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Practical tools

ZEC Canary Islands Tax Calculator 2026

Estimate how much corporate tax your company could save by registering in the Zona Especial Canaria before the registration window closes.

4%

Corporate tax in the ZEC (vs. 25% standard)

€50M

Max. preferential tax base

31 Dec 2026

Registration deadline

Enter your company details

Corporate tax base before applying the ZEC preferential rate.

Determines minimum employees (5 in Gran Canaria/Tenerife, 3 in other islands) and minimum investment (€100K in GC/TF, €50K in others).

Full-time positions registered with Social Security in the Canary Islands. Minimum: 5 (Gran Canaria/Tenerife) or 3 (other islands).

Investment to be made within the first 2 years of registration. Minimum: €100,000 (GC/TF) or €50,000 (other islands). Intangible assets (software, patents) count for up to 50% of the minimum.

25% standard rate, 23% for SMEs (turnover < €1M), 15% for startups (first 2 profitable years).

How the ZEC tax calculation works

The Zona Especial Canaria (ZEC) applies the reduced 4% rate only to the preferential tax base, which is capped at a maximum amount determined by the number of employees the entity has in the Canary Islands. Any profit above that threshold is taxed at the standard corporate tax rate (25%) or at your company's applicable rate.

The preferential tax base starts at €1,800,000 for companies with 3 to 5 employees and increases by €500,000 per additional employee above the minimum threshold, up to a ceiling of €50,000,000 for companies with 25 or more employees.

The ZEC is compatible with the RIC (Canary Islands Investment Reserve), which allows companies to deduct up to 90% of undistributed profits reinvested in the Canary Islands. The combined ZEC + RIC effect can reduce the effective tax rate to near zero on reinvested profits.

For the full requirements and process, read our ZEC Canary Islands Guide 2026 or explore our ZEC advisory service.

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