries are not a Spanish Overseas Territory, they’re an Autonomous Community and therefore considered an actual part of Spain. It is for exactly this reason the Canaries enjoys onshore tax incentives to compensate for the logistical distance from the rest of the country. The Canaries is protected by the European Commission “Ultra Peripheral Outer Most Regions Status” which means that unlike temporary tax incentives that sovereign nations enjoy, like Malta, Cyprus, Luxemburg, which can be taken away at any time, The Canaries will always enjoy a fiscally beneficial regime.
The “Canary Islands Tax Benefits” are for what is known as the REF, Fiscal and Economic Regime. The benefits have been enhanced every 7 years by direct dialogue with the European Commission and the Spanish Governments Ministry for Tax and Economy (Hacienda).
This location has, the same time zone as the UK, Euro currency, English is widely spoken, plus daily direct flight to many EU cities. There’s a young, educated, bilingual workforce, but perhaps the biggest secret is… It boasts the Lowest Onshore Corporate Tax Rate in Europe, just 4%!!!
Where is it…?
Despite being hugely popular with Nomads and Digital Entrepreneurs the Canaries are being taken more seriously by corporates, either seeking a base in the EU, or using it as a base to expand outside of Europe, particularly those interested in the African market.
Prolific for branding themselves as a year-round paradise for tourists, The Canaries have seen more than 400 companies register for their special tax incentive since 2000. Basing themselves away from the tourist culture, they tend to reside in the Cities of Las Palmas de Gran Canaria and Santa Cruz de Tenerife.
If you’re asking yourself why you haven’t heard of these tax incentives before, it’s largely because they're legally backed “Onshore EU Tax Locations” and unlike the "seedy" offshore tax havens, that so often grab the headlines, onshore legal and transparent incentives just aren't as interesting!
“CIC has helped small 3 to 5 people entrepreneurial businesses, to 50+ people companies, establish a base for international expansion. Business Owners benefit from our unique understanding of how to best apply credible EU Tax Incentives like the ZEC (Zona Especial Canarias).
One huge draw being, companies remain onshore! They enjoy an 80% reduction in corporate tax, from 20% to 4%, and due to Spain’s expansive network of international tax treaties, there’s no need to hide profits! Any experienced CFO knows these components allow them to enjoy the full and unrestricted movement of funds and dividends, free from withholding tax.
Despite being hugely popular with Nomads and Digital Entrepreneurs the Canaries are being taken more seriously by corporations, either seeking a base in the EU or using it as a base to expand outside of Europe, particularly those interested in the African market. Palmas de Gran Canaria and Santa Cruz de Tenerife.
Equally, due to the diversity of the islands, combined with the fiscal incentives, some of our more entrepreneurial clients simply base themselves here for lifestyle reasons”.
Find out more…
UK Office: +44 (0) 7931 384 374
EU Office: +34 674 136 977