Free Trade Zone / ZEC
Las Palmas Port has a long-standing tradition as a Free Port, which dates back to 1852.
Recent years have seen the development of the new Canary Islands Economic and Tax Regime (known by its Spanish initials REF), with a number of consequent advantages. A unique Free Zone is regulated and defined by the REF, making it comparable to other offshore zones.
In addition to the development of the customs-free zone, Las Palmas Port has also seen the implementation within the framework of the REF of a special low-tax zone known by its Spanish initials, ZEC, offering up to 100% tax reductions for companies that officially appear in the ZEC register.
FREE TRADE ZONE
The Free Trade Zone of Gran Canaria covers an area of more than one million square metres in the Ports of Las Palmas and Arinaga. Fully urbanised logistics zones are available to companies wishing to set up in them and that perform activities relating to the production, transformation, handling and marketing of goods.
Companies located in the Free Trade Zone of Gran Canaria enjoy a series of specific customs and tax advantages as a result of the legislation relating to free zones in the European Union and the REF in the Canary Islands.
Exemption from the payment of duty upon entry of goods in the area.
Exemption from indirect tax payments for the processes of adapting the goods, such as labelling, packaging or re-packaging, prior to their departure.
Possibility of taking advantage in parallel of the tax advantages of the Canary Islands Special Zone.
Possibility of allocating funds to the Canary Islands Reserve for Investments (RIC in its Spanish initials), or using RIC funds for establishing the company in the free zone.
Location in a strategic port for international logistics, with more than one million TEUs of annual traffic and direct connections with the most important African, American and European ports.
Link to Free Trade Zone website http://www.zonafranca.org/
CANARY ISLANDS SPECIAL ZONE (ZEC)
The Canary Islands Special Zone (ZEC) is a low-tax zone created within the framework of the Canary Islands Economic and Tax Regime (REF) to promote the economic and social development of the Islands and to diversify their production structure.
ZEC was authorized by the European Commission in January 2000 and is regulated by Law 19/94 of 6 July 1994.
In general terms, any entity or branch which intends to carry out an industrial, commercial or service activity included in the list of authorized activities can be established in the ZEC.
ZEC entities are subject to the Corporate Income Tax in force in Spain, at a reduced rate of 4%. This special reduced rate will be applicable within the taxable base limits, depending on the number of jobs created.
Link to the ZEC website.