Investing in Gran Canaria

Gran Canaria, an island of opportunity

Its privileged, strategic position in the Atlantic Ocean makes Gran Canaria a special place and, due to its proximity to the African continent, a natural location as a logistics platform between Europe, Africa and America. It is also a region within the European Union with a stable political and institutional framework which enjoys an exclusive Economic and Fiscal Regime, fully compatible with European regulations. This special regime offers economic incentives and tax advantages that greatly exceed those in other regions of the European Union.

Moreover, the island's economy is fully developed, at the same level as the average of the other regions of the European Union, and the services sector, in which the tourist industry has considerable weight, is particularly important.

The island's economic and tax incentives and the conditions of its surrounding make it an ideal place for the development of other sectors, including logistics, advanced services and technology, as well as existing opportunities in the existing tourism and leisure sectors.

Gran Canaria's geostrategic and economic conditions are further strengthened by the provision of an excellent infrastructure, most notably in the areas of transport, telecoms, business enterprise zones and technology hubs.

Fiscal incentives for investment

The Spanish tax system applies to Gran Canaria, although its special status in the European Union makes it eligible for reduced direct and indirect taxation, as well as various tax breaks and business investment financial support.

Reduced taxation

Canary Islands Special Zone (ZEC).

Low taxation zone for corporation tax (4%) to encourage the establishment of new businesses subject to a minimum investment and job creation.

Bonus for the production of tangible assets.

Incentive involving a tax reduction on 50% of the profit attributable to production and industrial activities.

Canary Islands General Indirect Tax (IGIC).

Similar tax to VAT but specific to the Canary Islands and at a lower rate. The general rate is 7%.

Excise Duties.

Excise duty rates on the consumption of fuel, alcoholic beverages, tobacco and certain kinds of transport, are considerably lower than those applied in the rest of the European Union.

Gran Canaria Duty-free Zone.

A duty-free enclave where goods can be stored, transformed and distributed for an unlimited period of time free from duties, levies or indirect taxes.

Investment tax breaks

Tax breaks for national and international audiovisual productions.

Guide to Tax breaks for national and international audiovisual productions (Download)

 

Reserve for Investment in the Canary Islands (RIC).

Incentive that reduces the tax liens on up to 90% of the profits of a business if these are destined for certain investments associated with the activity's growth.

Deduction for investments in fixed assets.

Incentive offering the possibility of a 25% deduction from the quote for investing in fixed assets.

Greater deductions in relation to the Spanish general taxation for investments in RDI, vocational training, exports, information technology, environmental investments, and investments in cultural activities, among others.

Gran Canaria has one of the most powerful fiscal incentives found anywhere in Europe for film and audiovisual production. The Canary Islands enjoy their own particular tax system under a special tax regime validated by Spanish and European regulations, thereby allowing film productions to benefit from the following tax credits:

  • For Spanish productions there is a deduction of up to 40% for the first million Euros invested in production, and 38% for the rest of the budget for the production, subject to a maximum deduction of 5,400,000 Euros per film.
  • In addition, international productions executed in Gran Canaria can generate a maximum deduction of 4,500,000 Euros, calculated as 35% of the total eligible expenses incurred.

For further information visit: http://www.investingc.com

 

Gran Canaria Film Commission

The Gran Canaria Film Commission is a public office managed by the Corporation for the Economic Development of Gran Canaria (SPEGC) the main purpose of which is to attract national and international film and audiovisual projects to be carried out in different locations on the island, projecting and protecting the island's image abroad.

The main aims of the Gran Canaria Film Commission are:

  • Attract filming of national and international audiovisual projects to Gran Canaria, turning the island into an ideal natural stage for productions.
  • Help producers with the necessary formalities to film their audiovisual projects, and putting them in touch with all the resources and professionals in the industry that official bodies and local companies in Gran Canaria can offer.
  • Project the image of Gran Canaria internationally and protect it.
  • Contribute to business development of the audiovisual industry in Gran Canaria.

For further information visit: http://www.grancanariafilm.com/