© 2019 by Capital Investment Canaries - A MAIROSCRI HOLDINGS, S.L.U Company.

ZEC - Canary Islands Special Zone

Europe's Lowest Onshore Corporate Tax Location

4%

ZEC -

Main Benefits

The Canary Islands have some of the most attractive tax incentives in the European Union, boasting the lowest onshore corporate tax rate of just 4%.

Unlike other jurisdictions in Europe, the Canary Tax Incentives are permanent due to their "Ultra -peripheral" status.

 

The Canary Islands are considered to be at a logistical disadvantage being in Europe's Outermost Regions, therefore, so long as they remain part of Spain The Canary Islands will always enjoy additional fiscal advantages.

An important fact for business owners to consider when planning medium and long term strategy. 

 

 

Capital Investment Canaries has created ZEC Structures for more than 60 companies from Digital, Tech, Renewable Energy & Contact Centre industries, helping clients to raise Capital Investment in excess of €50 million in along the way.

 

ZEC Project Registration

 

To qualify for a ZEC license Capital Investment Canaries creates a business project on behalf of its client incorporating information such as;

 

        1.- Name of the Canary Islands special zone entity

        2.- Legal structure of the entity

        3.- Applicant/s, Equity & Roles

        4.- Proposed notification office

        5.- Fiscal address and headquarters of effective address/domicile (branch)

        7.- Amount and the proposed location of investment

        8.- Number of jobs to be created

        9.- Registration fee guarantee

       10.-Documentation presented with the application.

 

Sections:

 

  1. Description of the economic activities to be undertaken

  2. Accreditation of the feasibility of the project: profit and loss account, three-year balance sheet forecast and financing table

  3. Accreditation of the economic solvency and technical soundness of the project

  4. Accreditation of the ability to compete at an international level in the case of companies planning to carry out economic activities in international markets

  5. Accreditation of the contribution to the economic and social development of the Canary Islands.

 

 

ZEC Qualifying Criteria

1. The company must be a newly created company with its fiscal address and effective place of management within the geographical area of the Canary Islands.

 

2. At least one of the Executive Directors or the Company Secretary/Administrator must be resident in the Canary Islands (A Position often provided by Capital Investment Canaries by way of a Management Service Agreement).

 

3. The Company is required to make an investment within the first 2 years of trading. The investment levels are €100k if located in Tenerife or Gran Canaria and €50k if located on any other island. As part of the accounting exercise, all CapEx and some OpEx expenditures can be allocated to this investment. 

 

4. The ZEC company should have a minimum of 5 employees on the company payroll and working from the Tenerife or Gran Canaria within the first 6 months of registration. Only 3 Employees are required if the company is based on any other island.

 

5. The activity of the ZEC entity must be accepted in the NACE list of activities outlined by the European Commission. 

4% Corporate Tax

Reduce your Corporate Tax Obligation by 80%

Europe's Lowes Onshore Corporate Tax Rate of just 4%.

0% Transfer Tax & Stamp Duty

When acquiring commercial assets with additional net profits derived from the tax savings, you'll enjoy an additional 8-10% saving.

0% Withholding Tax

Enjoy the free movement of funds when repatriating dividends free from utilising Spain Tax Treaty Network

0% VAT

6.5% IGIC

Invoice international clients and other ZEC companies without applying the standard EU VAT Rates.

Local VAT (IGIC) is just 6.5%.