Canary Islands Offshore
The Canary Islands enjoys one of the highest per capita incomes in the world, nearly equal to that of the US. Its economy is primarily based on providing financial services for international business and luxury facilities for tourists.
If you would like to open a bank account in the Canary Islands or would like to form an offshore company here, please contact us.
The Special Economic Zone (ZEC)
The Canary Islands Special Zone has been created within the fiscal and economic regime of the Canary Islands for the purpose of encouraging the economic and social development of the islands and the diversification of their manufacturing and service sectors.
The ZEC was initially The Canary Islands Special Zone authorised by the European Commission in January 2000.
In early 2006, the Department of Economic Affairs and Finance of the Canary Islands Government suggested the introduction of improvements to the Canary Islands Economic and Fiscal Regime, including the extension of the time frame of the low tax zone beyond 2008 of 25 years for companies in the service sector and 50 years for companies operating in the industrial sector.
In addition, a suggestion has been made for solving the problems related to double taxation on profits. This modification aims to make the ZEC a real stimulus for attracting companies with newly-created economic activity. At present, companies with their head office in mainland Spain are subject to double taxation on profits, which makes it difficult for them to set up in the low tax zone.
Following the announcement of an extension in December 2006, the benefits provided by the ZEC will initially be available until December 31, 2019, although this may be further extended if the European Commission authorises it.
Any company intending to carry out manufacturing, commercial or service activities within the territory of the Canary Islands may register in the ZEC; financial services are excluded.
Permitted manufacturing, processing, handling and goods distribution activities include:
Permitted service activities include:
Service companies registered under the ZEC may be set up in any part of the Canary Islands.
Production, processing, handling and distributive activities must be located in certain Designated Areas at:
There are Designated Areas on each of the other Canary Islands.
Any Company wishing to set up in the ZEC must satisfy a number of requirements, of which the most important are:
Taxation of ZEC Companies
ZEC companies enjoy the following tax benefits:
Registration of a ZEC Company
Application, authorisation and registration are the three steps required of companies wishing to set up within the ZEC.
The application must be presented together with the description of the intended activities.
The Consortium Board will then decide on the application and will inform the applicant of its decision within the space of two months from the date of presentation.
The new company must be incorporated by a Notary Public and must be registered on the proper Registers (this may be done prior to authorisation being received).
Once authorisation has been received, the company must be registered on the Official ZEC Register, which is managed by the Consortium Board.
ZEC Companies are subject to the following fees:
Info from lowtax.net