Tax Incentives
Competition in the global market means companies must exploit any opportunity for growth. That´s why having a competitive and totally transparent TAX environment is first-rate strategic leverage. The Canary Islands are already home to companies from around the world that are maximizing their opportunities to grow thanks to
the best fiscal incentives.
ZEC- Special Canary Zone
ZEC entities are subject to the 4% Corporate Income Tax, which is applied to the max income tax,depending on the number of working places created within ZEC activity.
- Double Taxation Agreements, Parent-Subsidiary Directive and Income Tax Non-resident (IRNR)
- ZEC Entities are eligible for agreements which avoid double taxation, signed by Spain.
- ZEC Entities are eligible for the Parent-Subsidiary Directive of the European Union.Dividends paid by ZEC subsidiaries to parent companies resident in another EU country are exempt from withholding.
- ZEC and come from operations within geographical area of ZEC.
- Exempt from VAT taxation
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Detailed List
RIC- Сanary investment reserve
This fiscal incentive allows a 90% reduction in the taxable base of retained earnings (Beneficios No Distribuidos) for corporate tax at the amount that companies contribute to the Canary Investment Reserve.
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- Initial investments:
- the acquisition of new assets of tangible or intangible assets.
- the creation of jobs.
- the subscription of shares or participations.
- The deadline for RIC materialization:3 years
- Investment maintenance period: 5 years
- Incompatible: used assets and land
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Income and Corporate Tax
- - Name: Corporate Income Tax [Impuesto sobre Sociedades]
- - General rate: 25%
- Tax on the income of resident individuals
- - Name: Personal Income Tax
- - Rate: (i) general rate: 19% to 45%; (ii) savings income rate: 19% to 23%
- Tax on the income of non-resident individuals and entities
- - Name: Non-Resident Income Tax - Rate: (i) general: 24%; (ii) dividends: 19%; (iii) interest: 19%; (iv) royalties: 24%.
- Value Added Tax [Impuesto sobre el Valor Añadido] (“VAT”)
- - General rate: 21%
- Transfer Tax:
- -Tax rates: 2% to 11%, depending on the autonomous region
- Corporate Transactions Tax:
- -Tax rate: 1% of the value of the goods and services returned to shareholders.
- Stamp Duty:
- -Tax rate: in general, 0.5% to 2.5% of the value of the documented transaction in the public deed (depending on the autonomous region where the transaction is carried out).
Feel free to contact us
Location: Av. Los Abrigos, 32. Los Abrigos.
Santa Cruz de Tenerife. 38618
Contacts:
Phone: +34 663 844819
Mobile: +34 671 616 456
E-mail: mail@tenerifeinvest.info