The best tax system in the EU, with a 4% Corporate Income Tax Rate

As an EU outermost region, the Canary Islands have an Economic and Tax System (REF) of their own, fully approved by the EU, which applies double taxation conventions and fiscal transparency.

Corporate Income Tax Rate
4%

The Economic and Tax System offers incentives to those that establish and develop their businesses in the Canary Islands.

As an EU outermost region, the Canary Islands have an Economic and Tax System of their own, fully approved by the EU, which fulfills all the requirements of international fiscal transparency. The Economic and Tax System (Canary Islands REF) not only provides the possibility of benefiting from a reduced 4% Corporation Tax, among other tax incentives, but also takes up the conventions for the avoidance of double taxation signed by Spain

The Economic and Tax System offers incentives to those that establish and develop their businesses in the Canary Islands.

Pay lower Corporation Tax Rates
  • 4% fixed Corporate Income Tax Rate for ZEC companies
  • Reduction of up to 90% of non-distributed net profit from taxable base (RIC)
  • 50% allowances for production of tangible assets
  • Tax credits for investments in strategic sectors ara profitable compared to the rest of the Spanish territory
Multiple Tax Exemptions in direct taxation
  • General rate of Canarian VAT (IGIC): 7%
  • For forming a company
  • For the increase of capital
  • For the acquisition of investment property
Settling in a Free Trade Zone
  • Economic advantages for import, export and inward processing of goods
download pdf:Tax Incentives