From €2,000 Euros Canary Islands Companies
Spanish Holding Companies in the Canary Islands
Corporate Tax for Holding Companies
Holding companies are an interesting vehicles for making investments in foreign and Spanish companies.
Through these vehicles some income such as dividends or capital gains from group companies may be tax-free. We can advise you on the incorporation of a Holding Company in Spain and the Canary Islands which enjoy preferential rates over Spain such as a low 4% Corporate Tax Rate and the Canaries Reserve which allows owners of Holding Companies to lower their tax liability to as little as 4%. Both of the tax incentives are compatible for Holding Companies.
Such a structure is now available through Eudoxus Tax with a Tax liability of only 4%
The Canary Islands Special Zone has been created within the fiscal and economic regime of the Canary Islands for the purpose of encouraging the economic and social development of the islands and the diversification of their manufacturing and service sectors
The ZEC was initially The Canary Islands Special Zone authorised by the European Commission in January 2000 and now renewed from 1st January 2016
Process – New Companies Canary Islands
The process of establishing your Holding Company takes around 14 days from the time we have all the complete documentation. Nothing will go forward to commence the process without completed documentation as Spanish Law is rigid and requires many processes hence its takes a little time.
Standard Companies take around 7 days again from the point that documentation is complete and provided to Eudoxus Tax.
ZEC Companies are somewhat more complex with the process taking approx. 1 month as a minimum and that assumes there is a place on the next list of application submission, right through to possibly 3 months. Again it is all about getting all the paperwork completed accurately at the outset.
Importantly however and it applies in each case, the formal opening of the company and the company bank account is not complete till the process is finally signed off and registered in Madrid. This is typically a matter of doing it. The process can take up to 3 weeks from the point that the company is created and signed off with the Notary.
However, the Bank Account can receive funds into the Bank Account but is unable to have payments out actioned.
The Bank Account is opened as soon as the Shareholder Payments arrive into the Account in the name of the required Shareholder(s)
4% Corporate Tax (ZEC Companies)
ZEC companies enjoy the following tax benefits:
Corporation tax is charged at 4% on profits derived from ZEC activities. The rates depends on