Tenerife has significant tax benefits within Spain and the European Union. Its differentiated economic and tax system, permanently included in the legal framework of the European Union, guarantees exceptional conditions for investment and trade.
The Canary Island Economic and Tax Regime, renewed for the period 2014-2020, includes the following advantages among others:
Reduced tax rate of 4% with respect to corporate income tax, as opposed to the national 25% or 21.3% average in the European Union.
Canary Islands General Indirect Tax (IGIC), tax largely based on VAT, with a general rate of 7%.
: A deduction of up to 90% on the undistributed profit.
Limited space for storage, handling or transformation of goods, regardless of origin, destination, quantity or nature. It offers advantages in terms of administrative processing, tariffs and taxes, fully compatible with other incentives such as those of the Canary Islands Special Zone (ZEC) or the Canary Islands Investment Reserve (RIC).
Taxation at a fixed rate of 24% up to 600,000 euros of taxable base for foreigners displaced to Tenerife for work or as administrators.