THE ISLAND OF TENERIFE IN SPAIN, EUROPEAN DESTINATION WITH GREATEST TAX BENEFITS FOR REMOTE-FRIENDLY COMPANIES

  • Tenerife is growing with tourism, even beyond tourism. Since 2012, the largest of the Canary Islands has been gathering and implementing strategies to attract investments from companies and remote workers on the Why Tenerife? platform.
  • High standards of living at low costs, the European framework for legal safety, connectivity and a wide range of entertainment and community options are some of the advantages Tenerife offers to remote workers and companies in search of flexible work arrangements.

Santa Cruz de Tenerife

The COVID-19 pandemic has given a significant boost to teleworking, leading companies to search for new horizons in the process. The firms interested in talent engagement and retention by means of remote work are known as ‘remote-friendly companies’. Workers, for their part, are looking for better, more flexible work arrangements and improvements in their quality of life.

Today, traditional business travel destinations face a new scenario in which remote workers and investors are beginning to look for new, better locations. In the new scenario, only 25 per cent workers are expected to return to offices in areas like the City of London.

Tenerife, the largest of the Canary Islands, has been developing and implementing strategies to promote the destination among remote workers and attract foreign investors for almost a decade. The pandemic has only accelerated what was already happening on the island thanks to an action plan for economic diversification in which both the public and the private sector were involved. The foreign population plays a key role in the local economy, accounting for 4.3 per cent employment locally. Moreover, 229 international companies operate in the island, creating 13,000 jobs for locals.

Telecommuting has come to stay. In fact, some investment fund managers are increasingly basing their investment decisions in part on the arrangements made by firms to let people work from home.

MAIN BENEFITS FOR TELECOMMUTERS AND REMOTE-FRIENDLY COMPANIES IN TENERIFE:

Tax benefits: Best tax regime in Europe. Tenerife belongs to the Canary Islands Special Zone (ZEC), where the corporate income tax rate has been reduced to 4 per cent – way below the Spanish rate, at 25 per cent, or the average for the EU – and the value-added tax (VAT, called IGIC here) is 6.5 per cent. The Canary Islands have a unique financial and tax regime in Europe that is transparent, perfectly legal and compliant with EU regulations.

Connectivity for people, goods and data: Strategic location at the global level. There are two international airports and international ports in Tenerife with a high level of activity. In just two hours, you can be in the main European capitals by plane.

Connectivity infrastructure on the island includes one of Spain’s most powerful computers – the Teide-HPC supercomputer –, a TIER III+ data centre, high-capacity submarine communications cables connecting Tenerife to Europe and West Africa, and the world’s first neutral cable landing station.

Talent and qualified professionals. In Tenerife, investors and entrepreneurs can find creative and qualified talent, flexible enough to adapt to the needs of a competitive, knowledge-based economy. Tenerife is a multicultural island, with 110,000 foreign nationals living in it.

Improved quality of life. Tenerife offers lots of interesting leisure and entertainment options, and the chance to work in a natural paradise with a mean annual temperature of 23º C, surrounded by state-of-the-art technology and infrastructure.

In Tenerife you can have 3000 hours of sunshine a year, a coastline over 340 kilometres long, and gems in the landscape department like Teide National Park.

Low cost of living. When compared to other European cities and most places in North America, Tenerife boasts a really low cost of living. The rent for a three-bedroom flat in the city centre is €936,35 – less than a third of the rent you would pay in Miami or Dublin.

Local science and technology park ecosystem. Tenerife has state-of-the-art scientific facilities and top research centres in fields such as biomedicine, astrophysics, renewable energy, volcanology, environmental management, and marine sciences.

Tenerife Work&Play: Working in an alluring destination. Spain is among the top ten start-up destinations in the world in terms of standards of living. In the heart of the EU, Tenerife, is a start-up heaven, offering more than 20 coworking spaces in a wide range of prices, locations and fields of expertise, where you can work in a creative and participatory environment. Tenerife Work&Play offers startups and remote workers services like webinars, talent engagement and development, business acceleration, introduction to remote work, personal branding, marketing, online meetings with coworking spaces and company centres, etc.

About Why Tenerife

“Where business meets life”

Why Tenerife offers free and confidential personal consulting services to investors, firms and entrepreneurs interested in setting up their business in the island, thus becoming more competitive. The services offered can be adapted to each investor’s needs, depending on the stage they are in, whether they are considering to settle or they are already present in the island.

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