Canary Islands | Favorable Tax Conditions

The business world can be cut-throat and if you are not aware of what needs to be done or where it needs doing you can quickly get swallowed up and spat out, which is why knowing everything there is to understand about how to best run your company from a tax perspective is a must.

Each country has varying percentages of interest and tax rates that need to be adhered to with regulations adjusted according to particular situations and specifics related to residencies and employment clauses.The islands of benefits

Many places have tax advantages that work for large corporations and businesses and the Canary Islands is one of those places. Other than the gorgeous locations, sunshine and great weather all year round, amazing coastlines and beaches, great local cuisines, and an amazing culture, there are also a great deal of positives the Canary Islands have to offer regarding your taxes.

The islands offer the quality of infrastructure evident throughout Europe, and these infrastructure services allow businesses to access not only global markets with full connectivity, but also the upside of an exceptional workforce. Furthermore, as one of Europe’s outermost regions, the Canary Islands have an Economic and Tax System, that has been fully approved by the EU, and which applies double taxation conventions and fiscal transparency. The Canaries offer the lowest corporate tax rate in Europe and the highest refundable R&D incentives on the planet. It is no wonder, therefore, that the economic and financial industries are more inclined to embrace the islands’ enhanced financial lifestyle.

If you’re looking for the best place to do business, be sure to visit Canaryislandshub, where business enhancement is prioritized and the European lifestyle of quality infrastructure is encouraged.

Reasons why you should bring your company to the Canary Islands

For several decades only a small percentage of companies have been able to discover the good economic situation and the improvement in quality of life that the Canary Islands offer with their low taxes, benefits, and incredible locations.

Fortunately times have changed and so have communication technologies, which has resulted in more than 700 international businesses from the audiovisual, video games, astrophysics, ICT, outsourcing, marine services, and renewable energies, among others, realizing that locating their business in the Canary Islands was an excellent option to enjoy the pleasure of an idyllic location with an enviable lifestyle and better taxes than most European countries.

However, it is always necessary to do some research and not necessarily jump in with both feet, so getting as much information as possible is key before moving your company.

Here are some tips to keep in mind when it comes to the options offered by the islands, some you may not have considered important but which play a vital role in the long run;

Tax Benefits – lowest corporate tax rate in Europe, just 4%, compared to the European average of around 20%.The Canary Islands also have the lowest VAT rate in Europe at 7%.

Business Incentives – The Canary Islands have become the ideal location for all type of R&D projects for wide range of business sectors, they offer the highest refundable R&D and audiovisual incentives on the planet’ of up to 75,6%.

Canary Islands as a tri-continental platform – The Canary Islands are a Spanish archipelago, belonging to its outermost regions, located in the Atlantic Ocean, a few kilometers from the coasts of Africa and a few thousand kilometers from the coasts of America. This geographical location is unique and privileged, as it allows the creation of commercial, cultural and tourist links between Europe, Africa and America.

Internet speed – Managing your finances remotely is easier done when you have a strong internet connection, a functioning network makes zoom calls and setups simpler and more efficient.

Weather & Beaches – Thankfully, safely storing your finances on tropical remote Islands comes with the advantage of great scenery. Who doesn’t love a beach vacation when conducting business?

Attractive destination for professionals worldwide – The advantages offered by the Canary Islands are key to attracting talent from all over the world. Who wouldn’t want to work in paradise? More and more professionals are choosing to come to the Canary Islands, creating a growing community of digital nomads. In addition, the Canary Islands have been ranked by Airbnb among the top 20 destinations for digital nomads.

As a location that offers business stability, the Canary Islands are considered the top pro-business region. And, essentially positioned in the center of the world you have the gateway to both the air and sea transportation links, with an unmistakable communications infrastructure for global connectivity, and the year-round sunshine doesn’t hurt either.

A final tax thought

Locations, where taxes are lower, are highly sought after for businesses and corporations to secure finances and make wise investment decisions, and the Canary Islands is at the top of the corporate option list. One of the main advantages is the transparency and the economic and fiscal incentives that are fully approved by the European Commission. The islands don’t only offer a great health and education system but promote an affordable, yet competitive standard of living while enjoying the best weather and climate in the world.