In the Canary Islands (Spain), there are two ways of being taxed when you own property. They depend on how you use your property. 1.- PROPERTIES FOR OWN USE OR UNOCCUPIED. If you own a property in the Canary Islands (Spain) and you use it for your own purposes or simply leave it unoccupied, this Read More
In order to start with the procedures for a holiday home, first of all it must be considered whether the local council allows the activity to be carried out in the place where the property is located. This can be ascertained by requesting a report from the local council. Once a positive report has been Read More
INVESTMENTS BY ENTITIES NOT RESIDENT FOR TAX PURPOSES IN SPAIN WITH A PERMANENT ESTABLISHMENT IN THE CANARY ISLANDS. General Issues A person or entity is considered to operate in Spain through a permanent establishment when it has, on a continuous and habitual basis, premises or places of business of any kind, in which it carries Read More
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 Read More
When buying a property in the Canary Islands by an individual, it is necessary to pay the transfer tax. This tax is liquidated in the Local Treasury of the Government of the Canary Islands. These are the terms and percentages applicable at a general level. There are a series of bonuses and tax exemptions to Read More
SETTING UP A LIMITED COMPANY IN THE CANARY ISLANDS In this case we are going to explain how to set up a limited company in the Canary Islands. We will approach it in a generalised way, as there are other ways of setting up a company that must be done in a personalised manner, taking Read More
Every type of business has several parts to take into account. We explain below the steps to follow in general. Then each case will have its own particularities. 1.- ADMINISTRATIVE PROCEDURES First of all, it is necessary to find a place to develop the activity, whether it is your own or rented. We recommend not Read More
Article 14 of this law prescribes the drafting of the following normative acts: 1. General act on the method of recording, classifying, archiving and keeping archival material and documentary material; 2. List of categories of archival material and documentary material with storage terms; 3. General act on the method of recording, protection, and use of Read More
Compared to other Spanish regions, tax rates on real estate in the Canary Islands are remarkably favorable. So, the total extra costs for buying property remain relatively low, around 10% of the purchase value. The transfer tax on real estate constitutes the largest part of the costs when buying property on the Canary Islands. The rate depends Read More