Special tax zone Tenerife - ZEC

The ZEC - Zona Especial de Canarias.

The Canary Islands Special Zone is a low tax zone created for the purpose of promoting the economic and social development of the Islands, increasing investment and diversifying their production structure. The Canary Islands Special Zone was authorised by the European Commission in January 2000 and extended in December 2006. The benefits provided by the Canary Islands Special Zone will initially remain in force until 31 December 2019, this date may be extended if authorised by the European Commission. The final date for authorisation to register in the Official ZEC Register (ROEZEC) is (at the moment) 31 December 2013.

The ZEC offers:-

  • Corporate income tax at 4 %
  • Exemption from Transfer Tax and Stamp Duty
  • The provision of goods and services among ZEC Entities is exempt from IGIC, as is the importing of goods by ZEC Entities.
  • Double Taxation Agreements signed by Spain apply to ZEC Entities.


  • The company must have its registered office and effective place of management within the geographical area of the ZEC
  • At least one of the administrators of the company must be resident in the Canary Islands.
  • A minimum investment of €100,000 Euros must be made in the case of Tenerife or Gran Canaria, or €50,000 in the case of Fuerteventura, Lanzarote, La Gomera, El Hierro or La Palma, in fixed assets related to the business activity within the first two years.
  • A minimum of five or three jobs must be created, depending on whether the location is one of the capital islands or an outlying island, before the completion of six months following registration, this average must be maintained during the time the company remains within the ZEC.
  • The type of business must be one of those in the approved list.

The ZEC Consortium will approve and undertake the necessary procedures to grant the corresponding authorisations and to subsequently register companies in the ROEZEC. As well as its administrative tasks, the Consortium will assist all interested parties and ZEC Entities with the necessary human and material resources to assist with the viability of business projects within the ZEC.