INCENTIVES

Investment in Tenerife is attractive not only because of its unique natural conditions and dynamic economic environment, but also because it is a destination that enables the creation and development of companies with aid and structured subsidies in different areas, among which the most outstanding are:

Regional incentives

The Canary Islands are one of the European regions with the highest aid intensity for the European Union’s Regional Incentives (35% for large companies, 45% for medium-sized companies and 55% for small companies). The support is aimed at the creation of innovative and technology-based companies (R&D&I) and, in general, industrial design and environmental improvement.

European funds also help development within certain limits: large companies 50%, medium-sized companies 60% and small companies 70%.
Los fondos europeos también ayudan al desarrollo con ciertos límites: Gran empresa 50%, mediana 60% y pequeña 70%.

Deduction of 45% for R+D+i

Tenerife offers a 45% Corporate Tax deduction, both for investments in Research and Development and technological innovation, including the development of video games, compared to 32% in Spain.

Audiovisual Sector

The Canary Islands REF increases by 20 percentage points the deductions of the Corporate Tax Law for audiovisual productions and by 80% the limits. Therefore, in the Canary Islands the incentive for foreign and Spanish productions goes from 30-25% to 50%-45% deduction and in some cases increases to 54% deduction on the first million euros. Both incentives have a limit of 36 million euros of refund for feature films and 18 million euros per chapter for series.

In addition, audiovisual works, except for advertising, which are made through production services, are eligible for 0% IGIC and no VAT.
Además, las obras audiovisuales, excepto la publicidad, que se realicen a través de service de producción, pueden optar al 0% de IGIC y sin IVA..

Subsidies for job creation

In particular the hiring of unemployed people and those with the greatest difficulties in finding work.

Corporate Assets

The taxpayers of the Corporate Income Tax will apply a 50% rebate of the gross tax liability corresponding to the income derived from the sale of tangible goods produced in the Canary Islands by themselves, proper of agricultural, livestock, industrial and fishing activities, provided that, in the latter case, the deep-sea fishing is landed in the Canary Islands ports and is handled or transformed in the archipelago. Persons or entities domiciled in the Canary Islands or in other territories that are engaged in the production of such goods in the archipelago, by means of a branch or permanent establishment, may benefit from this allowance. Se podrán beneficiar de esta bonificación las personas o entidades domiciliadas en Canarias o en otros territorios que se dediquen a la producción de tales bienes en el archipiélago, mediante sucursal o establecimiento permanente.

Patent Box

Spain was one of the first countries to implement a mechanism to promote the sale or commercial exploitation of patents and any form of intangible asset.

SODECAN

The Canary Islands Economic Development Company is actively involved in financing viable and innovative business projects in Tenerife.

Technological Fund: ICEX-Invest In Spain

Encourages the development of new R+D activities by foreign capital companies that are already established or are planning to set up in Spain.

Internationalisation

Más allá de las ayudas y servicios del ICEX y Proexca, existen deducciones especiales para entidades domiciliadas en Canarias que realizan inversiones en territorios de África Occidental y que realizan gastos de promoción y publicidad, lanzamiento de productos, apertura y prospección de mercados en el extranjero, y asistencia a ferias o eventos de similar índole.

Tenerife Chamber of Commerce

The Chamber of Commerce, Industry, Services and Navigation of Santa Cruz de Tenerife is a differential instrument when dealing from Tenerife with markets in Latin America and especially in Africa.