A 4% rate, with conditions
The Canary Special Zone (ZEC) is a regime authorised by the European Union that allows qualifying entities to pay just 4% corporate tax on the portion of their tax base corresponding to eligible operations — well below the general national rate.
Main requirements
The entity must be newly formed, with its registered office and effective management in the Canary Islands, have at least one resident director, carry out an activity included in the list of eligible sectors, and meet minimum investment and job-creation thresholds within the first months of activity — higher on the capital islands.
How to apply
A descriptive report of the project is submitted to the ZEC Consortium, which issues the prior authorisation; the company is then formed and registered with the Official ZEC Entities Registry. Getting the sequence right matters, because the company must be created after the authorisation, not before.