‘Best in Gran Canaria’ launches a workshop about how to finance R&D and Technological Innovation activities in Gran Canaria (and how to best combine direct and indirect aid)
Professional event
- Registration deadline: 19/04/2021 4 pm
- Date: 20/04/2021 10:30 am - 12 pm
- Duration: 1.5 hours.
- Mode: Online
Useful information
- Price: Free
- Language: Spanish (VoD in English)
- Registration: SPEGC website
Tax incentives consisting of deductions for R&D and/or technological innovation projects may be combined with direct credit facilities for R&D activities and optimised during the project life cycle, or even in subsequent operational phases of the resulting technology.
In addition, thanks to its special Economic and Tax Regime the Canary Islands offer even more beneficial tax terms than the rest of Spain.
‘Best in Gran Canaria’ and SPEGC (Sociedad de Promoción Económica de Gran Canaria), provide information and advice on how to make the best possible use of these tax and financing incentives for R&D and innovation activities, including a specific Business Support Service (Servicio de Apoyo a Empresas - SAE) specialising in these matters. The SPEGC is also responsible for delivering information at regional level via the PIDi network of the Centro para el Desarrollo Tecnológico Industrial (CDTI).
Objectives
The aim of this workshop is to highlight these benefits, provide more detailed information regarding the different direct and indirect tax incentives available and offer a series of guidelines and recommendations for their processing and management.
Target audience
All companies carrying out R&D or technological innovation activities in the Canary Islands.
Programme
- 10:30 am: Current context of R&D and innovation technology incentives in Gran Canaria, Cosme García Falcón, Managing Director (Sociedad de Promoción Económica de Gran Canaria -SPEGC).
- 10:40 am: Direct aid by the CDTI for R&D and technological innovation, (Centro para el Desarrollo Tecnológico Industrial - CDTI).
- 11:00 am: Intensity of the Tax Deduction in the Canary Islands for R&D and Technological Innovation. Case study: combination of direct and indirect aid, Eduardo García de La Santa, Head of Expansion at INCOTEC.
- 11:45 am: Certification of R+D and Technological Innovation activities in the Canary Islands by the Spanish Innovation Certification Agency (Agencia de Certificación en Innovación Española - ACIE).
- 12:00 pm: Q&A
Gran Canaria: A unique regulatory environment to develop innovative projects, particularly for SMEs
Spain’s places third in Europe in terms of fiscal tax support for R&D projects, according to the OECD annual report for 2020. It is thus not surprising that the Canary Islands, thanks to its increased deduction percentages over the rest of the national territory, should be considered as the most advantageous tax system in Europe and, possibly, one of the best in the world.
This is possible thanks to the special 'Economic and Fiscal Regime' of the Canary Islands, which allows for increased deduction percentages on eligible expenses and extended tax quota limit, compared to the rest of the national territory, as follows:
| Canary Islands | Resto of Spain | |
| Deduction for ‘Technological Innovation’ | 45% | 12% |
| 'Deduction for R&D activities’ | Up to 75.6% | Up to 42% |
| Research staff salaries | +17% | +37% |
| Investments in fix assets for R&D activities | +28% | +8% |
| Quota limit (max. aggregate deduction to be applied) | Up to 90% | Up to 50% |
This tax shelter incorporates multiple benefits as it has been specifically designed to encourage innovative and disruptive ventures:
• It contemplates a category that is not considered by the tax regimes of other neighbouring countries: the deduction for ‘Technological Innovation’. It encompasses any technological advance in obtaining new products or production processes or the development of substantial improvements to existing processes, including first non-commercial prototypes and initial demonstration/pilot projects, including those related to animation and videogames. Hence, it allows for fiscal support to projects that would not qualify as pure R&D.
• A wide range of projects can benefit from these deductions, regardless of the economic sector that would apply the technological improvement or the maturity/TRL of the project.
• It has been especially designed for SMEs, as they can benefit both from the ‘deduction for technological innovation’ and a direct discount on Social Security contributions for the employees directly involved in the innovative venture (40% reduction in business contributions to the Social Security).
This smart combination (deduction accompanied by a reduction in Social Security contributions) applies to SMEs with labelled as ‘Innovative SME’ and results in a boost to the design and development of innovative projects within the company.
Gran Canaria not only offers technical resources, infrastructures/facilities and an ecosystem dedicated to R&D, but it also has the human resources necessary to undertake related projects. ‘Best in Gran Canaria’ by means of the Agency for the Economic Development of Gran Canaria (SPEGC) offers a ‘Support Service for Companies’ (SAE, it its Spanish acronym). It is a dedicated advisory service, aimed at local start-ups, companies and innovation professionals, but also at international projects that are looking for the ideal research base to test and validate their proposals.
Gran Canaria: A unique regulatory environment to develop innovative projects, particularly for SMEs
Spain’s places third in Europe in terms of fiscal tax support for R&D projects, according to the OECD annual report for 2020. It is thus not surprising that the Canary Islands, thanks to its increased deduction percentages over the rest of the national territory, should be considered as the most advantageous tax system in Europe and, possibly, one of the best in the world.
This is possible thanks to the special Economic and Fiscal Regime of the Canary Islands, which allows for increased deduction percentages on eligible expenses and extended tax quota limit, compared to the rest of the national territory, as follows:
| Canary Islands | Resto of Spain | |
| Deduction for ‘Technological Innovation’ | 45% | 12% |
| 'Deduction for R&D activities’ | Up to 75.6% | Up to 42% |
| Research staff salaries | +17% | +37% |
| Investments in fix assets for R&D activities | +28% | +8% |
| Quota limit (max. aggregate deduction to be applied) | Up to 90% | Up to 50% |
This tax shelter incorporates multiple benefits as it has been specifically designed to encourage innovative and disruptive ventures:
• It contemplates a category that is not considered by the tax regimes of other neighbouring countries: the deduction for ‘Technological Innovation’. It encompasses any technological advance in obtaining new products or production processes or the development of substantial improvements to existing processes, including first non-commercial prototypes and initial demonstration/pilot projects, including those related to animation and videogames. Hence, it allows for fiscal support to projects that would not qualify as pure R&D.
• A wide range of projects can benefit from these deductions, regardless of the economic sector that would apply the technological improvement or the maturity/TRL of the project.
• It has been especially designed for SMEs, as they can benefit both from the ‘deduction for technological innovation’ and a direct discount on Social Security contributions for the employees directly involved in the innovative venture (40% reduction in business contributions to the Social Security).
This smart combination (deduction accompanied by a reduction in Social Security contributions) applies to SMEs with labelled as ‘Innovative SME’ and results in a boost to the design and development of innovative projects within the company.
Gran Canaria not only offers technical resources, infrastructures/facilities and an ecosystem dedicated to R&D, but it also has the human resources necessary to undertake related projects.
‘Best in Gran Canaria’ by means of the Agency for the Economic Development of Gran Canaria (SPEGC) offers a ‘Support Service for Companies’ (SAE, it its Spanish acronym). It is a dedicated advisory service, aimed at local start-ups, companies and innovation professionals, but also at international projects that are looking for the ideal research base to test and validate their proposals.
Port of Las Palmas: strategic location for the offshore
The Spanish National Public broadcaster (Televisión Española – RTVE) shows in its programme “Port of Gran Canaria: strategic location for the offshore” the important role played by the Port of Las Palmas in the Oil & Gas and offshore energy sector, most remarkably during the global activity downfall caused by 2020’s synchronous oil and health crisis.
The Port of Las Palmas -situated on the north-eastern tip of Gran Canaria- is considered a strategic centre for the Oil & Gas sector and reports the highest connectivity rate of the region, as it serves as a connection point between Europe, Africa and the Americas. Port customers value its wide range of repair and supply services, but also the technical, legal and health auxiliary services embedded into the business value position of Gran Canaria. These factors have contributed to making Las Palmas Port a consistent base for a large number of global energy operators, which carry out maintenance, repair and commissioning operations within the port premises.
Gran Canaria is not only a reference for the O&G sector, but also for the assembly, repair and retrofitting of equipment for offshore wind energy, in addition to providing services to PSVs, seismic and scientific-vessels.
The largest bulk of these activities are carried out by the local business ecosystem: the demanding technical requirements and quality standards of both industries have led to the development of a highly skilled pool of local talent and companies that pursue the highest standards of excellence. There is thus a multiplier effect implied: the increased experience leads to larger and more complex projects steadily arriving to the island. The Port of Las Palmas is now among the
selected group of ports fully capable of catering to the needs of the Oil & Gas sector, readily positioned to attend the expected reactivation in 2021.
The Port Authority of Las Palmas, the Free Trade Zone of Gran Canaria and the Cabildo of Gran Canaria (Sociedad de Promoción Económica de Gran Canaria) work together through the ’Best in Gran Canaria’ initiative to promote the advantages associated with operating from a competitive & safe maritime hub.