The growing interest in the Archipelago is conveyed, among other factors, by the increase in the number of requests made by production companies to establish themselves within the ZEC and therefore pay taxes under more favourable terms
Fernando Clavijo highlights the “growing results” of the international audio-visual industry and the number of films and shows being shot at Canarian locations
Canary Islands. – The acting president of the Canary Islands, Fernando Clavijo, participated today, Wednesday, at the work conference held in Madrid which focused exclusively on the tax incentives of the Canary Islands in order to attract professional and business activities related to the cinema and audio-visual production industry. At the headquarters of the Royal Academy of Cinematographic Arts and Sciences, the acting head of the government reiterated the value of the tax mechanisms associated to the Canary Islands Special Zone (ZEC) and he also highlighted how this taxation system complements other values that the Archipelago offers: “from our natural scenery to our unique climate, including our wide range of beautiful landscapes along with our services network, the high level of national and international connectivity and the quality of our skilled local labour” Fernando Clavijo pointed out during this conference which was attended by over fifty national and international audio-visual producers and several experts on the islands’ tax policy.
“The Canary Islands are a unique territory for the film industry” declared Fernando Clavijo, “and taking into consideration our social and geographical situation, we have been far-sighted enough to attract an industry with great capacity for business generation both directly and indirectly.” In this regard, the acting president for the Canary Islands highlighted the regional advantages and stated that the islands are “a territory where it is easy to work” for film and audio-visual industry producers. “We are a land that offers infinite advantages, from our locations to the diversity of our landscapes. From our administrative reliability to our streamlined bureaucratic processes in areas such as security and low taxation”, pointed out Clavijo, “and we have all of this right here, merely two hours away by plane, without ever leaving Spain.”
With regards to taxation, the acting president of the Canary Islands mentioned some of the most important film festivals to emphasize the commitment the Archipelago has made to films and audio-visual production. “A few weeks ago, the latest edition of the Cannes film festival took place, probably the most important festival in Europe and certainly a showroom for many European countries looking to attract filmmaking. This is a show room on which Spain has not been able to fully capitalise yet, but the Canary Islands have had a few years head start,” explained Fernando Clavijo regarding the figures reached by the Canary Islands in 2018, as a total of 70 foreign and national producers chose locations on the Canary Islands to shoot their films, shows or documentaries. This growing interest in the Archipelago is evidenced, among other things, by an increase in the number of requests made by producers who wish to setup themselves in the ZEC and therefore pay taxes under more favourable terms. “There were eighteen companies in 2018, three times more than four years ago,” stressed Clavijo, “and we believe those numbers will multiply because the benefits of investing and producing in the Canary Islands are infinite.”
Based on the firm belief that “the Canary Islands are not just a natural paradise, an international tourist destination of renowned prestige,” Fernando Clavijo described the Archipelago as a “present and future place for the development and establishment of businesses” because “we have been capable of consolidating an efficient, sound and trustworthy tax policy instrument. This unique tool positions the Canary Islands as an international hub located in a unique geostrategic spot in the Atlantic, acting as a gateway to Africa, America and Europe with a series of taxation tools that are well established and protected within our new Economic and Tax Regime (REF)” pointed out the acting president to representatives of businesses and companies from the national and international audio-visual industry such as Mediaset, Vértice 360, Vision Media, Odessa Films, Mandarina Films, El Ranchito or Mediapro, as well as members of the Cinematography and Audio-visual Arts Institute.
The vice-president of the ZEC, Pedro Alfonso Martín, also took part in this work conference held in Madrid. He stressed that the Canary Islands offer a significant number of advantages for companies in the audio-visual sector, especially regarding post-production, such as the availability of a wide variety of natural and professional sets, production and post-production infrastructures, specific economic incentives that double those at national level up to 40% and reimbursement of 5.4 million euros. “These tax incentives are unrivalled, such as the 4% corporate tax rate or the conveyance tax, among other tax rates”, explained Pedro Alfonso, in response to what he defined as “the greater compatibility of incentives together with the greater accumulation permitted in the European Union by virtue of the status of the Canary Islands as an outermost region”.
Alfonso Martín explained that the ZEC offers an unbeatable fiscal framework that applies to this sector with a reduced tax rate, in addition to a number of additional advantages that are protected by the European Union’s (EU) legal framework for production and post-production activities, production services, the provision of assistance when filming, dubbing, photography, advertising, distribution, streaming, animation and videogame development, among others. In addition, Alfonso Martín pointed out that the ZEC is compatible with other tax incentives. “All these advantages make the Canary Islands the best destination in Europe for investments in the audio-visual sector,” he added.
These exceptional tax mechanisms were also explained to the companies of this sector which were called to participate in the work conference held in Madrid during the presentations given by Natacha Mora, coordinator of Canary Islands Film, and Olga Martín, head of the ZEC Agency department.These exceptional tax mechanisms were also explained to the companies of this sector which were called to participate in the work conference held in Madrid during the presentations given by Natacha Mora, coordinator of Canary Islands Film, and Olga Martín, head of the ZEC Agency department.