Atractive fiscal and economic incentives

While the Spanish Tax System is applied to Gran Canaria, the island’s “special status” within the European Union permits it to have reduced direct and indirect taxation as well as various fiscal incentives and economic aid for business investment.

Reduced Taxation

• Canary Islands Special Zone (ZEC). A low Corporation Tax Zone (4%) that promotes the establishment of new businesses, conditional upon minimum levels of investment and job creation.
• Discount for production of tangible assets. An incentive that offers a 50% reduction on tax liability on profits attributed, to production and industrial activities.
• Canary Islands General Indirect Tax. A tax that is similar to VAT but specific to the Canary Islands and with lower applicable rates. The general rate is 5%.
• Special taxes. The taxes on fuels, alcoholic drinks, and certain types of transport are significantly lower than those in the rest of the European Union.
• Gran Canaria Free Zone. A customs-free zone in which goods can be stored, transformed and distributed for an unlimited period of time without the imposition of tariffs or taxes.

Fiscal Incentives for Investment

• Canary Islands Investment Reserve (RIC). An incentive that reduces the tax burden on up to 90% of company profit if it is allocated to certain investments linked to the growth of the activity.
• Deduction for investments in Fixed Assets. An incentive that provides a 25% deduction on the taxable amount of investments in fixed assets.
• Greater deductions, related to the Spanish general tax regime, for investments in activities such as R+D+i, vocational training and Information Technologies.
• Exemptions from indirect taxation (Canary Islands General Indirect Tax and Property Transfer Tax and Stamp Duty) on certain investments linked to business growth.

Direct Financial Aid

The activities performed by companies located on the island can benefit from a range of direct financial aid.

• Investment Aid to co-finance productive investment can be as high as 40% of the investment.
• Employment Aid subsidises the social security contributions and the training of certain groups of workers.
• Aid for Research, Development and Innovation is available through a wide range of instruments that co-finance R+D+i projects.
• Other sector-specific instruments and incentives for business funding.