Canarian Special Zone (ZEC)

Take advantage of the Canary Islands Special Zone for your business now

In the Canary Islands Special Zone (ZEC) , your company holds the key to accessing one of the most advantageous tax regimes in Europe, and we're the team that will get you there! As specialized advisors, we focus on turning the opportunities of the ZEC into real benefits for your business.

Advantages of belonging to the ZEC

4% tax

ZEC companies are subject to Corporation Tax at a reduced tax rate of 4% (compared to the 23% average in the European Union (EU).

Exempt from withholding

Dividends distributed by subsidiaries of ZEC entities to their parent companies in another EU country are exempt from withholding tax.

Exempt from taxation

Exemption from taxation in the Tax on Property Transfers and Documented Legal Acts.

Exempt from IGIC

Exemption from the Canary Islands General Indirect Tax (equivalent to VAT) for the deliveries of goods and services between ZEC entities and, for imports.

Who can install?

All entities and branches that intend to carry out industrial, commercial, or service activities, provided that said activities are duly classified within a list of permitted activities according to the specific regulations of the ZEC and are carried out within the geographical scope of the Canary Islands.

Furthermore, to benefit from the incentives, companies must meet certain requirements. Thus, the ZEC promotes sustainable economic development, attracting investments that contribute to the diversification of the Canary Islands' business community.

Invest in the best taxation in Europe

The Canary Islands Special Zone (ZEC) is a low-tax zone that is created within the framework of the Economic and Fiscal Regime (REF) of the Canary Islands, with the purpose of promoting the economic and social development of the Archipelago and diversifying its productive structure.

The ZEC was authorized by the European Commission (EC) in January 2000 and is regulated by Law 19/94 of July 6, 1994.

Requirements to belong to the ZEC

Be a newly created entity or branch with domicile and headquarters of effective management in the geographic scope of the ZEC.
At least one of the administrators must reside in the Canary Islands.
Create at least 5 or 3 jobs depending on whether they are in the capital islands or not, within the 6 months following the time of registration and maintain this average during the years that it is attached to the ZEC.
Make a minimum investment of €100.000 (for the islands of Tenerife and Gran Canaria) or €50.000 (in the case of La Gomera, El Hierro, La Palma, Fuerteventura or Lanzarote) in fixed assets related to the activity, within the First 2 years from the moment of registration.
Activities must be carried out within the geographical area of the Canary Islands.

The following companies may request exemption from the investment requirement, provided that the employment requirement exceeds the minimum required: (i) innovative companies, (ii) those that operate in priority sectors (audiovisual, video games and technology) and (iii) that are intensive in human resources.
In the case of companies that carry out human resource-intensive activities on the capital islands and that employ at least 20 people, they may reduce the investment up to 20.000 euros; up to 40.000 euros for those that hire at least 15 people; and up to 60.000 euros for those who commit to hiring 10 workers. For companies that create more than 25 jobs, there will be no investment requirement.
That its corporate purpose is within the activities permitted within the framework of the ZEC.

Download a complete guide to the ZEC Zone

What do our customers think?

Excellent service and professionalism. I've been partnering with them for a while. They're a very professional, attentive, and helpful team. Highly recommended.

Very happy with the service and the team's effort. They resolve issues properly. I really enjoy working with them; I feel like they're part of my company's team.

Excellent service. They explained the entire tax return process to me, and Lorena was very kind and attentive throughout. I highly recommend her.

The experience has been very favorable. They have always been available for any questions or clarifications. Their availability, prompt handling, and professional service are particularly noteworthy. If we had to go through this process again, we would rely on FIMAX for it. They also inform you and process the subsidies you may qualify for. A 10/10.

I can't say enough good things about the people who helped us, from the initial recruitment process to the entire processing of our applications. A team of professionals ready to help at all times. A 10.

Excellent service, very professional and efficiently. We have the results in less waiting time than we have been thinking. They are a professional team.

FAQ

What is the Canary Islands Special Zone (ZEC)?

The Canary Islands Special Zone (ZEC) is a low-tax tax regime established in the Canary Islands to encourage foreign and national investment for economic development in the region.

What are the tax benefits of the ZEC?

Companies establishing themselves in the ZEC enjoy significant tax advantages, such as a reduced Corporate Tax tax rate of 4%.

Who can benefit from the ZEC?

Both local and foreign companies can benefit from the ZEC, as long as they meet the established requirements, such as creating jobs and making investments in productive assets.

What is the process to apply for the ZEC?

The process involves submitting an application to the competent body, complying with the requirements and commitments established by the regulations.

How long does the preferential tax regime in the ZEC last?

The tax benefit has an indefinite duration and is endorsed by the Spanish authorities and the European community every 10 years. The continuity of the Zec Zone is guaranteed by the European Union.

What sectors are eligible for the ZEC?

The ZEC covers a wide range of sectors, from services to industry, promoting economic diversification in the Canary Islands.

How does the ZEC affect job creation in the region?

One of the fundamental requirements to benefit from the ZEC is the generation of local employment, thus contributing to the social and economic development of the community.

Can other incentives be combined with the ZEC?

Yes, it is possible to combine the ZEC with other incentives and aid available, which makes the region even more attractive for investment.

What are the accounting and reporting obligations for companies in the ZEC?

Companies in the ZEC must comply with the usual accounting and reporting obligations, ensuring transparency and regulatory compliance.

How can Fimax Asesores help companies interested in the ZEC?

If you would like more information or need personalized advice about the Canary Islands Special Zone, please do not hesitate to contact Fimax Asesores. We will guide you from start to finish, providing a turnkey service for setting up your company within the ZEC (Canary Islands Special Zone) organization.