The Canary Islands Special Zone (ZEC) is a low tax zone created within the framework of the Canary Islands Economic and Tax Regime (REF) that was authorized by the European Commission in January 2000 and it is regulated in the Law number 19/94 of the 6th of July, 1994.

Any business or branch which intends to carry out an industrial, commercial or service activity included in the list of authorized activities can be established within the ZEC and may benefit from these tax bonuses:

• 4% corporate tax rate, down from average European rate of 20%.
• No withholding of dividends or interests paid to foreign owners/parent companies.
• No V.A.T for the import of goods or the utter transfer of goods within the ZEC.
• Exemption from other direct taxes, like that applicable to the acquisition of goods and rights, corporate operations (increase on capital, etc..) and legal acts.

Easily the best tax regime in Europe, the ZEC is placed in a territory with first-tier ports and airports, excellent IT infrastructure, it is no surprise that has become a hub for companies and branches that wish to establish themselves here and produce and service Europe and Africa. The fact that Canary Islands boasts one of the best climates and quality of life in Europe is a surplus for a young, cosmopolitan workforce.

Tell us your business project and we will guide you through the legal path to enjoying this outstanding tax regime.