BMC Melilla

Melilla is one of Spain’s two autonomous cities on the northern coast of Africa — a territory that sits within the European Union but outside the EU customs territory and outside Spain’s standard VAT area. Like its twin city Ceuta, Melilla operates under a special fiscal regime: companies and individuals resident or incorporated there benefit from a 50 % bonification on Spanish Corporate Income Tax (IS) and Personal Income Tax (IRPF) on income generated within the city. In place of VAT, Melilla levies the IPSI — Impuesto sobre la Producción, los Servicios y la Importación — a local production and services tax with significantly lower rates than mainland VAT, which creates genuine cost advantages for locally active businesses and importers.

Geographically, Melilla borders the Rif region of Morocco and is one of Spain’s primary trade gateways into North Africa. The city functions as a logistics and distribution hub for goods moving between the EU and Morocco, and for companies operating in the Spain–Morocco–western Mediterranean triangle. Cross-border structuring, customs classification, and the management of import flows across the Beni Ansar border crossing require specialist advice that BMC provides from its own office in Melilla, operating strictly by appointment.

BMC’s Melilla team advises on the full scope of the special regime — qualifying the bonification, structuring operations to meet residence and substance requirements, navigating IPSI compliance, and planning cross-border transactions between Spanish and Moroccan entities. For companies considering Melilla as an operational or holding base, we provide an honest, commercial assessment of where the regime genuinely adds value and where standard mainland structures remain more appropriate.

Our special territories advisory covers Melilla alongside Ceuta and the Canary Islands (ZEC), allowing clients who need to compare regimes to receive coordinated analysis from a single team. For the cross-border and customs dimension, our customs and trade compliance practice handles import classifications, customs valuation and intrastat. Company incorporations and corporate structuring in Melilla are handled by our company formation team.

For international succession matters involving Melilla-resident assets or beneficiaries — a recurring complexity given the city’s cross-border family structures — BMC coordinates across tax, legal and private-client practices to deliver integrated advice.

Contact the Melilla office at melilla@bm.consulting to arrange an appointment. We confirm the meeting address on booking.

Related services

• Special Territories
• Trade & Customs
• Company Formation
• International Tax

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Melilla office · By appointment — request online.