Beckham Law Tenerife: flat 24% income tax + ZEC regime — the dual-layer fiscal opportunity in the Canary Islands

Beckham Law in Tenerife: Spain’s most layered fiscal opportunity for international entrepreneurs

Tenerife and the Canary Islands occupy a unique position in the European fiscal landscape. The Canary Islands’ special economic and fiscal regime — established under EU state aid authorisation and anchored by the ZEC (Zona Especial Canaria), the IGIC indirect tax and specific R&D deductions — creates a low-taxation environment that is exceptional within the European Union. When the Spanish state-level Beckham Law is layered over this regional regime, the result is a dual-layer fiscal opportunity that few international professionals arriving on the island fully understand or exploit.

At BMC, we have advisors specialised in both the state-level Beckham Law (Article 93, IRPF Law 35/2006) and the Canarian special fiscal regime, offering the most complete advisory available to international professionals and entrepreneurs relocating to Tenerife.

The two-layer structure: Beckham Law + ZEC

The key distinction for entrepreneurs relocating to Tenerife:

The Beckham Law governs personal income tax (IRPF). It applies to the individual — reducing their personal income tax rate to a flat 24% on Spanish-source income for up to five years. It applies regardless of whether the individual works as an employee, freelancer, or company director.

The ZEC governs corporate tax (IS). It applies to the company — reducing corporate income tax to a flat 4% on the ZEC taxable base, subject to eligibility requirements (qualifying activity, physical presence in the Canary Islands, minimum employment creation of at least one full-time employee in Tenerife or Las Palmas).

For an entrepreneur who relocates to Tenerife and operates through a ZEC company:

• The company pays 4% IS on qualifying profits under the ZEC.
• The individual pays 24% IRPF on their salary or director’s fee under the Beckham Law.

This combined structure can achieve effective overall tax rates that are among the lowest available to any entrepreneur within an EU member state.

Who qualifies for the Beckham Law in Tenerife?

• Remote workers: Employees who maintain their employment with a foreign company and transfer their residence to Tenerife — particularly common among northern European professionals.
• Entrepreneurs and startup founders: Founders establishing innovative companies in the Canary Islands, particularly those combining Beckham Law eligibility with ZEC registration for the company.
• Company directors: Persons holding a director role in a Spanish or ZEC company, with no shareholding cap where the company carries on a genuine economic activity; the sub-25% cap applies only to wealth-holding entities (entidad patrimonial, art. 5.2 LIS).
• Transferred employees: Professionals hired by a Spanish company or seconded from a foreign group company to Spain.
• Highly qualified professionals: In R&D, innovation or certified startup entities.

The six-month window: critical from day one in the Canary Islands

The Beckham Law application must be filed within six months of Social Security registration. The ZEC registration for the company has its own timeline requirements. Planning both simultaneously — before the move — is essential to capture the maximum benefit from both regimes from the first day of Canary Islands residency.

BMC advises entrepreneurs on the sequencing and timing of both the Beckham Law application and the ZEC company setup to ensure no deadline is missed.

Wealth tax in the Canary Islands under the Beckham Law

The Canary Islands apply the state reference wealth tax scale from 0.25% to 3.12%, without a full 100% regional exemption (unlike Madrid at 100% and Andalusia at 100%). Under the Beckham Law, the taxpayer pays wealth tax only on assets located in Spain (not worldwide assets), limiting exposure for professionals whose assets are held outside Spain.

The Solidarity Tax on Large Fortunes (ITSGF) applies on net Spanish assets above €3 million. BMC analyses exposure before the Beckham period begins.

Canarian indirect taxation: IGIC instead of VAT

The Canary Islands are outside the EU VAT area and apply their own indirect tax — the IGIC (Impuesto General Indirecto Canario), with a general rate of 7% compared to mainland Spain’s 21% VAT. For freelancers and entrepreneurs:

• Invoices to Spanish clients within the Canary Islands bear IGIC, not VAT.
• Purchases within the Canary Islands generate IGIC deductions, not VAT deductions.
• Exports of services outside Spain (to EU or non-EU clients) may be zero-rated for IGIC purposes.

BMC manages IGIC compliance as an integral part of the full Canarian fiscal advisory service, alongside Beckham Law income tax filings.

How much does an entrepreneur in Tenerife save with Beckham Law + ZEC?

For an entrepreneur with a ZEC company generating €300,000 in profits and drawing a director’s salary of €150,000:

• Under standard structures (ordinary IS 25% + standard IRPF for the salary): the combined tax burden is approximately €75,000 IS + €55,000 IRPF ≈ €130,000.
• Under the ZEC + Beckham Law combined structure: IS at 4% on qualifying profits + IRPF at 24% on the salary ≈ €12,000 IS + €36,000 IRPF ≈ €48,000.

The combined annual saving can exceed €80,000, accumulating more than €400,000 over the five-year Beckham period and the ZEC validity period.

Use our Beckham Law calculator as a starting point for your income profile. For advisory fees, see how much does applying for the Beckham Law cost.

To understand the Beckham Law from the start, see what is the Beckham Law? or the complete 2026 guide.

Fully remote service for Tenerife and the Canary Islands

BMC provides the full Beckham Law and ZEC advisory service for Tenerife and the Canary Islands remotely: video call consultations, digital documentation, electronic AEAT filing and ZEC coordination. The service is available in Spanish, English, German and Swedish to serve Tenerife’s main expat language communities.

BMC has a representation in Tenerife. See our Tenerife representation for local support.