Establish your business in
Gran Canaria

Useful Information

Establish your business in Gran Canaria

OPENING A COMPANY

Set up a company in Gran Canaria: To incorporate a company in Spain may take some time due to;

(i) the time required to open a bank account and
(ii) the register of the incorporation public deed in the Spanish Commercial Registry.

The steps to set up a company in Canary Islands should not defer to those necessary in the mainland. Please find below such steps on a high-level basis.

STEPS TO OPENING A COMPANY...

1) To reserve the corporate name of the company. You should send three potential corporate names to the Spanish Central Commercial Registry.

This institution will review whether or not the requested names already exists and will grant a reserve for such name during a maximum of 6 months (once you incorporate the entity you will keep the name during the life of the company). This process can be done easily by a Spanish public notary.

2) Once you have the name you need to open a bank account and to put an amount of 3,000 euros in the case that you are incorporating an S.L. (minimum share capital). In the case of an S.A., the minimum share capital is 60,000 euros and you have to put 15,000 euros in the bank account with the engagement of put additional 45,000 euros up to 60,000 euros in the following 5 years since the incorporation.

Once the money is in the bank account the bank will issue a certificate that you need to give to the public notary.

3) Incorporation public deed before the Spanish public notary.

4) Register of the deed in the Spanish Commercial Registry.

WHAT YOU NEED TO KNOW ABOUT THE ZEC ZONE

As part of the Canary Islands Special Zone (ZEC), Gran Canaria offers some serious tax incentives to investors who establish a company based on the island.

It’s one of Europe’s most generous tax regimes and a heavyweight option for anyone looking to invest their capital in a tax-efficient manner.

These include 4% corporation tax, multiple tax exemptions, as for example on the distribution of the dividends.

Gran Canaria is also covered by the Canary Islands Economic and Tax Regime, which offers a generous set of tax exemptions for international businesses based on the island.

BASIC REQUIREMENTS OF A ZEC ENTITY

A ZEC company must be a new corporate entity based in the Canary Islands. At least one of the directors must reside in the Canary Islands. A ZEC entity must make a minimum investment of 100,000 euros in Gran Canaria in fixed assets within the first two years. This investment can be in Gran Canaria property.

ZEC companies must create 5 full-time jobs in Gran Canaria during the first six months, and maintain this average work- force on an annual basis. ZEC entities must operate in a long list of permitted sectors or service industries.

HOW DO I TRAIN MY WORKFORCE IN GRAN CANARIA?

The Universidad de LPGC in cooperation with the SPEGC organizes and encourages a wide variety of courses in different areas: Information technologies, Undertaking, Tourism and Audiovisual. Tailored courses can be arranged depending on the company needs.

HOW DO I FIND A TALENTED WORKFORCE IN GRAN CANARIA?

The island has its own university and a dep pool of talent that is often under-employed. Most jobs are advertised by word of mouth of online so we advise employers to make contact with as many people working in their field as they can. Coworking spaces are an excellent place to advertise jobs as they tap you into the island’s entrepreneurial circles.

TAX AND INVESTMENT CONCESSIONS

Gran Canaria is one of the Canary Islands, an autonomous region forming part of Spain and, therefore, of the European Union.

As it is a fully integrated territory, the applicable legal system is that of Spain and the European Union.

Moreover, its own special Economic and Fiscal Regime, entirely compatible with European regulations, offers reduced taxation on company profits and on consumer goods as well as access to other incentives to business investment.

GENERAL TAX INCENTIVES

• Canary Islands Special Zone (ZEC).
Businesses set up within the ZEC are subject to a reduced level (4%) of corporate tax.

This option is particularly attractive to investors from other countries as no withholding tax applies to repatriation of dividends nor on the payment of interests to their headquarters.

• Tax deduction for the production of material assets.
This incentive offers a 50% reduction in company tax, applicable to businesses producing agricultural, livestock, fishing and industrial goods.-Indirect Canary Islands Tax (IGIC).

This is similar to VAT but specific to the Canary Islands, with notably lower charges. Its standard rate is 7%.

• Special taxes.
Taxes on alcoholic drinks, tobacco, fuel and certain modes of transport are significantly lower than in the rest of the European Union.

TAX INCENTIVES FOR INVESTMENT

• The Canary Islands Investment Reserve (RIC).
With this incentive the tax burden can be reduced by up to 90% of the company’s profits, always provided that certain investments linked to the growth of the company are made.

• Deduction for investment in fixed assets.
This means a reduction of company tax equivalent to 25% of the amount destined for the acquisition of fixed assets.

• Greater deductions in company tax in comparison with the general Spanish system, for investments and expenses in activities such as:

- RD&I (32%-45%)
- National audiovisual productions (38%-40%)
- International audiovisual productions (35%)

INVESTMENT AID

Business investments made in Gran Canaria are eligible for subsidies and other national and regional financial instruments aimed at financing productive investment, RD&I, environmental improvements, training and recruitment.

Sara's Story

X person has been a remote worker for Y years, they have travelled the world and has chosen to base themselves in Las Palmas de Gran Canaria. See their story and learn why they chose our island.