Taxes

Tenerife has significant tax advantages within Spain and the European Union. Its differentiated economic and fiscal system, permanently included in the legal framework of the European Union, guarantees exceptional conditions for investment and trade.

The Canary Islands Special Zone (ZEC)

A reduced corporate income tax rate of 4%, compared to 25% in Spain and 21.30% on average in the European Union.

Canary Islands General Indirect Tax (IGIC)

The mechanism of the IGIC is very similar to VAT of mainland Spain, in which the tax is levied at each stage of the supply chain where value is added. The general rate is 7%, compared to the general Spanish VAT rate of 21%.

The Canary Islands Investment Reserve (RIC)

A deduction of up to 90% on the undistributed profit.

Tenerife free zone

Limited space for storage, handling or transformation of goods, regardless of origin, destination, quantity or nature. It offers advantages in terms of administrative processing, tariffs and taxes, fully compatible with other incentives such as those of the Canary Islands Special Zone (ZEC) or the Canary Islands Investment Reserve (RIC).

Non-resident Income Tax

Taxation at a fixed rate of 24% up to 600,000 euros of taxable base for foreigners displaced to Tenerife for work or as administrators.