The Canary Islands Special Zone (ZEC) removes the minimum investment requirement for companies focusing on knowledge and innovation
The "Official State Gazette" (BOE) has published the 1/2022 circular, in which the Governing Council of the Canary Islands Special Zone established the guiding criteria for the minimum investment exemption in ZEC.
The Canary Islands Special Zone (ZEC) is a low tax zone created within the framework of the Canary Islands Economic and Tax Regime (REF) to promote the economic and social development of the Islands and diversify their production structure.
Many companies have launched or evolved in Gran Canarias due to the advantages associated with ZEC, such as the reduced rate of 4% for entities subject to the Corporate Income Tax.
This regime was approved by the European Commission in 2000 and has been improving and relaxing the requirements ever since. However, the minimum investment of 100.000 euros in fixed assets within the activity was still active until last week.
With this change already introduced, several companies attending to several unique characteristics could be exempted from the minimal investment requirement.
Small and medium-sized companies with the seal of 'Innovative PYME" by the Minister of Science and Innovation or the ones whose activities focus on obtaining it, as well as R+D companies and those in the audiovisual, video games, IT, and telecommunications fields, could ask for an exemption of minimal investment requirement. To receive this exemption, companies must have six or more employees.
A new rating system for reducing investment requirements is also established if companies employ more than the set minimum. Companies in Tenerife and Gran Canaria that use more than 20 people could reduce investment to 20.000 euros, 40.000 for those who employ at least 15 people, and 60.000 for those who employ 10 people. Companies that generate more than 25 jobs are not required to make a minimal investment.
This new measure seeks to promote the Canary Islands as an ideal destination for investments in sustainability, creative and innovative industries and to encourage the effective development of the entrepreneurial ecosystem of the islands.
This measure eases the creation and relocation to Gran Canaria of emerging companies in innovation, knowledge, and R+D fields. In recent years, Gran Canaria has had the largest share of investment in the Canary Islands due to the tax incentives and economic advantages for companies on the island. SPEGC aims to inform and guide innovative projects seeking to relocate to the island and to encourage local employment. If you have questions, our experts will help you through the 'Business Support Service' of SPEGC.
projects seeking to relocate to the island and to encourage local employment. If you have questions, our experts will help you through the 'Business Support Service' of SPEGC.
The second edition of the series ‘Moving to Gran Canaria: The complete relocation Guide’ published by Best in Gran Canaria is now readily available
The island’s collaborative investment attraction initiative has updated its trademark guide, including new services, advantages, shortcuts and admin procedures that soften the relocation process to the preferred investment destination in Southern Europe, Gran Canaria.
This much-awaiting free-to-use guide provides all the information required to help relocated professionals, expatriates, remote workers, entrepreneurs and families, and it indeed facilitates their arrival on the island by minimising the natural uncertainties that come along any relocation process.
Published in digital format and available in English and Spanish, the Softlanding Guide was initially launched in 2021 and it is the first comprehensive approach to including all the technical, legal and administrative matters that professionals and their families encounter during the relocation process to the Canary Island. The steb by step approach is simplified by adding a dynamic reading guide, valuable links, checklists and listings of tasks/formalities to be completed before, during and after setting foot on the island. Application for visas and work permits, identification documents (NIE, social security, municipal registration), personal tax info, constitute the core content of the guide, along with advice and solutions for all the typical matters that must be dealt with by families planning to relocate in Gran Canaria.
The 2022 edition incorporates new links and detailed information on public and private infrastructures recently launched in Gran Canaria and keep the centrality of the ‘Reading Guide’, as a tool to help readers navigate through the document. The technical information is grouped according to different profiles, both for workers moving for a short period of time or indefinite/long-term relocations.
The release of the updated version for the ‘Moving to Gran Canaria: The complete relocation Guide’ is a joint effort of the Economic Promotion Society of Gran Canaria (SPEGC)‘ and the island’s economic ecosystem, including local and international companies, coworking/colivings, business associations, consulates, other public entities, entrepreneurs and professionals, that have duly contributed to improving the guide’s content and usability.
‘Best in Gran Canaria’ remains as the single-entry point for enquiries about how to best develop business ventures and R&D project in Gran Canaria, offering highly-regarded services via SPEGC, including: tax information, tailor-made training courses, offices and spaces within the Gran Canaria Technology Park, financing instruments, recruitment tools, etc.
The guide can be downloaded on the 'Best In Gran Canaria' website or by clicking here.