Gran Canaria: up and coming start-up ecosystem
Gran Canaria has placed 5th in the national ranking and at 64th in Western Europe in the latest annual report on technological and entrepreneurial ecosystems drawn up by StartupBlink. This means it has risen four places in the global ranking over last year's figures, according to the 'Global Start-up Ecosystem Index Report', to reach number 225.
In addition, StartupBlink provides a comparative analysis of destinations by quantity and relevance of their start-ups, as well as by the resources available for their acceleration. Thanks to the 48 start-ups based on the island (in different stages of development), 22 co-working spaces and 3 accelerators, Gran Canaria has placed immediately after Spain's major technological centres (Madrid, Barcelona, Valencia and Bilbao). In particular, the report highlights various verticals with particular strength: Transport (destination #109 worldwide), Social and Leisure (#144) and E-commerce (#154).
In addition to the organic growth of the local entrepreneurial ecosystem, the Canary Islands have turned into an ideal place to relocate companies with pilot projects or with global scale projects, particularly in digital environments. The explanation for this growing impetus for the entrepreneurial environment lies not just in the institutional support and the interest of investment funds, platforms and venture building programmes, both local and national; it is also due to a series of fundamentals: expertise and qualification of the local talent, lower operative and living expenses, tax advantages and funding instruments, and the capacity to attract and retain international talent.
The high impact of the ‘Economic and Fiscal Regime of the Canary Islands’ (REF, in its Spanish acronym) is well-accounted for in start-ups’ business plans: not only can it support the commercialization/service placement (4% tax rate for corporate tax), but also benefit from a deduction of up to 45% of expenses incurred in technological innovation projects (up to 75.6% in the case of R+D), alongside other exclusive funding.
StartupBlink is a global leader in the collection and representation of data concerning entrepreneurial ecosystems.
The SPEGC (Sociedad de Promoción Económica de Gran Canaria - Gran Canaria Society for Economic Promotion) provides support and information through its ‘Business Support Service’ (SAE), office space in the Gran Canaria Technology Park and its own investment instruments.
Find out the tax advantages to establish in Gran Canaria with the Tax Guide of ‘Best in Gran Canaria’
The Economic Promotion Society of Gran Canaria has updated its fiscal guide, a document prepare by the initiative ‘Best in Gran Canaria’ and whose purpose is to provide support to companies and entrepreneurs who are making the decision to relocate on the island. To ease its use, it is available in both, Spanish and English.
The Tax Regime of companies that operate from Gran Canaria is explained through the guide, covering subjects such as the specificities for resident entities, Corporate Income Tax and the withholdings in the Canary Islands, among others.
Additionally, other instruments as Canary Islands Special Zone (Zona Especial Canaria, ZEC), deductions for R&D and Technological Innovation or Investments in Audiovisual Productions, as tools that represent a great advantage for companies in Gran Canaria are worth special attention; thanks to the notable increases in these deductions compared to those applied at national level. As well as other instruments such as the Canary Islands General Indirect Tax (IGIC), Customs Duties (AIEM) and the Duty-Free Zone.
This document also offers a wide explanation about special taxes in the Canary Islands, given its statuts as a European customs territory, even though not from the territory of application of VAT. Thus, an overview of the application of the Business and Professional Activities Tax, Transfer Tax and the Stamp duty.
Finally, the guide dedicates a chapter to the taxation of individual persons with fiscal residence in Spain and concludes with another to Social Security, since, it should be remembered, all employers, employees and self-employed workers who work in Gran Canaria must be registered in the Spanish Social Security System.
Download the guide here.
The Gran Canaria Film Commission promotes the island's industrial ecosystem at MIFA, the world's top market for animation and digital content
SPEGC's intiative for the audiovisual and digital content creation, the Gran Canaria Film Commission, is attending online meetings from today to June 18th in its online version of the Annecy International Animation Market (MIFA), the main market in Europe for the animation film industry.
This year the event is being held for the first time in a hybrid format, with a smaller exhibition space in the city of Annecy and a virtual platform to also facilitate remote participation.
‘Best in Gran Canaria’ sister initiative, the Gran Canaria Film Commission, is participating under the umbrella of the Canary Islands Films, together with the rest of the entities that make up this label. Our aim is showcasing the advantages that the island offers for the digital animation industry, both to attract new companies to the island and to support local studios' own IP development.
A delegation of studios based in Gran Canaria participates in this online edition of the most important market in Europe to search for projects, co-productions and distribution of their own IPs.
Much more than just words: Gran Canaria is in the world spotlight for marine and maritime R&D
The island of Gran Canaria is establishing itself as one of the prime locations to undertake R&D projects, as it offers ideal conditions in terms of spatial & locational advantages, logistics and business resources, tax support, and funding opportunities.
Gran Canaria benefits from very special geo-physical conditions, together with well-equipped infrastructure (including mid-Atlantic's leading port and the related industrial cluster), economic stability, legal security, talent pool and exclusive and flexible tax conditions, as a result of the Canary Islands’ Economic and Fiscal Regime (REF). The island is therefore particularly appealing for marine and maritime projects. There are two main compelling arguments:
- The R&D tax support regime in force in the Canary Islands offers an even more advantageous version of the fiscal model operating in the rest of Spain, which already ranks among the most favourable in Europe (tax credits of up to 75.6% for expenses on R&D projects and 45% on technological innovation expenses).
- Gran Canaria has unique scientific, technical and technological facilities linked to offshore energies and exploitation of the island’s marine resources. In addition to the University of Las Palmas de Gran Canaria having multiple affiliated research groups (118 in all areas), other locally based outstanding institutions include the Oceanic Platform of the Canary Islands (PLOCAN), the Canary Islands Institute of Technology and the Spanish Bank of Algae, plus a series of public initiatives currently underway incubating projects in such key sectors such as aquaculture and biotechnology.
The object of the Oceanic Platform of the Canary Islands (PLOCAN) is to construct, equip and operate a set of marine infrastructure resources for research in the field of marine sciences and technologies. PLOCAN offers a series of high-value services aimed at attracting domestic and international users to respond to the maritime challenges of the coming years. Its specialized facilities include onshore buildings with experimental laboratories and access to harbour area, the Oceanic Offshore Platform resting on the seabed (1.5km from the coast), the Oceanic Observatory and a 23sq km offshore test site. Facilities are operational all year round thanks to the island’s excellent climatic conditions.
There are many companies currently developing projects such as Esteyco, Enerocean and X1Wind, aimed at expanding wind-power systems, transforming existing offshore wind, wave and tidal technologies and introducing newly conceived support devices.
Latest news have just been revealed by danish company Floating Power Plant (FFP), which recently reported that it had obtained 17.65 million euros in R&D tax credits to finance the operational demonstration phase for a floating wave and wind unit. It represents a real milestone for the Canary Islands and Spain: never before had an offshore windpower R&D project been granted such a high level of guaranteed tax support. This funding has been approved by the Spanish Tax Agency as eligible for the country’s R&D tax credit programme. FPP intends to implement a version of its floating hybrid wind-energy and wave-power device on a commercial scale.
Gran Canaria is therefore moving forward towards a sustainable economic development model by opening up fields of innovation and energy, showing a number of successful cases of companies that have decided to develop their projects on the island, benefitting from the R&D-related tax benefits, resources and funding systems that are making Gran Canaria an unbeatable environment for developing marine technology.
Las Palmas Port community proves its industrial know-how & innovative spirit following the approval of five ideas within the framework of the Ports 4.0 Fund
The Ports 4.0 fund, an acceleration & financing framework aimed at the 4.0 transition of the Spanish port logistics sector, has approved economic support for the development of 33 ideas, five of which have been forwarded by Gran Canaria entrepreneurs and companies, through Las Palmas Port Authority. The 33 ideas which have been approved (5 of them correspond to projects developed by Port Authorities’ employees), have been chosen from a total of 100 applications presented to the "Ideas Tender" (TRL 2-4, pending experimental proof of concept).
The fact that 15 per cent of the selected ideas have been developed from the Las Palmas Ports 4.0 headquarters shows that our port community's know-how is of decisive value. Las Palmas Port is a well-known maritime operations hub, including the full range of traffics plus technical and operative capacity to nourish the development, incubation, testing and prototyping of innovative products and services.
Ports 4.0 is an initiative of the 28 State Port Authorities of Spain, under the aegis of the Plan for Innovation for Transport and Infrastructures of Spain's Ministry of Transport, Mobility and Urban Agenda. A total of 12 million euros were provided by the Port Authorities themselves, channelled through their 14 incorporated offices (with Las Palmas Port Authority as the Canary Island’s headquarters).
Out of these 12 million euros, 500,000 have been awarded for grants for the 33 ideas which have already been approved, and the rest will be deployed for the tender's other categories (commercial projects with higher TRLs).
Gran Canaria will deliver a joint acceleration response for these ideas, with the complete support of the Las Palmas Port Authority and of the the island's institutional and entrepreneurial ecosystem.
Source: Las Palmas Port Authority
SPEGC launches its 'Relocation Guide - Moving to Gran Canaria' aimed at professionals, expats and remote workers
The Economic Development Agency of Gran Canaria (‘Sociedad de Promoción Económica de Gran Canaria’ - SPEGC) recently launched a ‘Moving to Gran Canaria’ - Relocation Guide through its 'Best in Gran Canaria’ investment attraction initiative.
This guide provides all the information they need to establish their professional activity on the island, ensuring smooth and hassle-free adaptation to their new home: Gran Canaria. The guide places a firm emphasis on providing practical information from the viewpoint of relocated employees, expatriates, professionals and remote workers, facilitating their arrival on the island and minimising uncertainties in a relocation process which on many occasions includes family members and children.
Gran Canaria is a leading destination for global business and research projects, but it also offers a series of advantages that make it a unique destination to pursue a personal and family life with every guarantee of success and personal satisfaction. With its combination of quality infrastructure, digital connectivity, cost of living, climate, healthcare and legal security, Gran Canaria is an international hub where professional development and the pleasure of disconnection go hand in hand.
SPEGC has years of experience providing assistance for projects and people wishing to establish a base in Gran Canaria. This guide draws on this knowledge to propose a novel way of approaching the soft landing process in Gran Canaria. The document includes a unique Reading Guide with a recommended checklist of tasks and formalities before, during and after settling on the island (visas, identification documents - NIE, social security, municipal registration, taxes, etc.), along with advice and solutions for all the typical matters that must be dealt with by families planning to relocate in Gran Canaria (housing, areas to live, health, transport, etc.). It is an extensive yet practical compendium of all the technical, legal and administrative matters that professionals and their families encounter during the relocation process: although it offers very detailed information, the Reading Guide provides users with quick access to the knowledge they may need at any given moment. The technical information is grouped according to different profiles, whether workers moving for a short period of time or indefinite/long-term relocations. In addition, the guide has a dynamic and user-friendly approach that makes it easy to read, as well as including a printable checklist to facilitate the follow-up of pending tasks.
In pursuit of its mission of stimulating and promoting local economic development, the SPEGC and 'Best in Gran Canaria' place emphasis on accompanying and supporting professionals who choose Gran Canaria to pursue their life projects. Gran Canaria is an open, globally connected destination renowned for its hospitality and cosmopolitan lifestyle.
SPEGC also offers training activities in areas such as entrepreneurship, innovation and internationalisation, as well as an advisory service for companies establishing themselves on the island and support for business creation and consolidation initiatives.
SPEGC launches its 'Relocation Guide - Moving to Gran Canaria' aimed at professionals, expats and remote workers
The Economic Development Agency of Gran Canaria (‘Sociedad de Promoción Económica de Gran Canaria’ - SPEGC) recently launched a ‘Moving to Gran Canaria’ - Relocation Guide through its 'Best in Gran Canaria’ investment attraction initiative.
This guide provides all the information they need to establish their professional activity on the island, ensuring smooth and hassle-free adaptation to their new home: Gran Canaria. The guide places a firm emphasis on providing practical information from the viewpoint of relocated employees, expatriates, professionals and remote workers, facilitating their arrival on the island and minimising uncertainties in a relocation process which on many occasions includes family members and children.
Gran Canaria is a leading destination for global business and research projects, but it also offers a series of advantages that make it a unique destination to pursue a personal and family life with every guarantee of success and personal satisfaction. With its combination of quality infrastructure, digital connectivity, cost of living, climate, healthcare and legal security, Gran Canaria is an international hub where professional development and the pleasure of disconnection go hand in hand.
SPEGC has years of experience providing assistance for projects and people wishing to establish a base in Gran Canaria. This guide draws on this knowledge to propose a novel way of approaching the soft landing process in Gran Canaria. The document includes a unique Reading Guide with a recommended checklist of tasks and formalities before, during and after settling on the island (visas, identification documents - NIE, social security, municipal registration, taxes, etc.), along with advice and solutions for all the typical matters that must be dealt with by families planning to relocate in Gran Canaria (housing, areas to live, health, transport, etc.). It is an extensive yet practical compendium of all the technical, legal and administrative matters that professionals and their families encounter during the relocation process: although it offers very detailed information, the Reading Guide provides users with quick access to the knowledge they may need at any given moment. The technical information is grouped according to different profiles, whether workers moving for a short period of time or indefinite/long-term relocations. In addition, the guide has a dynamic and user-friendly approach that makes it easy to read, as well as including a printable checklist to facilitate the follow-up of pending tasks.
In pursuit of its mission of stimulating and promoting local economic development, the SPEGC and 'Best in Gran Canaria' place emphasis on accompanying and supporting professionals who choose Gran Canaria to pursue their life projects. Gran Canaria is an open, globally connected destination renowned for its hospitality and cosmopolitan lifestyle.
SPEGC also offers training activities in areas such as entrepreneurship, innovation and internationalisation, as well as an advisory service for companies establishing themselves on the island and support for business creation and consolidation initiatives.
‘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.