Spanish PrimeTenerife, Gran Canaria and Lanzarote
Set up your company in the Canary Islands.
Adeje, Arona, Las Palmas, Lanzarote and beyond: company formation and accounting under the Canary Islands' own tax system, explained in English.
Spain's own tax system, with lower rates.
In Adeje, in Tenerife, 60.7% of residents are foreign nationals, and in neighbouring Arona the figure is 57.9%. Year-round sunshine and flights make the islands a home for international residents and remote businesses.
The Canaries also have their own tax rules. Getting them right from day one is the difference between a real advantage and a costly mistake.
Source: INE population data, 2026.
What is different in the Canaries
IGIC instead of VAT
Businesses charge IGIC, with a general rate of 7%, instead of Spain's 21% VAT, and file it with the Canary Islands Tax Agency (ATC), not the national AEAT.
ZEC: 4% corporate tax
Eligible new companies in the Canary Islands Special Zone pay 4% corporate tax instead of the standard rate. It requires real presence, a resident director, minimum investment and job creation. We check whether you qualify.
Canary Islands Investment Reserve
The RIC lets companies reduce taxable profit by up to 90% of undistributed profits reinvested in the islands, within the legal conditions.
Selling to the mainland
The islands are outside the EU VAT area, so shipping goods to or from mainland Spain involves customs formalities. We plan your invoicing around it.
How we set it up without you travelling
Free call, in English
We map out your business, the right structure (SL or autónomo) and exactly what you need, before you spend anything.
Power of attorney, no travel needed
You sign a power of attorney by video call with a Spanish notary where available, or in person. We handle the notary, tax ID and Mercantile Registry for you.
Accounting live from day one
Bilingual books, tax calendar and quarterly filings set up before your first invoice, with one accountant you can call.
Living and working in the Canary Islands
Sunshine all year, a flight of around four hours from most UK airports and some of the most international towns in Spain make the Canaries a natural home for remote businesses and people who want to live outdoors all year.
Because the islands have their own tax system, your company and your personal taxes need to be planned together from day one. We explain the options in plain English.
Frequently asked questions
Can I live in the Canaries and sell to customers in the UK?
Yes. Many clients run online and service businesses from the islands. Services sold to businesses outside Spain follow specific rules, and we set up your invoicing and IGIC treatment correctly.
Is the Canary Islands tax system better for me?
It can be, with IGIC at 7% instead of 21% VAT and incentives such as the ZEC and the RIC. Whether it suits you depends on your activity and plans, which we review in your free call.
Ready to start your business?
Book a free, no-obligation call in English. We'll tell you exactly what you need.
Book a free consultation