The Canary Islands Special Zone is part of a low-taxation regime, which was created within the framework of the Economic and Fiscal Regime of the Canary Islands with the aim of promoting the economic and social development of the archipelago and diversifying its productive structure.
The Canary Islands Special Zone was authorized by the European Commission in January 2000. Subsequently, the Spanish Government has adapted the regulations of the Economic and Fiscal Regime of the Canary Islands in relation to the ZEC, according to the terms of said authorization.
The enjoyment of the benefits of the Canary Islands Special Zone is valid until December 31, 2008, and may be extended with prior authorization from the European Commission. The authorization for registration in the Official Register of ZEC Entities (ROEZEC) has an initial deadline of December 31, 2006.
Entities that intend to develop an industrial, commercial or service activity, included within a list of permitted activities and described in the annex of Royal Decree Law 2/2000, may be installed in the ZEC.
Requirements to become a ZEC entity.
– Be a newly created entity with registered office and effective management headquarters within the geographical area of the ZEC.
– At least one of the administrators must reside in the Canary Islands.
– Make a minimum investment of 100.000 Euros in fixed assets related to the activity within the first two years from the time of its authorization.
– Create at least 5 jobs within 6 months of authorization, and maintain this average for the years it is attached to the ZEC.
– To establish in its corporate purpose the performance, within the scope of the ZEC, of a series of specific activities.
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