What is the Canary Islands special tax?
What is the Canary Islands special tax? Canary Islands Special Zone (ZEC): A special low-taxation system which allows companies from different sectors to pay a special corporation tax rate of 4%, implying a significant fiscal saving if compared to the European Union average of 21.3%. In the rest of Spain, this tax is payable at a rate of 25% for SMEs.
Why are the Canary Islands so special?
Sun, sand and sea aside, the Canary Islands are famous for their rugged natural landscapes, historical significance and diverse cultures. Gran Canaria and Tenerife are the largest Canary Islands, but nature-lovers should visit La Palma and observe breathtaking views from the iconic Tilos Bridge.
Do you pay tourist tax in the Canaries?
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.
What country owns the Canary Islands?
The Canary Islands are the southernmost region of Spain, and the largest and most populous archipelago of Macaronesia. Because of their location, the Canary Islands have historically been considered a link between the four continents of Africa, North America, South America, and Europe.
Why are Canary Islands not in EU?
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.
What is the main source of income for the Canary Islands?
The productive specialisation of the Canary Islands is highly dependent on the tourism sector, which is reflected in the importance of trade, transportation, hotels and restaurants, and recreation (it represents 39.8% of the region's GDP, compared to 28.3% of the Spanish total).
Can you use cash in Canary Islands?
The currency in Gran Canaria is the Euro. Make sure you've got some currency on you when you arrive in Gran Canaria, ready for any cash payments, like tipping. As for plastic, using your debit or credit card on the island is super easy. You can even take a travel money card for extra security.
Why are the Canary Islands a tax haven?
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.
Are all the Canary Islands tax free?
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 ...
Do you need cash in Canary Islands?
The Canaries use the Spanish currency of the euro (€1 EUR). Since the euro to U.S. dollar exchange rate fluctuates often, be sure to. Major credit cards are accepted at most restaurants and shops.