Setting up your business in a strategic and financially thought-out location is essential for long-term success. When it comes to the Canary Islands, you can’t go wrong. Not only do the islands offer stunning landscapes and crystal-clear waters, but they are also considered one of the best places in the world for doing business.
Business in the Canary Islands
The Canary Islands’ economy is primarily based on tourism and hospitality, with over 12 million tourists and foreign visitors per year. With a thriving economy, it only makes sense to go where there is a booming market. Known as a reduced tax location in the business world, the Canary Islands are a wise choice for investment.
The archipelago offers many advantages for professionals who want to set up their businesses. These include excellent connectivity, a highly skilled workforce, security, first-class healthcare, and more. The Special Zone (ZEC) is a favorable tax zone that exempts companies across different sectors and offers the highest refundable R&D and audiovisual incentives on the planet. If you’re looking to save money, investing in the Canary Islands is a smart choice.
Many top corporations, large conglomerates, and up-and-coming entrepreneurs have seen the advantages of doing business in the Canary Islands. The area boasts top-quality infrastructure and services and offers not only an exceptional and well-skilled workforce to boost your brand but also access and full connectivity to global markets. The top industries that have settled in the Canaries in recent years include marine services, the audiovisual industry, ICT, outsourcing, astrophysics, video games, aeronautics, aerospace, and renewable energies.
Some successful businesses that have moved to the Canaries include Atos, which was awarded a 3-4 year contract to run the Primary Service Desk for Transport for London, Birdland Studio, which produces and distributes children’s and teen content on YouTube or Amazon, US mission Artemis, which has sent aspiring astronauts to get special training in Lanzarote, Marvel, which chose to film ‘The Eternals’ in the archipelago, and Atlantis Animation, which produces animated content for the TV series Miraculous LadyBug. These are just a few of the many projects developed in the Canary Islands.
Why is it a favorable tax location?
Starting or setting up a business in the Canary Islands can be very favorable in terms of taxes. At 7%, it has the lowest tax rate in Europe, and it also has the lowest corporate tax rate in Europe, at just 4%, compared to the European average of around 20%.
The plus side of Business in the Canary Islands
Essentially a stone’s throw from Europe, located neatly near the western top of the African continent, the Canary Islands are a must-see destination for holidays, and even better, for business. There are many benefits that the Canary Islands offer companies, making the decision of moving your business to the islands much easier.
- Stable Political Context: The stable political context in the Canary Islands offers improved infrastructure services, excellent communications, and public research organizations and universities benefit from a more substantial budget for research and development projects.
- Tourism Increases Business Prospects: The Canary Islands are undoubtedly picturesque with mild temperatures throughout the year, situated essentially on the equator line, and the natural attractions including the Biosphere Reserve (5 of the 8 islands) have seen a significant increase in foreign visitors over the past decade. This increase in tourism has created more business prospects and opportunities for companies.
- Strategic location: Extremely well-connected by air and sea, as well as conveniently close to Africa and Europe, the Canary Islands provide easy access to global markets. The Canaries offer direct flights to the main capitals in Europe and West Africa.
- Quality of life: The Islands have one of the best climates on the planet, with a year-round average temperature of a balmy 71 °F (22 °C) and over 250 days of sunshine. They offer a multicultural, open, and equal society, as well as well-developed healthcare and education systems, making it a great place to live and work.
- Workforce and talent: The Canary Islands possess solid know-how in key industries and have an excellent workforce to assist the needs of the companies settled in the Canary Islands. Companies can rely on qualified personnel and expertise while operating in this privileged location.
Current Situation and Expansion
There is always an opportunity to start up and register a new business in the Canary Islands in a few simple steps, making it a top spot for enthusiastic foreign entrepreneurs. It also means you have the advantage of expanding an already existing business to make the most of the taxation laws and advantageous taxation percentages.
Make the Canary Islands Your New Business Home
The Canary Islands offer incredible tax advantages and a European quality of lifestyle, while still enjoying the comforts of vacationing in your everyday activities. Conducting business in the Canary Islands is a win-win situation that could lead to long-term success and growth.