Paradise goes beyond the sea and sun, as many international investors are still surprised to learn when they first come across information about the Canary Islands Special Economic Zone (ZEC). The archipelago has a unique set of fiscal and tax advantages that make this area a particularly attractive place to establish a company. Widely known for its magnificent beaches and natural reserves, the warm Canary Islands are also gaining fame in the colder northern European areas and in North America for something else: as an exceptional place to locate businesses. Owners not only enjoy tax advantages, but can also benefit from the security, climate and natural wealth of Europe's best kept secret.
Among the international companies that have made the Canary Islands their headquarters are many in the audiovisual, animation and video game sectors, as well as others related to cultural industries and, of course, the powerful tourism sector. Due to its geopolitical location as a European enclave close to the African coast, the new industrial sector in the Canary Islands also includes the so-called “blue economy,” dependent on the seas and oceans to drive the generation of wealth, as well as the aerospace and logistics industries.
The EU legal framework, the tax advantages of the ZEC and abundant local talent have also encouraged the establishment of technology companies (software and development) and outsourcing services for different tasks.
Entities registered in the ZEC pay only 4% corporate income tax, well below the 25% going rate in Spain. In addition, transactions between registered entities, as well as the import of goods, are exempt from the Canary Islands General Indirect Tax (IGIC). Companies also benefit from an exemption in the Tax on Patrimonial Transmissions and Documented Legal Acts (ITP-AJD) for the acquisition of goods and services for their activity, corporate operations, and on related documented legal acts.
If you are thinking of moving your business to the Canary Islands to benefit from the advantages of this special tax regime, you will be happy to know that, within the ZEC, there are numerous industrial, residential and infrastructure projects under development, making the area the perfect place to acquire a second home or even a primary residence. This is the story of some of the buyers of our luxury residences at Abama Tenerife: these European and North American businesspeople looking for an advantageous location for their companies ended up buying or building a home here as well.
With the lush surroundings of the Canary Islands' springtime weather meeting tremendous business incentives, apartments or villas in an exclusive serviced golf resort like Abama make for some of the best property for sale in Spain. Our owners have merged their business and personal lives to their greatest advantage.
