Tax Consulting: We are a consulting agency located in Tenerife
Company focused on tax and legal advice to all those foreign investors who want to set up a business or acquire any type of property in our Islands. For this purpose, we have our own human resources, as well as external collaborators specialized in different areas related to tax, legal matters, etc… As an important complement to our work, we have interpreting services for our foreign clients or residents in the Canary Islands who do not speak our language, in order to offer them a more efficient and understandable service.
If you are thinking of investing in the Canary Islands either by setting up a business or buying a property we will advise you on all the previous steps to follow and on the development of your business once it is legally established.
There are several tax and legal issues that must be taken into account before starting the procedures for a correct development of the business in the future. If you live abroad and want to set up a business in the Canary Islands, we offer you the possibility of using our offices as a provisional address for the company you want to set up until you find the necessary infrastructure to start up the business.
Holiday homes have been booming in recent years as a new form of tourism in the Canary Islands. As a result it has become a source of extra income for those who own one or more properties in the Canary Islands
If you own a flat, villa or any other property that you only use on a few occasions throughout the year, you have the opportunity to convert it into a Holiday Home and earn income from the tourist exploitation of the property while you are not using it. In order to obtain the Holiday Home license and its legal registration, the property must comply with certain town planning and administrative requirements that we will help you to resolve. Once the license has been obtained we offer you our service to file the taxes derived from this activity depending on your tax situation based on whether you are a tax resident or not in the Islands.
If you own property or business in the Canary Islands you should be aware that you are subject to non-resident tax. There are taxes to be filed annually or quarterly depending on whether or not the property is subject to economic activity.
If the property is for own use only, an annual tax will be due based on the payment of a percentage calculated from the cadastral value of the property. In case the property is rented out, a tax is due every quarter based on the payment of a percentage of the difference between the rental income and the operating expenses of the property. Local taxes and services also have to be taken into account and are usually paid annually. Another annual tax is the wealth tax (Patrimonio Tax in Spanish). In this case only those persons are obliged to file it in the case they meet the requirements established by law and it would be better to study each case individually as it is subject to different tax rules and allowances depending on the Spanish Region where the property is located and other fiscal issues. This is a general overview and summary of the taxes for non-residents in the Canary Islands, please do not hesitate to contact us for more information. We will be pleased to advise you.
If you need more information about our services, please go to service page.
THE BENEFIT OF CANARY ISLANDS
The Autonomous Community of the Canary Islands enjoys a special economic and fiscal regime. This regime incorporates the principles and rules applicable as a consequence of the recognition of the Canary Islands as an outermost region of the European Union (Article 349 of the Treaty on the Functioning of the European Union).
In the territory of the Autonomous Community of the Canary Islands in the area of indirect taxation, Value Added Tax (VAT) is not applied as in the rest of Spain. In this area, the Canary Islands apply the Canary Islands General Indirect Tax (IGIC). The general rate of the Canary Islands General Indirect Tax (IGIC) is 7%, unlike in the rest of Spain, where the rate is 21%.
The Tax on the Transport of Goods (AIEM), the Tax on Fuels Derived from Petroleum and the Tax on Tobacco Products are also indirect taxes specific to the Autonomous Community of the Canary Islands, which are also different from the rest of Spain.
Likewise, when investing in our Islands, there are tax incentives to promote the creation of wealth and employment.
The Canary Islands Special Zone (ZEC) is a low tax zone created within the framework of the Canary Islands Economic and Fiscal Regime (REF), with the aim of promoting the economic and social development of the Canary Islands and diversifying its productive structure. https://canariaszec.com/
RIC (Canary Islands Investment Reserve) This is an important tax benefit for entities subject to Corporation Tax and for individuals (taxpayers of Personal Income Tax) who carry out economic activities through a permanent establishment in the Canary Islands, whether or not they have their tax residence there.
There are other incentives and tax exemptions depending on the nature and amount of the investment that we will explain to you depending on the type of action you wish to carry out in our Islands.