Fiscal and Economic Systems in the Canary Islands: The Benefits of ZEC and REF
The Canary Islands offer a distinctive fiscal environment through the Canary Islands Special Zone (ZEC) and the Economic and Fiscal Regime (REF). These systems together provide one of the most attractive business frameworks in Europe, particularly for international companies looking to expand into European, African, or American markets. With significant tax reductions and logistical advantages, the Canary Islands present a compelling opportunity for businesses.
Key Advantages:
- 4% Corporate Tax Rate: Companies operating within the ZEC benefit from one of the lowest corporate tax rates in Europe, which can significantly enhance profitability across sectors like manufacturing, services, and innovation.
- Investment and R&D Incentives: The REF provides extra tax incentives for businesses involved in research and development, allowing them to reinvest in growth while reducing their tax liabilities.
- No VAT, but IGIC: Instead of Spain’s 21% VAT, the Canary Islands apply a lower indirect tax known as IGIC, set at just 7%, helping businesses to operate more cost-effectively.
- Access to Global Markets: Strategically located, the Canary Islands offer easy access to European, African, and American markets, making them a prime choice for logistics, export, and service-oriented businesses.
At LIN, we have access to a network of local experts across Lanzarote and the other Canary Islands. One of our trusted contacts for establishing and managing ZEC entities is EBF Consulting, based in Puerto del Carmen.
Contact us at LIN to get in touch with EBF Consulting for more details on ZEC benefits and requirements.