Thursday, 30 April 2015

Spain approves improved special tax regime for the Canary Islands

Spain has approved with the agreement of the European Union (EU) Commission the new Spanish special tax regime for the Canary Islands (Zona Especial Canaria , or ZEC ), which entered into force on January 1, 2015.  The improved regime has been extended until 2026.  ZEC entities are entitled to the benefits of EU directives and double taxation treaties entered into by Spain.

The new regime repeals some of the previous version's limitations; most importantly, taxpayers can apply the advantageous 4% corporate income tax rate to all of its taxable income under certain conditions. Detailed regulations regarding the regime are expected to be released soon.

Source and more info: PwC