1. Introduction
The Canary Islands, thanks to their strategic position in the middle of the main sea and of airline routes from West Africa, Latin America and Europe as well, shall be considered as a natural connection for international trades with all these countries.
As a part of the Spanish territory, Spanish law shall apply and they even benefit of the advantages deriving from application of the EU Legislation; moreover, being qualified in accordance to both articles 349 and 355 of the Treaty on the Functioning of EU, as Ultra Peripheral Region, within the EU territory, therefore, these islands are subject to a more favourable taxation than the rest of Europe.
2. Opportunities and benefits
In facts, the taxation of the Companies incorporated in the Canary area is the lowest in Europe with a percentage equal to the 4% of the flat rate ZEC (Special Canary’ Zone) while the IGIC, equivalent to the VAT, amounts only to the 7%.
Furthermore, the free zones of Tenerife and of Gran Canaria give even more economic advantages in relation to the import/export of goods, due to the possibility that activities such as creations of goods and transformation of products, of commodities and of components, as well as storage, packaging and sale of goods, can be executed without the application of any duties, charges or taxes.
In particular, the free zone of Gran Canaria has about 300,000 square meters with infrastructures already built for investment projects, while the free zone of Tenerife includes both the harbors of Santa Cruz and of Ganadilla de Abona. (South Tenerife) for a total of about 215,000 square meters.
3. Conclusion
In the Canary area, the sectors of e-commerce, Delivery, Logistics, ICT, Renewable Energy and Pharmaceuticals, are those with the greatest signs of recovery after the pandemic.
During 2021, many Italian companies interested in expanding their business to the Canary Islands participated to several business meetings in Tenerife.
Landolfi & Associati corporate lawyers are available for any further insight and for information on internationalization strategies in the Canary Islands, in the EU territory and in extra EU countries, as well as on international commercial contracts to be negotiated and drafted in English, French and Spanish.
