The Canary Islands Special Zone (ZEC) is a tax incentive of the Economic and Fiscal Regime (REF) in the Canary Islands, created with the aim of attracting companies so that they opt to incorporate in the Canary Islands, generating thus qualified jobs and investment. After its last two reforms, the ZEC has been substantially strengthened as an international tax tool, and consequently, it is more and more attractive for international investors.
Such modifications led to several policy improvements. Among one of the most significant changes is that the whole territory of the Canary Islands is now part of the ZEC, regarding the establishment of companies and the inclusion of new economic activities in strategic sectors so that the Canary Islands can become a more competitive region within the context of an increasingly globalised economy.
In addition, we should not forget the calendar of promotional activities to attract investment from abroad. According to the data collected by last year’s annual report, the promotional activities are mainly focused on strategic markets and economic sectors that are especially sensitive to the special features of the Canary Islands, such as: the audiovisual sector, Information and Communication Technologies (ICTs), technology and innovation, outsourcing and business services, renewable energies, services linked to port infrastructures and tourism-related infrastructures, as well as distribution, logistics and transport and the blue economy.
Therefore, we can confirm the entry of more than 40 different countries that, in general, show us the origin of the business investment coming into the Canary Islands through this tax incentive. All promotional activities are regulated by the Promotional Plan 2014-2020 approved by the governing board, a document that is reviewed every year in order to find out the countries and sectors where action should be taken. It should be noted that Italy, German and the United Kingdom are leaders in the number of companies that are operating under this low taxation regime.