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.
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 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