The world is changing.
We analyse what it means for your company.

The Canary Islands and what they can mean for your company

Many companies that establish themselves in the Canary Islands do so initially attracted by the fiscal advantages. What they often discover is that the real opportunity goes much further.

The Canary Islands occupy a singular position in the EU: they are the only EU territory at the crossroads of Europe, America and Africa. This is not merely a geographical fact — it is a structural characteristic that, combined with the right business architecture, can become a competitive advantage.

A platform, not just a location

The key distinction is the difference between a location and a platform. A location is somewhere you go to access a market or a tax benefit. A platform is something from which you operate, connect and grow. The companies that extract the most value treat the Canary Islands as the latter.

This means thinking not only about what the Canary Islands offer today, but about what they allow you to do from them: access the European market, develop business in Africa, coordinate operations between continents, attract talent, access institutional support.

What kind of companies can benefit?

The value is greatest for companies that need a base within the EU to access the single market; want to operate with a reduced tax burden within a fully auditable European framework; are looking to develop business in Africa and need a European base close to the continent; or want to centralise purchasing, services or technological operations from a single strategic hub.

The structure matters as much as the decision

Deciding to establish in the Canary Islands is only the first step. The ZEC, RIC and other instruments of the REF are not automatic tax breaks — they are tools that require a specific corporate and fiscal structure. A well-structured establishment accesses the advantages fully and sustainably. This is the difference between treating the Canary Islands as a destination and treating them as a platform.

The Canary Islands have their own Economic and Tax Regime (REF) that differentiates them from the rest of Spain and grants them special status within the EU.

The ZEC — Zona Especial Canaria

The ZEC allows companies admitted to the regime to apply a corporate income tax rate of 4%, compared to the general rate of 25% in Spain. Access requires: minimum investment (€50,000 in Gran Canaria or Tenerife, €100,000 elsewhere), creation of at least five jobs in the first two years, and an eligible economic activity. The ZEC is authorised and monitored by the EU — fully auditable.

The RIC — Reserva para Inversiones en Canarias

The RIC allows companies to reduce their tax base by up to 90% by allocating profits to a reserve for future investments in eligible assets. Combined with the ZEC rate, a company could reach an effective corporate tax rate of 0.4% or less.

The IGIC

The IGIC general rate is 7%, compared to 21% VAT in mainland Spain.

Additional incentives

R&D&I deduction: 45%–75%. New fixed assets: 25%. Audiovisual productions: up to 54%. Tangible goods production: 50% allowance. Dividend repatriation to EU parent companies: exemption.

Taxation as part of strategy

The Canary Islands tax advantages are a tool, not a destination. They generate real value when integrated into a coherent corporate and fiscal architecture — not when they are the sole reason for establishing there.

For a period, the prevailing narrative was that geography no longer mattered. Digital connectivity and remote work seemed to have neutralised the traditional advantages of location.

What we are seeing now is more nuanced. Technology has not eliminated geography — it has changed which geographical aspects matter and why.

The reorganisation of global investment flows

Geopolitical tensions, supply chain reconfiguration and the search for legal certainty are pushing companies to reconsider where they establish themselves and from where they serve their markets. Location is being re-evaluated not as a fixed cost, but as a strategic resource.

The Canary Islands in this context

The Canary Islands are an EU territory at the crossroads of three continents, with infrastructure connecting Europe, Africa and America, a specific and competitive tax regime, and institutional stability backed by Spanish and European law.

For companies seeking a European base with access to Africa, or wanting to centralise operations between continents, this combination constitutes a genuine competitive advantage.

The historical parallel

For centuries, the Canary Islands were a mandatory stopover on routes between Europe, America and Africa. Ships waited here for the trade winds to cross the Atlantic. This historical vocation as a tricontinental platform is not new. What is new is the business and fiscal architecture that today allows companies to leverage it in a structured, auditable and legally sustainable way.

The strategic question

The relevant question is not whether the Canary Islands are interesting in the abstract. It is whether there is a specific fit between your company's strategy and what this position can offer. When that fit exists, it can generate real and sustainable competitive advantages.