--- title: "Canary Islands Tax Advisor \u2014 ZEC, RIC, DIC, IGIC, REF | Accounting Spain" description: "Specialists in the Canary Islands Economic and Fiscal Regime (REF): 4% Corporate Tax under ZEC, up to 90% RIC reserve, IGIC and DIC. Tax advisory for businesses and self-employed in the Canary Islands. Initial consultation, no commitment." canonical_url: "https://www.accountingspain.com/en/canary-tax-advisor/" last_updated: "2026-04-26" --- [Home](/en/) / Canary Islands tax Specialised service # Canary Islands *tax advisor* 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. Request consultation See services 4% Corporate Tax under ZEC 90% RIC base reduction 7% IGIC vs 21% VAT 45% DIC deduction REF instruments ## The instruments of the *Canary regime* Legal framework approved by the European Commission. In force indefinitely. 4% ZEC — Canary Islands Special Zone Corporate Tax at 4% for eligible companies, compared with the standard 25% rate. Regime approved by the EU. 90% RIC — Reserve for Investments Reduces up to 90% of the Corporate Tax base by reinvesting profits within the Canary Islands. 7% IGIC instead of VAT Standard rate of 7% versus the 21% mainland Spanish VAT. A direct competitive cost advantage. 45% DIC — Investment Deduction 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. What we do ## Specialists in the *Canary REF* The Canary Islands tax regime is not just another option — it is a set of planning instruments that demand deep technical expertise. IGIC ### IGIC management 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. ZEC ### ZEC setup and management Eligibility assessment, application to the ZEC Consortium, compliance with investment and employment requirements, and ongoing tax management at the reduced 4% rate. RIC ### Reserve for Investments RIC planning and provisioning, control of materialisation deadlines (3 years), documentation of investments and coordination with DIC to maximise combined savings. DIC ### Canary Islands Investment Deduction Identification of eligible investments, calculation of the 25%–45% deduction on Corporate Tax due, and joint planning with RIC to avoid incompatibilities. REF ### REF allowances 50% Corporate Tax allowance for companies producing tangible goods, incentives for shipping companies, transfer-tax exemptions and sector-specific benefits. CIT · IRPF ### Corporate & Personal Income Tax 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). Why the Canary Islands ## The *tax advantage* in numbers 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 Methodology ## How we *work* with you We do not apply generic solutions — we design strategies that maximise the REF instruments for your specific case. 1 #### Tax diagnosis We analyse your activity, structure and figures to identify which REF instruments apply and quantify the real saving potential. 2 #### Tailored strategy We design a plan combining ZEC, RIC, DIC and IGIC in a compatible and optimal way, with an implementation roadmap and timeline. 3 #### Implementation We handle all the paperwork — from the ZEC application to quarterly IGIC returns — with full legal certainty. 4 #### Ongoing support Continuous accompaniment: regulatory changes, new opportunities and an annual review of your strategy with your assigned advisor. Frequently asked questions ## What people *ask us* Is the 4% ZEC corporate tax rate legal? Isn't it tax avoidance? It is fully legal. The ZEC is a regime approved and supervised by the European Commission, established under Spanish Law 19/1994 (REF) and backed by the Spanish State. It is not a tax haven: it is an economic development policy designed to compensate for the geographic isolation and outermost-region status of the Canary Islands. More than two decades of operation confirm its legal soundness. Can my company qualify for ZEC if it already operates in the Canary Islands? ZEC is designed for newly created companies or new business activities in the Canary Islands. An existing company cannot transfer its historical activity to ZEC, but it can incorporate a new entity or open a new line of business under the regime. We carry out an eligibility assessment before making any recommendation. Are RIC and DIC compatible? Can I use both? RIC and DIC are compatible with each other, but not on the same investments. RIC reduces the taxable base; DIC reduces the tax due. Good planning splits investments so that each one is matched with the most advantageous instrument according to its nature and the company's tax profile. Do we charge IGIC or VAT if we also sell to mainland Spain? It depends on the type of operation and where the supply is deemed to take place. The IGIC-VAT boundary is one of the most complex aspects of the Canary regime. Goods delivered to the Canary Islands carry IGIC; supplies to mainland Spain are treated as "exports" to the VAT territory. Each case must be analysed individually. Do I need to move my tax residence to the Canary Islands? For ZEC, at least one director must be a tax resident in the Canary Islands. For RIC and DIC, the company simply needs to have its tax domicile in the Canary Islands and the investments must be materialised on the islands. For IGIC, the obligation arises from carrying out economic activity in the Canary territory, regardless of residence. How much can my company save by applying the REF? It depends on your activity, profits and investment capacity. A company with €500,000 in profit that combines ZEC, RIC and DIC can reduce its effective tax burden to below 5%, compared with the standard 25% Corporate Tax. The first consultation is no-commitment and we quantify the real saving for your specific case. Get started ## How much are you overpaying *without knowing it?* 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. Request initial diagnosis [info@accountingspain.com](mailto:info@accountingspain.com) +10 Years of experience 100% Regulatory compliance 48h Guaranteed response ZEC Certified specialists ## Let's talk about your *case* Tell us your situation and we will reply within 48 hours with an initial assessment of your tax-saving potential under the Canary REF. [info@accountingspain.com](mailto:info@accountingspain.com) [+34 621 39 25 84](tel:+34621392584) Lanzarote, Canary Islands & all of Spain (online service) [ Message us on WhatsApp ](https://wa.me/34621392584?text=Hi%2C%20I%20would%20like%20a%20consultation%20about%20Canary%20Islands%20tax%20(REF).)