There are several benefits of starting a business in the Canary Islands. The islands’ convenient position between the Americas and Europe/Africa is perhaps the most important of these advantages for business purposes.
Several budding entrepreneurs hire cheap movers near me every year to relocate the business to the Canary Islands and make the best out of the available opportunities.
Location is essential, but it means nothing if you cannot get there. That’s why there are not one but two international airports in Tenerife, which served more than 45.28 million people in 2018.
As a European firm, you may continue to run your operations under the same regulatory framework as in Europe, simplifying business in Africa.
Tenerife Offers Many Financial Rewards for Your Investment
The Canary Islands are a European periphery territory. Hence, they have their own economic and tax system (REF for its initials in Spanish). Consequently, this plan provides significant tax benefits compared to the rest of the European Union.
- The REF is one-of-a-kind throughout Europe since it is legitimate, open, and compliant with EU rules.
- Canary Islands Special Economic Zone (ZEC for its Spanish initials) provides a unique mix of low taxes.
- Because of its strategic placement, it may be possible to enter the Free Trade Zone (FTZ).
- In contrast to the rest of the EU, where VAT tax ranges from 15% to 27%, the Canary Islands use a lower VAT of 6.5%, called the IGIC.
- The Reserve of Investment in the Canary Islands is available to individuals and corporations (RIC).
- Financial incentives for R&D are available to IT firms as well.
- The corporate tax rate in the Canary Islands is the lowest in Europe at only 4%, and the islands fully comply with all international criteria for tax transparency.
- Furthermore, organizations like INtech provide additional resources for tech firms looking to set up shops in Tenerife, including tax breaks, property, and office space.
A Paradise for Entrepreneurs and Creative Thinkers in Tenerife
In terms of the finest places to “Live, work, and enjoy life,” the Nomad List rates Tenerife at number twenty-one. It’s easy to see why. Because the island not only offers a good quality of life and provides you with all the essentials for running a successful business.
The Canary Islands have a year-round mean temperature of 22 degrees Celsius (71.6 degrees Fahrenheit), earning them the nickname “the Land of Eternal Spring.”
The islands provide a high quality of life, renowned across the globe for their pleasant weather, delicious food, rich culture, easy access to other countries, affordable costs of living, and low operating expenses, making it an attractive location for businesses looking to keep their employees.
The island of Tenerife has a lot to offer forward-thinking business owners and entrepreneurs, whether they are just starting or want to grow.
Tenerife’s Life-Changing Perks
The Canary Islands have been called “The California of Europe,” “The Fortunate Islands,” and “The Islands of Eternal Spring” throughout history. When you think that 22 degrees Celsius (71.6 degrees Fahrenheit) is about what they get all year round, you can see why this isn’t too shocking. UNESCO calls these islands “the finest location in the globe to live” by UNESCO.
Mount Teide, a symbol of the island’s volcanic heritage, is blanketed in snow throughout the winter and encircled by clouds. We should start our explorations here in the countryside. The woodlands and nature preserves are excellent places to begin. That’s not so horrible.
Clear, calm waters ideal for surfing, tall dunes of black sand, towering cliffs on all sides — this beach has it all. Really, what more do you need? Aside from the fact that you can eat them all year long, there is not much better. Now you understand.
This is history inside its purest form, from the quaint seaside towns to the colonial settlements that have managed to keep early modern buildings in pristine condition.
Unrivaled dining options include the many regional specialties from around Spain and the island’s distinctive Atlantic style of cooking. Popular events on the island include the Santa Cruz de Tenerife Carnival, second only to Rio de Janeiro’s global prominence.
But most importantly, its kind and welcoming locals will help you feel right at home as soon as you set foot in their city to do business.
Through the Canary Islands Special Zone (ZEC), Tenerife boasts the most favorable tax climate in Europe, with a Corporate Tax of only 4%, compared to 30% in the rest of Europe.