What Is The ZEC Zone ?
The CANARY ISLANDS, (Spain) also known as Europe’s south tip are composed by 8 sub-tropical islands located in the Atlantic Ocean, approximately 300 km (186 mi) from the African coasts. with a combined population of over 2,000,000. The islands consisting in size order: Tenerife, Fuerteventura, Gran Canaria, Lanzarote, La Palma, La Gomera, El Hierro and La Graciosa.
Tenerife and Gran Canaria acts as the main hub for startups, entrepreneurs and SMEs. Traditionally known as a popular tourist destinations especially for Europeans. The islands are transforming into a bustling business community. Although the Canary Islands fall under Spanish, and thus EU jurisdiction, agreements with the European Comission (which have been quietly nurturing startups for almost two decades) have allowed the ZEC to be formed and the islands to boom and companies to flourish. The European Commission authorized in 2000 a special tax regime for the Canary Islands (This Special Tax Regime is known as the ZEC Zone), now extended until year 2026. The current tax regime offers what can be considered the most attractive tax environment for companies carrying out business practices included in the official list of authorized activites by the ZEC.
Videogames and Esports are part of the authorized list of activities that can benefit from the ZEC regime.
The Canary Islands offer attractive conditions for foreign investment: a large and qualified workforce; an active and constantly growing economic and social system; a consolidated market with the highest levels of development, as well as a privileged access - thanks to its geographical position - the island also boasts first-class infrastructure (ports, airports, highways, technology-business parks); excellent digital, air and maritime connectivity; a tax regime with important benefits compared to the rest of the Spanish, European and worldwide territories, in addition to very competitive costs. And, all this in a safe, stable, and low risk environment. Simply put, pound for pound the ZEC Zone cannot be beat.
Advantages of The ZEC
The ZEC captures the best elements of Europe, with the beautiful stable sub-tropical climate and incredibly reasonable operational costs. Companies who are looking into setting up or working within the ZEC (Remotely or Relocating) would be naive to ignore the importance and value of developing a business within these Island chains. The ZEC Zone is NOT designed to be an Offshore Tax Haven to hide, deceive or cheat the Tax-Man. The ZEC Zone Is a safe, legal and highly regulated Onshore business site, with a set of favourable conditions that makes it the best TAX Regime in the world for serious companies. Below are just a couple of examples that show the sheer differences between central Europe and the ZEC´s Taxation Regime.
The Canary Islands ZEC boast the best Taxation Regime in Europe, but thats not the only thing.
- Maximum Legal Guarantee. Fully integrated in Europe´s legal system. The Canary Islands offer a total guarantee in security and protection to individuals and companies. Data protection/Free Market/Financial regulation
- The Canary Islands are familiar With All The International Anticorruption Measures, also outside Europe (FCPA Due Diligence’s Compliance with the EEUU).
- Spain has Double Taxation and information exchange agreements with EU/EEUU/Canada/Australia/China/Russia. Expatriate your dividends without any retentions.
- Low Living And Operational Costs. Office rent in Canary Islands is among the cheapest in Europe at 15€ per meter square-(10.7 aquare foot). Petrol is 0.95€/1.05$ per liter (the cheapest in all Europe). Rent an apartment (1 bedroom) in City Centre 590€/month
- Advance Telecomunications. Subamarine fiber-optic cable connections. 50 Satellites. Competitive internet speed. The main telecommunication companies in Spain operate in the Canary Islands.
Canary Islands Is All-Business without forgetting about the fun and practicality. Hosting all the modern infrastructures you will ever need for your business and living needs. Along with an average year round temperature of "22ºC/72 Fahrenheit", 4800 natural light hours/year and 159 Miles of Beaches .
Requirements Of The ZEC- Calculate Your Savings
Setting up a company in the ZEC Zone entail some basic requirements, including a little bit of administrative work, however the paperwork and costs associated will MORE than pay for themselves once the ZEC entity is set up. If you are tempted by the multitude of advantages listed in the chapter above, then becoming a ZEC entity is definitely for you. The ZEC was created to encourage, attract and grow international businesses in the Canary Islands not to make barriers to entry. The local government and authorities are always very supportive towards applicants looking to become a ZEC company.
Your entity must be newly created that is physically headquartered (office) in the Canary Islands
A minimum of one of the administrators must live in the Canary Islands (Or a legal representative in case of a subsidiary). Having the choice to operate your ZEC entity remotely without having to relocate with our help.
Investing a minimum of €100,000 Euros in fixed assets related to business activities within a flexible period of time of two years. (With Options for CYCLONE to invest this capital for you).
Create 5 new jobs within 6 months of authorization and hold at least this average for the duration of your ZEC registration. "New Jobs" comprise all of the following scenarios:
--- 1)Already contracted personnel currently working in your home-country company which relocate.
--- 2)Newly Hired employees from anywhere in the world relocated to The Canary Islands.
--- 3) Newly Hired local employees.
In the event of relocating personnel, they need to live at least 6 months per year in the Canary Islands (183 days), this time can be distributed in any way.
Don’t be dissuaded by the the requirements. CYCLONE offers personalized long-term partnership with a hand-on approach and the answer to all your questions. Our agency will provide everything you need to make sure you feel confident and comfortable managing your ZEC entity remotely or as relocating from your country. Our business model dont involve fees, upfront payments or hidden costs. (Lets findout how much you can actually save below).
CYCLONE + ZEC zone. How much can you actually save ?
NET Saving Calculator