Move your business to low tax Gran Canaria (ZEC)
Gran Canaria and the Canary Islands offer one of the most generous business tax regimes in Europe including a corporate tax rate of just 4%.
This is due to the Canary Islands Special Zone (ZEC): a low tax zone authorized by the European Commission (EC) that has been in existence since 2000 and was expanded in January 2015 with a significant increase in the list of activities that fall under its umbrella, and an extension of the geographical area covered to the whole of the Canary Islands (previously it was restricted only to some determined industrial zones).
The major benefits of the ZEC are:
- Corporate income tax of 4% (compared to European rates in the range of 25-30%)
- Exemption from Property Transfer Tax and Stamp Duty
- Exemption from the Canary Islands General Indirect Tax (IGIC): The equivalent of VAT and currently 7%.
- ZEC Entities qualify for double taxation treaties signed by Spain.
These benefits are available to companies that fulfill the following criteria in Gran Canaria:
- Have an office and management based in the Canary Islands
- Have a company administrator resident in the Canary Islands.
- Invest a minimum of €100,000 Euros in fixed assets related to business activities within the first two years.
- Create five jobs within six months of registration and maintain them while receiving ZEC benefits.
- Be a business that is on the approved list of business types.
For entrepreneurs with the flexibility to move their business the low-tax conditions in the Canaries are a huge opportunity: You could move to Gran Canaria, with its excellent transport and trade links to Europe and fantastic lifestyle, and save a fortune in tax.
The ZEC is only one of the tax and fiscal benefits of setting up a business or division in Gran Canaria. See here for the full list.
To enquire about moving your business to Gran Canaria, contact the official Invest in Gran Canaria website.