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Canary Islands

Incentives in the Canary Islands Economic and Fiscal System (REF in its Spanish acronym)

The Canary Islands has its own REF, which is subordinate to Spanish legislation and fully authorized by the EU. It is therefore an area with very low taxation and thus highly attractive for investment, without being any sort of tax haven. Noteworthy among the main incentives are:

  • The Special Canary Islands Zone (ZEC in its Spanish acronym): 4% Corporate Tax rate (compared to the 30% of the national system). For additional information, see www.zec.org
  • The Reserve for Investments in the Canary Islands (RIC in its Spanish acronym): Up to a 90% reduction in the tax base for the Corporate Tax for undistributed profits
  • Exemption from Property Transfer Tax and Stamp Duty: for a company setting up, expanding or purchasing capital goods
  • Benefits of the General Indirect Canary Islands Tax (IGIC in its Spanish acronym): General 5% rate, compared to 16% VAT
  • Rebates for Production of Tangible Goods: Up to a 50% tax rebate on profits obtained from sale of tangible goods produced in the Canary Islands
  • Deduction for Investments in the Canary Islands: Deduction percentages higher than those of the national system
  • Free-trade Areas: Two (Gran Canaria and Tenerife) of the total of five in Spain. Companies established in the free-trade areas can also benefit from the benefits of the REF as a whole

To see more: www.invertirencanarias.com

Venture capital

The Canary Islands Development Company (SODECAN in its Spanish acronym) supports the expansion of existing companies and the creation of new ones. SODECAN can hold a minority stake in the capital of a company (between 5 and 45%) on a temporary basis until the company or its expansion project has become established, with the period ranging from four to five years in most cases.

Other capital subsidies

Creation, expansion, modernization and transfer of companies; energy savings; import of basic products; inter-island transportation; quality; alternative energies; new technologies; the clothing industry; trade; promotion abroad; computer equipment; communications; tourism; agriculture and livestock. Up to 50%–60%, depending on the business activity, number of jobs created or technological innovation applied.

Regional economic incentives

For creation, expansion, modernization and transfer, up to 40% of the entire subsidizable investment. 

Other Aid

  • For training

Training for unemployed and employed persons. Up to 100% of expenses choosing from among officially recognized bodies.

  • For employment

Doctors, reorganization of work time, disabled unemployed people, hospitality, tourism, construction, groups with special placement difficulties, comp time, freelance and self-employed workers and permanent contracts. 

  • For R&D

Industrial research and development, pre-competitive development, technological demonstration, international programs and applied research (PROFIT Program). Up to 50% of the investment and subsidizable expenses.

Last updated: 09|06|2016

The information on these pages was prepared by each autonomous community

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