Regardless of Brexit! Why British Business Owners chose the Canaries for Subsidiary Structures?
5 Reasons UK Business owners are opening 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, however, whilst only 10% of business owners are making preemptive provisions for Brexit most business owners are waiting to see how the negotiations play out.
Many British business owners are realising the EU offers them significant fiscal incentives to incorporate a trading entity in the EU. This entity can be a direct subsidiary of their UK corporate structures, optimizing their tax position in the single market, maximizing dividends, should they wish to distribute back to the UK, whilst enabling them a platform to trade across the EU in the same time zone.
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 or subsidiaries.
1) Transparent & Onshore
Being part of Spain, and therefore the EU, businesses can trade from the Canaries with confidence and complete transparency. They enjoy a secure political, financial, and legal framework providing investors with certainty.
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 80% 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, and, expand their commercial horizons internationally.
4) Connectivity & Time Zone
Being one of the few places in the EU on the same time zone as London, The Canaries certainly has an advantage. Combine this with affordable daily connecting flights to more than 180 destinations just 3-4 hours from major European cities, 460 daily UK flights and 350 German Flights, it’s easy to assess the strategic advantage the Canaries has as 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:
Tel: +34 922 280 228
Mob: +34 674 136 977