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Leverage the tax regimes of the Canaries, Ceuta, and Melilla

Expert advisory on the tax regimes of the Canary Islands, Ceuta, and Melilla to maximise available incentives.

The challenge

The special tax regimes of the Canary Islands, Ceuta, and Melilla offer extraordinary incentives, but their complexity and real substance requirements deter many companies from taking advantage of them. Those who attempt it without specialised advice risk losing the benefits through non-compliance or, worse, facing reassessments with interest and penalties.

Our solution

Our team has deep expertise in the ZEC, REF, RIC regimes and the Ceuta and Melilla tax incentives. We assess your eligibility, design the optimal structure, manage the registration process, and ensure ongoing compliance with all requirements so that benefits are maintained over time.

Process

How we work

1

Eligibility assessment

We analyse your business activity, structure, and objectives to determine which regimes and incentives apply, and quantify the potential tax benefit.

2

Regime selection

We recommend the optimal combination of incentives (ZEC, REF, RIC, Ceuta/Melilla bonuses) based on your activity, sector, and investment volume.

3

Application & setup

We manage the entire application process, registry enrolment, and operational setup in the territory, including real substance requirements.

4

Ongoing compliance

We monitor compliance with requirements (employment, investment, effective activity) and prepare periodic documentation to maintain benefits in force.

Our experience advising companies that operate in territories with special regimes allows us to design structures that maximise available incentives without compromising compliance. We know the requirements, the limits, and the best practices to ensure benefits are maintained sustainably over time.

FAQ

Frequently asked questions

What benefits does the Canary Islands ZEC offer?
The Canary Islands Special Zone (ZEC) offers a reduced corporate tax rate of 4% for authorised activities. ZEC companies can also benefit from the REF (Canary Islands Economic and Tax Regime) and IGIC exemptions. Tax savings can exceed 80% compared to the general regime.
What are the REF and RIC?
The REF (Canary Islands Economic and Tax Regime) is the special fiscal framework of the archipelago, which includes investment deductions, tangible goods production bonuses, and exemptions. The RIC (Reserve for Investment in the Canary Islands) allows reducing the tax base by up to 90% of undistributed profits committed to investment in the Canary Islands.
What tax benefits do Ceuta and Melilla offer?
Companies with effective activity in Ceuta and Melilla enjoy a 50% bonus on their corporate tax liability. In addition, there are exemptions from IPSI (local indirect tax) and advantages on foreign trade operations. It is one of the most generous regimes in Spain.
What real substance requirements do these regimes demand?
All regimes require genuine economic activity in the territory: business premises, qualified employees resident in the area, and the activity must be effectively conducted there. Requirements vary by regime and activity type. Non-compliance results in loss of benefits.
Can different regimes be combined?
Yes, with certain limitations. In the Canary Islands, it is common to combine ZEC + REF + RIC to maximise tax savings. However, there are partial incompatibilities that must be analysed on a case-by-case basis to avoid issues with the tax authorities.
Are these regimes compatible with EU state aid rules?
Yes. The ZEC, REF regimes and the Ceuta and Melilla bonuses are authorised by the European Commission as state aid compatible with the internal market, subject to specific limits and requirements that must be observed.
What activities qualify for these regimes?
It depends on the regime. The ZEC admits a closed list of activities (services, technology, commerce, logistics, among others). The REF and RIC apply to productive activities in the Canary Islands. Ceuta and Melilla bonuses apply to any activity with genuine operations in the territory.
What is the process to register with the ZEC?
It requires submitting an application to the ZEC Consortium with a business plan that includes commitments on job creation and investment. The authorisation process takes between 2 and 4 months. Our team manages the entire process from start to finish.

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