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Pay 4% corporate tax through the ZEC regime before the December 2026 deadline closes

Expedited access to the ZEC special tax regime (Zona Especial Canaria): eligibility assessment, application, entity setup in the Canary Islands and 4% corporate tax configuration before the December 2026 deadline.

Company seeking to reduce its corporate tax rate to 4% via the Zona Especial Canaria before the December 2026 deadline

What is included

Included services

ZEC eligibility assessment

Detailed analysis of whether the company or business project meets the ZEC access requirements: authorised activities, minimum investment (EUR 100,000 in fixed assets for Tenerife/Gran Canaria or EUR 50,000 for the other islands), minimum job creation and genuine operational link to the Canary Islands.

Application preparation

Preparation of the complete application file for the ZEC Consortium: activity report, business plan, investment justification, corporate documentation and representation before the authority. We monitor the file through to a favourable resolution.

Entity setup in the Canary Islands

Incorporation of the ZEC company or adaptation of an existing entity to meet the requirements for registered office, effective management and control in the Canary Islands. We coordinate the opening of a physical establishment, required local hiring and census registration with the ZEC.

4% corporate tax setup

Configuration of Corporate Income Tax obligations at the reduced 4% rate applicable to the taxable base corresponding to transactions carried out with non-residents or other ZEC entities. Determination of the scope of benefiting income and annual tax planning.

Employment requirements planning

Advisory on meeting and maintaining the minimum job creation requirements (minimum 5 positions in Gran Canaria and Tenerife, minimum 3 on the other islands) throughout the life of the regime. Design of the optimal employment structure in the Canary Islands.

Ongoing ZEC compliance

Annual supervision of ZEC compliance to maintain the tax benefit: substantiation of employment, investment and genuine activity in the Canary Islands, filing of specific declarations and notification of changes to the ZEC Consortium.

Investment

From EUR 4,500

Base price for ZEC entity incorporation or adaptation. Does not include company formation costs (approx. EUR 1,000-1,500) or the cost of establishing physical premises in the Canary Islands.

The ZEC: a tax opportunity with an expiry date

The Zona Especial Canaria is one of the most advantageous tax regimes available anywhere in Spain, and its access window closes on 31 December 2026. For companies with international activities or clients outside Spain, the 4% corporate income tax rate represents a very significant saving compared to the standard 25% rate. However, the application, incorporation and business setup process in the Canary Islands requires between 3 and 6 months of preparation, making timing a critical factor.

At BMC we have developed a streamlined process to help companies of any sector assess their eligibility, file the application and have the ZEC entity fully operational before the deadline closes. We work with a team specialised in the Canary Islands Economic and Tax Regime, with offices on the mainland and in the archipelago, to ensure that all genuine presence requirements are properly met.

Who benefits most from the ZEC

The ZEC is particularly attractive for technology companies, international consulting firms, foreign trade businesses, cross-border professional services and any activity that generates revenue from clients or markets outside Spain. If your company invoices foreign clients, provides services to non-resident businesses or has international growth ambitions, the ZEC can legally and substantially reduce your tax burden within the EU legal framework and with the full backing of the Canary Islands REF. The window to act is now: December 2026 is closer than it appears when you factor in processing timelines.

FAQ

Frequently asked questions

The Zona Especial Canaria (ZEC) is a special tax regime created under the Canary Islands Economic and Tax Regime (REF) that allows registered entities to pay corporate income tax at 4% on the portion of taxable profit corresponding to transactions with non-Spanish residents or other ZEC entities. In addition, transactions between ZEC entities are exempt from the Canary Islands equivalent of VAT (IGIC).
The current deadline to apply for registration in the ZEC register is 31 December 2026. Companies that do not file their application before that date will not be able to access this regime until and unless it is extended. Given that processing typically takes 3 to 6 months, we recommend starting the process well in advance.
The ZEC covers a broad range of economic activities: international trade, business services, information technology, telecommunications, light manufacturing, financial activities (with authorisation), transport and logistics, cultural and leisure activities and other service activities. Certain activities are excluded, including retail banking, insurance and residential construction.
Not necessarily, but the ZEC entity must have its registered office and effective management and control in the Canary Islands. This means the company must have real premises in the archipelago and that management decisions must be taken there. Shareholders or investors may reside anywhere, but the entity itself must have a genuine, verifiable presence in the Canary Islands.
The 4% rate applies to the portion of the taxable base corresponding to transactions with individuals or legal entities not resident in Spain, or with other ZEC entities. The remainder is taxed at the standard corporate income tax rate. Tax planning is key to maximising the share of income subject to the reduced rate.

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