Can you imagine paying 4% tax without leaving Spain? Without having to move your company to countries such as Andorra, Ireland, Luxembourg, or even Dubai?
4 is the key number for another of THE CANARY ISLANDS SINGULARITY star products: the ZEC (Canary Islands Special Zone).
What is the ZEC?
A low-tax zone in the Canary Islands, authorized by the European Commission (EC) since 2000.
It welcomes entities and branches engaged in industrial, commercial, or service activities.
The ZEC establishes a protocol for obtaining authorization, complying with a series of basic precepts that take into account economic activity and its impact on the islands.
Some advantages:
- 4% sobre impuestos de sociedades.
- Comparativa con Latinoamérica: 37,5% (Puerto Rico), 35% (Chile, Colombia y Argentina), 34% (Venezuela), 30% (México) y 28,38% (Promedio).
- Comparativa con Europa: 35% (Malta), 30-33% (Alemania, incluyendo el impuesto comercial), 25% (Francia y España (reducido al 15% en startups y durante dos años), 20% (Estonia),16% (Luxemburgo), 12,5% (Irlanda y Chipre), 10% (Bulgaria y Andorra (50% el primer año)) y 9% (Hungría).
- Comparativa con Dubái: 9% sobre empresas con un beneficio igual o superior a 95.000 euros. 0% para las que tienen un beneficio neto inferior.
- Exención de Impuesto sobre la Renta a No Residentes.
- Exención por el Impuesto de Transmisiones Patrimoniales y Actos Jurídicos Documentados.
- Compatible con RIC, DIC y Zonas Francas.
Requirements:
- Entity or branch with effective headquarters in the Canary Islands.
- Administrator residing in the Islands.
- Depending on the island where the business is located: Minimum of between 3 and 5 jobs (without establishing how much should be paid to these employees).
- Depending on the island where the business is located: Investment of between €50,000 and €100,000 in the company’s own assets within the first 2 years.
Two news have put the ZEC in the spotlight:
- YouTubers who move to Andorra to pay less tax.
- The fixed tax rate of 15% for large corporations.
In the first case, there has been a truly unique debate in which, with a few honorable exceptions, practically no one, including the Central Administration, has mentioned THE CANARY ISLANDS SINGULARITY, or in other words, the fact that tax reductions (ZEC or DIC) or reinvestment (RIC) can be applied in the Canary Islands.
So many influencers rushed to settle in the neighboring country because they paid 10%, ignoring details such as where the object of their wealth is located and other issues.
In some cases, it has been almost five years since that move, and… Have the tax authorities come knocking on your door?
We may find out someday, or we may not… The truth is that thanks to the ZEC, THE CANARY ISLANDS ALLOW TAXES OF 4% (well below Andorra) and, in addition, offer the opportunity to reinvest or help create new businesses and jobs, showing solidarity with the rest of the country.
Of course, everyone is free to choose what they think is best, but, according to their statements, what “forces” them to move is the tax burden.
The Canary Islands are still part of Spain.
It wouldn’t hurt to look at it more fondly… or if fondness doesn’t apply to your business, at least look at it for how good it would be for your pockets.
Regarding the second case, the G7 (Canada, the United States, Japan, France, Germany, Italy, and the United Kingdom) has announced an agreement, described as historic, to lay the foundations for new international taxation by introducing a minimum tax rate of 15% affecting large corporations such as AMAZON, GOOGLE, and FACEBOOK, which, thanks to financial and tax engineering, are paying much less.
Interestingly, these multinationals have congratulated governments on this regulation, hoping that it can be implemented… against their interests. It’s all very peculiar.
Now all that remains is to reach agreement between the G20 and the OECD, and each sovereign state with its own fiscal policies, because these triumphant declarations are the beginning of an agreement.
A lot of work ahead.
In any case, with regard to the ZEC, and as stated by its own President, PABLO HERNÁNDEZ, there is no threat to the Canary Islands and he even sees it as an opportunity:
What opportunity? The opportunity to put an end to all those tax havens – Guernsey, the Isle of Man, Jersey… – which not only encourage tax avoidance but also, in a way, engage in unfair competition with territories such as the Canary Islands and other European Outermost Regions (ORs), where the existence of special tax regimes is more than justified. El Día. Tenerife.
The status of OUTERMOST REGION safeguards the exceptional nature of the increased state aid provided under the Canary Islands REF.
As a Morgan Stanley slogan says:
You have to pay taxes. But there is no law that says you have to leave a tip.
In turbulent times, with Trump’s tariff war and other commercial (and non-commercial) threats, the ZEC is an option to consider, not only for attracting companies to the Canary Islands but also for directing the world of finance elsewhere.
A few days ago, JOSÉ ELÍAS, President of AUDAX RENOVABLES, and one of the most influential businessmen, referred to the INEFFECTIVE MANAGEMENT OF TAXES in our country, including the more than 200 million it would cost him to move his businesses abroad.
Have you ever considered studying the benefits of the ZEC?
TODO ES SINGULAR offers a turnkey service to take advantage of the ZEC and manage businesses from the Canary Islands.
*This post is the property of TODO ES SINGULAR, S.L. and the information contained herein may be used by third parties with the express written authorisation of the source.
