The Canary Islands Are An Offshore Center For Discovering
From the Central Government the legitimacy has been approved at all time of the Canary Islands Fiscal Economic and Fiscal Regime (REF), claiming the reactivation of the economy of the islands and the capital attraction. It is the aspiration to a special zone with the same distinctive features which enjoys Madeira, Portuguese island recognized also as peripheral territory by the European Union.
The distance of the Canary islands, closer to the African littoral than to the rest of the Spanish territory, it is translated in a historical lack of goods and raw materials, and in consequence in a notable increase of the logistic costs. Therefore the Central Government has always advocated a special tax regime for free trade and exemption from taxes.
Canarian ports are already among the largest in Europe if we go back to the sixteenth century. They were mandatory level crossings to the black continent and the New World. The values that shape a mentality of port dependence, remain in our days being translated principally in tax exemptions in products of consumption, nonexistence of monopolies and reduced indirect tax burden.
Even the installation in the Canary Islands of the distribution firms is relatively recent, about fifteen years ago. This situation among others, has enabled the success of local protectionism.
From the Central Government the legitimacy has been approved at all time of the Canary Islands Fiscal Economic and Fiscal Regime (REF), claiming the reactivation of the economy of the islands and the capital attraction. It is the aspiration to a special zone with the same distinctive features which enjoys Madeira, Portuguese island recognized also as peripheral territory by the European Union.
The benefits of the REF are: lower taxes in relation with the rest of the State, economic incentives focused to promoting the investment, exemptions and reductions in the practical totality of taxes, mainly IS and IRPF.
The great achievement of the REF it represents the creation of fact of an offshore center, with interesting fiscal advantages to the financial and industrial companies that decide to install the islands. Concretely in certain areas known as the Consortium of the Canary Islands Special Zone (ZEC).
Its takeoff has been late in some points due to the collision with certain directives and recommendations of the European Union. The objections members were referring to the competition among the countries to attract investments, besides the duration. Initially planned until the year 2024, it will finish at 2019, with possibilities of inscription of companies until 2013.
It is necessary to mention that the requirements to become in a entity ZEC change depending on if the company establishes itself in one of the islands of the capital or not, being minor the requirements in this second case.
As business lawyer with economic and fiscal knowledge, it looks like to me a specially interesting opportunity for on-line companies. Even more atractive than Madeira or Gibraltar, where already there are located houses of leading bets in the network, given our minor fiscal pressure to the consumption.
In short, we can say that the translation of the attractions for investment are realized in a corporate tax reduction, ranging between one and 5% depending on the number of jobs created and indirect tax exemptions on consumption (IGIC). ITPAJD exemptions and reductions in local taxes complete the list.
The applicable requirements of companies wishing to settle in the main islands of Tenerife and Gran Canaria, are:
i) The entity must be newly created and have its registered office and effective place of management within the geographical area of the ZEC.
ii) At least one of the administrators must be resident in the Canary Islands.
iii) An investment from 100.000 Euros.
iv) A m
