The initiative Best In Gran Canaria has launched the ‘Tax Guide’ to facilitate all the relevant information on the current regulations related to taxation in the Canary Islands.
The document, produced by Best In Gran Canaria, is an instrument aimed at companies and entrepreneurs that develop their projects in Gran Canaria or intend to do so. The ultimate objective is to reinforce technical knowledge about investment opportunities on the island with the goal of maintaining Gran Canaria as a regional leader in attracting new businesses and in economic diversification. Gran Canaria is the ideal environment to take advantage of the benefits of the Canary Islands Economic and Fiscal Regime (REF).
The Canary Islands are, in fact, at the forefront in terms of taxes applied to the development of new economic activities, by maintaining the lowest tax rates in the national territory, as a result of the Canary Islands Special Zone (ZEC) and the specific reserves available in the islands, as is the case of the Reserve for Investments in the Canary Islands. In addition, there are incentives for investment, higher deduction percentages in comparison with the rest of the country, exclusive deduction forms, such as new fixed assets, and limits for the application of aids higher than in any other territory of Spain, among others.
The document is structured in five sections of interest: (1) tax residence and its effects, (2) corporate tax and the ZEC regime, (3) other taxes, such as the tax on the income of non-residents, the Canary Islands general indirect tax (IGIC), customs duties, etc., (4) personal income taxation and (5) Social Security.
The 2022 ‘Tax Guide’ incorporates, in addition, all of the last year regulations, such as the stated limits for regional investment aid or the recent exemption of the investment requirement in the Canary Islands Special Zone for companies that generate employment and knowledge.
The document, free to download and access, is available on the website of ‘Best in Gran Canaria, in Spanish and English.
In addition, the SPEGC puts its business support team of Economic Promotion and the Business Support Service at the disposal of entrepreneurs and companies to answer any questions and concerns related to the establishment on the Island.