Tax residence in the Canary Islands

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One of the main reasons people choose to move to the Canary Islands is the favorable tax regime. Here are some key points:

  • Tax residency: To qualify for tax benefits, tax residency in the Canary Islands must be obtained. This status allows you to enjoy reduced tax rates and other benefits.

  • IRPEF rates: Personal Income Tax (IRPEF) in the Canary Islands is levied at proportional rates. For example:

    • 0% for basic consumer goods such as energy, water and telephony.
    • 2% for goods.
    • 5% for services.
    • 13.5 percent for luxury products.

2. Facilities for Businesses.

The Canary Islands offer significant advantages for businesses:

  • IGIC: The Canary Indirect General Tax (IGIC) is the local equivalent of VAT. IGIC stands at 7 percent for domestic transactions. This reduced rate is an incentive for companies operating in the archipelago.

  • ZEC: The Zona Especial Canaria (ZEC) is a special economic zone that offers even more advantageous tax conditions. Businesses registered in the ZEC can benefit fromfull exemption from IGIC and other taxes for a period of 10 years.

3. Facilities for Families

Families can also take advantage of the Canary Islands' tax regime:

  • Child relief: Families with children are eligible for relief based on the number of children and their age. For example, families with 3 or more children are eligible for additional relief.

  • Choice of declaration: Spouses can decide whether to file a declaration separately or jointly.

Conclusion

In summary, the Canary Islands' tax regime offers a favorable environment for business, families and those seeking quality living in a paradisiacal setting. Before making important decisions, it is always advisable to consult an experienced tax advisor to evaluate options and plan appropriately. 🌴💼🏡

: The Canary Islands Tax Regime in 2020 | In the Canary Islands : How IRPEF works in the Canary Islands - In the Canary Islands: On vacation or for ... : RIC and ZEC: tax advantages of the Canary Islands - Fiscomania : Moving abroad: taxation in the Canary Islands - Invest Hero : Canary Islands Tax Regime: let's find out together! Student Study.

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