Is Lanzarote a tax haven?

Lanzarote, in particular, is a low-tax haven within the EU that offers a high quality of living and a strong tourism industry that creates a diverse and dynamic economy. This combination of factors has made Lanzarote one of the least expensive yet highest-quality places to live in the world.



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Lanzarote, and the rest of The Canary Islands are duty free, therefore most countries apply limits as to what can be brought back after a visit. The temptation, particularly with cigarettes and tobacco, is to take back more than the allowance, because some big profits can be made as the cost saving is significant.

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Lanzarote's Cost of Living versus Mainland Spain On average rent prices are 23% less than in mainland Spain. Generally Lanzarote's consumer prices are 21% lower than Spain. Prices in Lanzarote restaurants are 27% lower than mainland Spain. Prices in Lanzarote's supermarkets are generally 14% lower than Spain.

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As an example, the Canaries are not part of the European VAT but instead they have a local consumer tax with a standard rate of 7% (much lower than the minimum 15% rate set by EU to each of their member states), besides this, without a doubt, the principal attraction for investors is that the region has by far the ...

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The canaries are an EU tax haven, although not in the traditional sense: this jurisdiction, part of Spain, makes available many tools for tax planning of known companies. First, the Canaries tax system is easier and with lesser tax burden than other European countries, fully legal and authorized by European Commission.

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The Canary Islands are thus a tax haven, fully legal in terms of tax advantages, mainly for the so called ZEC, a norm providing great exemptions for those who wish to open an offshore company, according to law requirements.

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Very High Rental Potential: Long and Short Term Another great benefit of buying property in Lanzarote is the high rental potential. With so many tourists visiting the island each year, there is a high demand for holiday rentals.

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For non-residents of the EU, the tax rate is 24%. Example: If the cadastral value of the property is 200.000 Euros and the taxable base is 2.200 Euro (1.1% as mentioned above). In this situation, if you are resident in the EU, tax = 19% X 2.200 Euro = 418 Euro.

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However, they actually are in the EU as they're a part of Spain, and come under EU laws. But, their situation can be quite confusing. While the Canary Island are a part of Spain, and indeed controlled by the Spanish central government, we also have our own political management as well.

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Currently the Canary Islands doesn't have a tourist tax, but there are ongoing in-depth talks about whether one should be introduced, how much it would be, and how to implement it.

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Lanzarote Duty Free is a big shopping centre in the airport, where you can find duty free items which include perfumery, beverages, food, accessories, and leather goods.

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There are exceptions depending on whether or not you are a resident of Spain and which region you are in. The regional government announced the end of wealth tax in Andalucia as of the 2023 tax year. The only other region where paying Wealth Tax is exempt is Madrid.

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The Climate is Amazing in Lanzarote Practically All Year Round. Lanzarote island life is probably made for you if you hate winter and you are always trying to escape the cold. Here in Lanzarote the lowest daytime temperature level is around 23 ° in winter so even winter resembles spring!

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So what makes moving to Lanzarote a popular choice for those seeking a new life abroad. One of the key factors is of course climate. The Canary Islands offer sunshine all year round and Lanzarote boasts a low level of rainfall, making it possible to enjoy an outdoor lifestyle all year round.

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Even if you own a property in Spain, you're still entitled to stay for only 90 days in a 180-day period without applying for a residence permit or a visa.

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