TAX ADVANTAGES
SPECIAL CANARIAN ZONE (ZEC – ZONA ESPECIAL CANARIA)
The Special Canarian Zone (ZEC) constitutes a privileged space for companies that wish to invest in the Canary Islands, since through this zone a special economic regime with beneficial tax advantages is offered:
• Corporation Tax at a tax rate of 4%
• IGIC (Impuesto General Indirecto Canario): Tax exemption on goods imported and operations among ZEC entities
• ITPAJD (Impuesto de Transmisiones Patrimoniales y Actos Jurídicos Documentados): Property Tax on Second Hand Properties and Legal Documentation Tax. Tax exemptions in the acquisition of goods and rights which affect the activity, society operations and legal documentation
• Application of Double Imposition Agreements and European Union Parent-Subsidiary Guidelines
• Income tax for non-residents: Tax exemptions for benefits distributed to parent companies and returns obtained by non-residents in Spain
To subscribe to the fiscal advantages of the ZEC companies must in the space of six months create a minimum of five employment places and then maintain a staff annual average of five employees. Additionally, companies must make an investment in fixed assets within the first two years of at least 100,000 euros.
Authorised Audiovisual Activity in the ZEC
- Production
- Cinematographic and Video Production
- Production of Radio and TV Programmes
- Film Production
- Auxiliary Activities: voiceovers, locations, etc.
- Production Services, Assistance to Film Shootings and Post Production
- Castings
- Public Relations and Communications
- Locations
- Editing of Computer Programs
- Editing and reproduction of recorded supports: film duplicatinn and reproduction, etc.
- Composition and photoengraving
- Photography and Advertising
- Commercial photographs for adverts, fashion, tourism etc.
- Cinematographic film developing
- Management of catalogues, publications, promotional material
- Design
- Publicity campaigns
The ZEC offers personalised consulting to those business-people that wish to invest in the audiovisual sector in the Canaries.
Fund for investments in the Canaries (ric - RESERVA PARA INVERSIONES EN CANARIAS)
Moreover, since the year 2008, the changes introduced to the Economic and Fiscal Regime applicable to the Canary Islands, allows investment in the audiovisual sector from the Fund for Investments in the Canarias (RIC); which is understood to be those capitals exempt from tax payment within Corporation Income Tax.
In this way, the production of cinematographic feature and short films and fiction, animation or documentary audiovisual series, as well as the development of programmes -provided that these have taken place in the Canary Islands- can constitute objects for the implementation of the RIC. For this reason, the production companies must be inscribed in the Registry of Audiovisual Companies of the Canary Islands, or shoot for a minimum of two weeks in interior or exterior settings of the Islands.
