Canary Islands.- There are many reasons that make the Canary Islands Special Zone (ZEC) the star incentive of the unique tax system that the Archipelago has: the Canary Islands Economic and Fiscal Regime (REF). This houses different figures, one of them is the aid for regional purposes called the ZEC, endorsed by the European Commission (EC) and the governments of Spain and the Canary Islands, a low tax regime with full legal and fiscal guarantees to contribute to social development economic and economic conditions of the Islands and thus compensate for their structural disadvantages derived from their condition of Ultraperipheral Region (RUP).
The exceptional fiscal framework of the Islands adds to the geostrategic location of the Islands in the Atlantic as a tricontinental commercial nexus, this confers an international projection among the reference low-tax regions to establish international business operations under unbeatable conditions for companies that must comply with regulatory requirements. The advantages of the incentive are applicable to many key businesses for the promotion of sectors that are scarcely established in the regional economy and that, above all, provide development, innovation and technology. There are already more than 650 companies that have established themselves in the Islands under this regime, these coming from more than fifty countries. With outstanding infrastructures, services and advantages of the European way of life, the Canary Islands enjoy the best fiscal climate in Europe, full connectivity to access global markets and an experienced and exceptionally qualified workforce. Good reasons for potential investors.
Within the framework of the strategy of internationalization of the economy and attraction of international investments, the ZEC is a key element, since it is a tool that offers companies the most competitive taxation in Europe with 4% in Corporation Tax, while the average for the Organization for Economic Cooperation and Development (OECD) reached 34.3%, to this are added other notable advantages such as the distribution of dividends without withholding tax; the exemption in the Canarian General Indirect Tax (IGIC) on imports, the delivery of goods and the provision of services between ZEC companies; as well as the exemption of the Tax on Patrimonial Transmissions and Documented Legal Acts; compatibility with other tax incentives and the maximum limit of cumulative aid allowed by the EU aimed at promoting the competitiveness of business and economic activity in the Canary Islands in the context of the European Union (EU).