Requirements

To qualify for the Canary Islands Special Zone (ZEC) regime, the following requirements must be met:

Employment and investment requirements

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Create 5 or 3 jobs

Depending on whether the entity is established on a capital island or a non-capital island, this requirement must be met within six months of registration and maintained throughout the period of stay in the ZEC.

invest €100,000 or €50,000

Depending on whether the island is a capital island or a non-capital island, an investment must be made in fixed assets located in the Canary Islands—assets that are necessary for the conduct of the authorized activities—within the first two years following registration, and said investment must be maintained throughout the entire period of assignment.

In certain cases, an exemption from the aforementioned investment requirement may be requested.

Other essential requirements

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Carry out previously authorized activities

The corporate purpose must include one of the activities listed in the Annex to Law 19/1994.

Administrator based in the Canary Islands

At least one of the administrators or, in the case of branches, their legal representative, must be a tax resident in the Canary Islands.

Newly created entity or branch

The entity or branch must be newly established, although the activity may have been carried out previously. In such cases, new jobs and investment must be created, and an additional contribution made to the social and economic development of the Canary Islands. (Vid Circular 1/2024)

Other essential requirements

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Administrator based in the Canary Islands

At least one of the administrators or, in the case of branches, their legal representative, must be a tax resident in the Canary Islands.

Newly created entity or branch

To have a registered office and a place of effective management in the Canary Islands.

The registered office—in accordance with commercial regulations—and the place of effective management of the entity (not the group)—in accordance with tax rules and case law—must be located in the Canary Islands.

Carry out previously authorized activities

The corporate purpose must include one of the activities listed in the Annex to Law 19/1994.

The entity or branch must be newly created and have its headquarters in the Canary Islands.

At least one of the administrators must reside in the Canary Islands.

An investment of at least €100,000 in Tenerife and Gran Canaria, or €50,000 in other Canary Islands, in fixed assets for a business activity is required within the first two years following registration.

In some cases, a waiver of the prior investment requirement may be requested.

Create at least 5 jobs within 6 months of registration and maintain this average throughout the years of enrollment.

That its corporate purpose falls within the PERMITTED ACTIVITIES listed in the Annex to Law 19/1994.