Specialised service
The Canary Islands Economic and Fiscal Regime (REF) is one of the most favourable tax frameworks in the European Union. Few advisors truly master its instruments. We do.
Legal framework approved by the European Commission. In force indefinitely.
Corporate Tax at 4% for eligible companies, compared with the standard 25% rate. Regime approved by the EU.
Reduces up to 90% of the Corporate Tax base by reinvesting profits within the Canary Islands.
Standard rate of 7% versus the 21% mainland Spanish VAT. A direct competitive cost advantage.
Up to 45% deduction on the Corporate Tax due for productive investments in the islands.
More than two decades in force. Compatible with standard Spanish taxation.
The Canary Islands tax regime is not just another option — it is a set of planning instruments that demand deep technical expertise.
Tax registration, quarterly returns (Form 420), special regimes and resolution of the IGIC-VAT boundary for companies operating across mainland Spain and the Canary Islands.
Eligibility assessment, application to the ZEC Consortium, compliance with investment and employment requirements, and ongoing tax management at the reduced 4% rate.
RIC planning and provisioning, control of materialisation deadlines (3 years), documentation of investments and coordination with DIC to maximise combined savings.
Identification of eligible investments, calculation of the 25%–45% deduction on Corporate Tax due, and joint planning with RIC to avoid incompatibilities.
50% Corporate Tax allowance for companies producing tangible goods, incentives for shipping companies, transfer-tax exemptions and sector-specific benefits.
Annual tax close with integrated application of all Canary incentives, filing of Form 200 (Corporate Tax) and Form 100 (personal income tax for self-employed), and defence before the Spanish Tax Agency (AEAT).
A company with €500,000 net profit in the Canary Islands can pay a fraction of the tax it would pay for the same activity in Madrid, Barcelona or Valencia.
| Tax / Regime | Canary Islands (REF) | Madrid | Catalonia / Valencia |
|---|---|---|---|
| Corporate Tax under ZEC ZEC | 4% | 25% | 25% |
| Standard Corporate Tax (no ZEC) | 25% | 25% | 25% |
| RIC base reduction RIC | Up to 90% | Not available | Not available |
| DIC deduction (on tax due) | 25%–45% | Not available | Not available |
| Indirect tax (consumption) | IGIC 7% | VAT 21% | VAT 21% |
| Transfer tax (second-hand property) | 6.5% | 6% | 10% |
| Inheritance tax (direct relatives) | 99.9% exemption | Reduced | Progressive, high |
We do not apply generic solutions — we design strategies that maximise the REF instruments for your specific case.
We analyse your activity, structure and figures to identify which REF instruments apply and quantify the real saving potential.
We design a plan combining ZEC, RIC, DIC and IGIC in a compatible and optimal way, with an implementation roadmap and timeline.
We handle all the paperwork — from the ZEC application to quarterly IGIC returns — with full legal certainty.
Continuous accompaniment: regulatory changes, new opportunities and an annual review of your strategy with your assigned advisor.
The first consultation is no-commitment, no fine print. In 30 minutes we tell you whether the Canary REF can materially change your tax burden.
Tell us your situation and we will reply within 48 hours with an initial assessment of your tax-saving potential under the Canary REF.