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Tax advisor in Las Palmas — the ZEC, RIC and Canary Islands REF specialists before the 2026 deadline

Tax advisory in Las Palmas de Gran Canaria for companies seeking the ZEC regime, RIC investment reserve, IGIC compliance and the full benefits of the Canary Islands Economic and Tax Regime (REF).

Request a ZEC eligibility assessment for Las Palmas

The problem

The Canary Islands Economic and Tax Regime (REF) is one of the most favourable business tax frameworks in the European Union — authorised by the European Commission as compatible State aid — but it is also one of the most technically demanding to apply correctly. The Canary Islands Special Zone (ZEC), which offers a 4% corporate income tax rate on qualifying activities, carries strict requirements on employment creation, minimum investment, eligible activities, and substance that must be maintained continuously to retain the benefit. The Canary Islands Investment Reserve (RIC), which allows a reduction of up to 90% of taxable corporate income, must be materialised in qualifying Canarian assets within three years or the tax saving is clawed back with interest and penalties. The IGIC — the Canarian indirect tax equivalent of VAT, but with different rates and rules — requires careful management by businesses that expand operations to the islands. Without specialist advice, companies either fail to access the REF benefits to which they are entitled, or apply them incorrectly and face costly regularisation.

Our solution

BMC is a specialist in the Canary Islands Economic and Tax Regime. We advise companies seeking ZEC registration, manage the RIC dotation and materialisation process, handle IGIC compliance for businesses with Canarian operations, and provide ongoing monitoring to ensure that our clients maintain the conditions required to retain their REF benefits. The current ZEC authorisation expires on 31 December 2026 — companies that want to benefit from the 4% rate must apply and receive authorisation before that deadline.

Process

How we do it

1

REF eligibility analysis and benefit mapping

We assess your company or project against the requirements for each REF incentive: ZEC (4% CIT rate), RIC (up to 90% taxable income reduction), Canarian Investment Deduction (additional deduction rate over the standard national level), and the Las Palmas Free Zone. We model the expected tax saving under each incentive compared to the standard Spanish tax regime and identify the optimal combination of incentives for your specific business and investment profile.

2

ZEC registration application

We manage the complete ZEC registration process with the Consorcio de la Zona Especial Canaria: preparation of the business activity memorandum, documentation of the employment and investment requirements, preparation and submission of the formal registration application, and follow-up with the Consorcio through to the issue of the ZEC authorisation certificate. We advise on the eligible activities for your business and ensure the application is structured to minimise the risk of objection.

3

RIC management — dotation to materialisation

We plan the annual RIC dotation to the investmen reserve in line with your company's profits, identify qualifying investment assets for materialisation within the three-year window (new tangible and intangible fixed assets, qualifying financial investments, employment creation), document the materialisation transactions to support a clean AEAT review, and monitor the RIC reserve balance and materialisation deadlines to prevent any clawback risk.

4

IGIC compliance and periodic filings

We manage all periodic tax filings under the Canarian regime: IGIC returns (general rate 7%, reduced rates 3% and 0%, increased rates 9.5% and 15%), AIEM (the Canarian import duty), Corporate Income Tax with REF incentives applied, annual informational returns, and any other Canarian-specific compliance obligations. We also advise on the IGIC treatment of transactions between the Canary Islands and mainland Spain or other countries.

4%
ZEC corporate income tax rate on qualifying activities
90%
Maximum taxable income reduction via the RIC
Dec 2026
Deadline for new ZEC registrations under current authorisation

We run a technology services business and were looking for a low-tax structure to scale internationally. BMC explained the ZEC in detail and managed the full registration process. We are now operating from Las Palmas at 4% corporate tax on our ZEC-eligible activities. The compliance is fully documented and we have complete peace of mind.

Isabel Méndez Cabrera CEO, Atlantech Solutions ZEC SL

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Tax advice in Las Palmas: the Canary Islands REF opportunity before 2026 closes

The Canary Islands Economic and Tax Regime (REF) is one of Europe’s most significant tax advantages for international businesses — a low-tax framework in an EU jurisdiction, backed by European Commission authorisation, that provides a corporate tax rate of 4% for qualifying activities under the ZEC alongside a suite of other incentives that collectively make the Canary Islands one of the most tax-efficient business locations in Europe for the right profile of company.

The current ZEC authorisation runs until 31 December 2026. While a renewed authorisation beyond 2026 is expected — the REF has been continuously renewed since its establishment — the existing authorisation creates a specific and time-limited window for companies to register and lock in access to the 4% rate under the current framework. BMC advises companies on ZEC registration as a matter of urgency for 2026.

The full REF toolkit for Las Palmas businesses

The ZEC’s 4% rate is the headline incentive, but the full REF provides a broader toolkit of complementary advantages:

  • ZEC: 4% CIT on ZEC-eligible activities up to the applicable base maximum
  • RIC: Up to 90% reduction of taxable income via the Canarian Investment Reserve
  • Canarian Investment Deduction: Deduction percentages 80% higher than the equivalent national deduction for fixed asset investment
  • IGIC advantage: 7% general rate versus 21% on mainland (where applicable to local operations)
  • Las Palmas Free Zone: Duty-free importation and storage of goods without payment of AIEM or IGIC

Used in combination, these incentives can dramatically reduce the effective tax burden of businesses operating from Las Palmas, in a fully compliant EU framework.

Eligible activities for the ZEC: a diverse and expanding list

The ZEC’s eligible activity list is broad and covers most service-sector and commercially-oriented businesses. The most popular categories with international companies registering in Las Palmas include: information and communication technology services (software development, cloud services, cybersecurity, data centres), business process outsourcing and call centres, international wholesale trading (goods traded through the Canary Islands between Africa, Europe and the Americas), logistics and shipping, audiovisual and content production, and business consulting and management services for international clients. BMC verifies eligibility for each client’s specific activity profile before initiating the registration process.

FAQ

Frequently asked questions

The Zona Especial Canaria (ZEC) is a low-tax area in the Canary Islands authorised by the European Commission under the Canary Islands Economic and Tax Regime. ZEC-registered entities pay corporate income tax at 4% on the portion of their taxable income corresponding to qualifying ZEC activities, up to maximum base limits that increase with headcount. To qualify, a company must: carry out one of the listed eligible activities (IT services, call centres, wholesale trading, transport, manufacturing and others); create at least one job (three in Las Palmas de Gran Canaria); invest at least €100,000 in fixed assets in Gran Canaria within two years of registration (€50,000 on the smaller islands); and have genuine economic substance in the Canary Islands. BMC assesses eligibility for each client before initiating the registration process.
The RIC (Reserva para Inversiones en Canarias) is a corporate tax incentive that allows companies with activities in the Canary Islands to reduce their taxable corporate income by up to 90% of annual profits, by earmarking a reserve in the accounts that must be materialised in qualifying Canarian investments within three years. Eligible assets include new tangible and intangible fixed assets, qualifying financial securities, and employment creation. If the reserve is not materialised in time, or is materialised in non-qualifying assets, the company must reverse the tax saving and pay the difference with interest. BMC manages the full RIC cycle: dotation planning, asset selection, documentation, and AEAT representation in any review.
The IGIC (Impuesto General Indirecto Canario) is the Canary Islands' own indirect tax, equivalent in structure to VAT but with significantly lower rates: the general rate is 7% (versus 21% for standard VAT on mainland Spain), with reduced rates of 3% and 0% for certain goods and services, and increased rates of 9.5% and 15% for luxury items. The Canary Islands are outside the EU VAT area, which means supplies between the Canary Islands and mainland Spain, or between the islands and other EU countries, are treated as imports and exports from a VAT perspective rather than intra-Community transactions. For businesses expanding to the Canary Islands, understanding and correctly applying IGIC is essential — and the differences from standard VAT are significant enough to require specialist advice.
Yes, subject to the ZEC genuinely having real economic substance in the Canary Islands. The ZEC is not a purely administrative structure: the registered company must have at least one employee registered with Social Security in the Canary Islands, must carry out the eligible activities genuinely from Las Palmas or Tenerife, and must meet the minimum investment requirements. Artificial structures with no real Canarian presence are incompatible with the ZEC regime and with EU State aid rules. BMC advises on the minimum substance required for a mainland company to establish a genuine ZEC-eligible Las Palmas operation, and structures the setup to meet the requirements in a robust and compliant manner.
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