CANARIES: business opportunities, Financings and Tax breaks
IBS by virtue of the valuable synegies and cooperations existing, is pleased to present the OPPORTUNITIES on the CANARIES ARCHIPELAGO, through:
- Financigs and Tax breaks for startups;
- Explanation of the strengths offered by the Archipelago to a prospective investor;
- Services offered in the Gran Canaria, Tenerife, Lanzarote, Fuerteventura, La Gomera, El Hierro and La Palma islands territories along with a series of general information in addition.
MEETING VENUE AND SCREENING OF BUSINESSES: after a preliminary phone or mail contact through the following form contact, in Turin a series of meetings with a person in charge that will analyze the Business project will be held, providing some information abut the viability.
TURIN OFFICE: Corso San Maurizio 8, Torino ( Office downstairs)
DEVELOPMENT OFFICE: Tenerife
Before fixing a meeting in person, it is essential to advance a presentation, or a teaser or abstract of the outlines of the project for a first analysis. If the project is evaluated positively further information before the meeting in Turin will be required.
TABLE OF CONTENTS OF THE FOLLOWING ARTICLE:
1. Announcement of a competitive exam for Financings and Tax breaks for startups in technology, innovation and science sectors on the Canaries Archipelago concerning entrepreneurial projects which represent the successful Made in Italy.
2. Deepening on Tenerife, opportunities on three continents (Europe, America, Africa) for internationalization programs, ZEC (Canary Islands Special Zone), tax breaks and customs facilities, general opportunities and information.
ANNOUNCEMENT/ COMPETITIVE EXAM FOR FINANCINGS AND TAX BREAKS FOR STARTUPS IN TECHNOLOGY, INNOVATION AND SCIENCE SECTORS ( supporting instruments and guidance for innovative startups)
OBJECT: Screening of the Entrepreneurial Projects through the announcement titled “The successful and excellent Made in Italy settle in in the Canaries” and first Strategic Guidance for the Italian Startups which wish to settle in the Canaries.
SPONSORSHIP OF THE GOVERNMENT AND OF THE INSTITUTIONS IN CHARGE
Institutions and offices in charge, local authorities and Government of the Canaries, sponsor the present announcement to allow and favour the settlement in the Canaries of new businesses, enterprises and business ventures, projects which intend to represent the winning and successful “Made in Italy” and which want to check how to operate in some strategic sectors specifics of the Canary Islands.
WHY CANARIES: THE ROLE OF THE EU AND THE SUPRANATIONAL INSTITUTIONS
In 2015 the reform avered by the European Union provided constancy to the Economical and Tax Regime (ETR) of the Canary Islands which came into force on 1/1/2015. New and specific time horizons (2026) emerge for what concerns the strategic activities which can be settled and developed in the Canary Islands. Moreover, incentives and tax allowances can be applied and obtained, and also funds and financings for activities which have a strategic value and make the settlement particularly remarkable and strategic.
PRELIMINARY SERVICES AND PERSONS ADMITTED:
The purpose of the initiative is favoring the settlement and/or the presence in the Canary islands of valuable representatives of the most renowned “Italian Style” and “Made in Italy” successful entrepreneurial models.
The following services will be supplied without consideration and engagement only to the projects which match the characteristics required by the Competitive Exam:
- First advice on strategic guidance, which includes the logistic, building and fiscal aspects.
- Counsel and suggestions and/or possible amendments for the entrepreneurial project.
-information about possible opportunities for the settlement of startups, cooperations with Public Authorities, Institutions and Local Governments, Technology Parks, Universities, etc.
- At a later stage, the Projects which will be selected can be presented and helped by offices and residential Partners, to be introduced to the proper authorities, public offices and institutions nominated by the Canaries government and the Spain state.
ADDED VALUE FOR ENTREPRENEURS AND PRINCIPALS OF STARTUPS PROJECTS:
- Have the possibility to provide to Italian investors and entrepreneurs a comprehensive overview, characterized by a first analysis of viability of the entrepreneurial Project in the Canary Islands, which consider the Tax Model (on the basis of the type of project, the objectives and the business model that the project aims to achieve), the logistic aspect, the buildings, the politic and diplomatic initiatives and other aspects which have a strategical importance.
- Start and establish a dialogue between the persons put in charge of supplying support services and interesting important entrepreneurs, providing the latter with information, guidelines and basic services without compensation.
- Conferment of the “Support” and specialized support to important Entrepreneurial Projects, with a high technological and professional profile to enhance the “Made in Italy”.
SECOND STAGE (for the projects evaluated as interesting) :
The selected entrepreneurs, after a first analysis, will have the possibility to benefit from our following services and advices supplied:
PRESENTATION OF THE PROJECT in the offices and Public Councils, or the Authorities and the function nominated by the Canaries Government with the aim to obtain the appreciations and the entitlement to require the benefits, the tax exemption and/or allowance and/or the support in the project or business start up.
In the case a ZEC authorization request is needed (for example to benefit from the implementation of a 4% tax rate) you can resort to the method “Online Procedure”. You will be required to go, upon appointment programming, to the Regional Offices in charge in TENERIFE or GRAN CANARIA, to have a short interview with an Official, to present and register the application or to collect the license obtained.
Alternatively to the procedure above mentioned, in other cases an “online” procedure will be started and concluded and the entrepreneur or the entrepreneurs will have the possibility to go to the island to attend to the following formal acts which need the presence on the spot ( formation of a company etc.).
SUPPORT AND ADVICE FOR THE FORMATION OF A COMPANY AND FOLLOWING MANAGEMENT:
- Drawing up of the Viability Study
- Drawing up of the Business Plan and/or Investment Plan
- Analysis and indication of the company model / asset of an emergent business, for the implementation and the optimization of the tax regime of Canary Islands (ETR, RIC etc. etc..) and/or other solutions which allow tax allowances and/or benefits
- Activities for the formation of a company, for example formal, bureaucratic acts etc., both Limited Company and public limited company of Spanish Law ( equivalent to an S.p.A. ) having the registered office in the Canary Islands
- Management and keeping of accounting
- Support and advice activity for the “start up” stages of the business
- Preparatory activities, such as the location of the place, the areas, the premises etc.
SUPPORT AND ADVICE FOR THE SETTLEMENT AND THE FOLLOWING START-UP OF THE BUSINESS:
- Support for the papers and for the start of the meetings, the cooperations and the synergies with technology parks, Universities, local authorities etc.
- Support, advice and papers concerning the settlement, for the areas and the premises used as office, offices, workshops (both “on the free market” and in technology parks, Vivero de Empresanas, or coworking areas etc.), trade areas, craft areas, industrial areas, depending on the necessities and suited for the purpose.
- Support for the submission (if provided for where it is possible) of requests for the achievement of financings. This activity can be made only after having acquired the legal instrument, that is after having established and registered the business on the Business Register.
CHARACTERISTICS AND REQUIREMENTS OF THE ENTREMPRENURIAL PROJECTS:
The characteristics and the essential requisites that the projects have to fulfill to be selected and taken into account are the following:
- The Entrepreneurial project must concern an activity and/or must operate in one of the following product sector or be related to the following categories :
o Informational sector, development of software and applications
o Electronics, development of hardware and firmware; production of electronic equipment
o Industrial automation, robotics, smart home technology (research and development, prototyping, industrial production)
o ICT and telematic networks, information and communication technologies
o Education, e-learning included, using digital platforms
o Intermediation and trading using digital platforms
o Marketing and advertising using digital platforms
o Digital publishing
o Photography and media and communication services
o Video production and post-production/ cinematography
o Drone manufacturing ( remote-controlled aircraft )
o Research for innovation and development applicable to different sectors
o Planning studies
o Biotechnologies and food and health sciences
o Other activities strictly related to science, technology, innovation, development and research.
o NOTES: for some manufacturing / production activities the rental and the leasing of manufactured products, solutions and equipment realized are included
o WARNING: refreshment activities and small businesses can’t use the tax breaks described and are therefore excluded.
- To be taken into consideration, the entrepreneurial project must be necessarily equipped with the documents required.
- The entrepreneurial projects must include a “solid organization” with its own operational and registered office placed in one of the Canary Islands.
- The lowest economic engagement budgeted from the Italian investor (without considering supports and financings) for the purchase of assets and/ or instrumental goods, on the basis of the realization of the project must be:
• Of at least EUR 100.000 for these activities which will settle in Gran Canaria or Tenerife within 24 months from the start of the business
• Of at least EUR 50.000 FOR THESE ACTIVITIES WHICH WILL SETTLE IN El Hierro, Fuerteventura, La Gomera, La Palma and Lanzarote, within 24 months from the start of the business.
- The entrepreneurial project or the start-up have to include the creation of minimum:
• 5 (five) jobs for the activities which will settle in Gran Canaria or Tenerife within the first 6 months form the start of the business.
• 3 (three) jobs for the activities which will settle in Lanzarote, Fuerteventura, La Gomera, El Hierro and La Palma within the first 6 months from the start of the business.
2. CANARIES ARCHIPELAGO: “TENERIFE” and the advantages that offers to an investor for the expansion of an internationalization project
- Tenerife offers a sound and steady political and macroeconomic framework by the addition of European guarantees.
- It is provided with modern buildings thanks to a technological constant development and effective advanced digital communication (examples: fiber optic ring, Teide-HPC supercomputer, data center D-Alix).
- It is favored by a naturalistic environment and a special life quality, with a mild climate all the year with an average temperature of 22 Celsius degrees, with the highest average of sun hours of Europe (3000).
- It has excellent air and sea links and convention centers equipped for excellence events, with highly competitive prices for the rental of industrial ships and offices.
- Highly competitive labor cost, supply cost and cost of services to enterprises (for example: electricity average cost, water and hot water average cost, etc.).
- Financing lines, supports and fundings, guarantees, incentives to the national, regional and insular
- Tenerife Science and Technology Park (PCTT): if the project would be technologic or of research in the health, biotechnologies, touristic innovation sectors.
STRATEGIC GEOGRAPHICAL POSITION AND AGRREMENTS WITH NEIGHBOURING COUNTRIES:
Thanks to its geographical position, and being a member of the EU, Tenerife represents the gateway for three continents: Europe,America, Africa. For what concerns Africa, these are some countries with which we make trades:
Mauritania, Togo, Morocco, Nigeria, Equatorial Guinea, and Cape Verde. Moreover, there are existing agreements with many Western African Countries and 50 cooperation projects in different sectors among which: science, education, agriculture, farming renewable energies, bio-combustible production and modernization of the public administration.
SOFT TAX REGIME AND ZONA ESPECIAL CANARIA (ZEC)
Special tax regime unique in Europe thanks to its insular condition, which is suitable for any kind of business and entrepreneurial projects, even though the advantages of community right are maintained.
- IGIC (Canary Island General Indirect Tax) : 7% which is a regional tax on the final consumption equivalent to our VAT.
CANARY ISLANDS SPECIAL ZONE (ZEC):
- For the enterprises registered in ZEC, the tax on the revenue of the societies at 4% on the part of taxable base which comes from the transactions made in the Canary Islands is applied.
- The enterprises registered in the ZEC domain don’t pay IGIC tax.
- Requirements: be a start up, have a well-drawn project, have a residential director, have at least EUR 100.000 of investments in fixed asset during the first two years and create at least 5 jobs in the 6 months after the registration of the company on the island register of companies.
Other TAX BENEFITS and ADVANTAGES in INVESTING in TENERIFE:
- Agreements to avoid the double taxation
- Have the possibility to benefit from the directive Company Mothers-daughters (2003/123/CEE) of the European Union through which the dividends allocated from the branch registered on the ZEC domain to the operating holding company with office in any other EU country (European Union) won’t be withheld.
- Exemption from Property transfers tax and documented juridical acts tax
- RIC Reserve for investments in Canary Islands with an allowance up to 90% in the benefit not distributed through the endowment of a Special Reserve for investments in Canary Islands (RIC).
TENERIFE FREE-TRADE ZONE (ZFT)
Customs advantages on the Tenerife Free-Trade Zone (ZFT): storage, transformation and marketing of the goods without paying duties , indirect taxes and special taxes. In particular:
- Exemption from importation rights during the stay of the goods in the Tenerife Free-Trade Zone;
- Exemption from the payment of special taxes for all the goods which will enter in Tenerife Free-Trade Zone;
- Exemption from IGIC tax ( assimilable to our VAT) for the goods of the Free-Trade zone and for the services provided concerning the goods themselves.
TYPES OF SOCIETIES
Even though there are different options and types of societies which can be established and registered the most renowned are the following:
- Sociedad Anonima SA ( equivalent to the English Public limited company Plc)
- Societad de Responsabilidad Limitada SL ( equivalent to the English Limited company Ltd.)
Minimum number of shareholders 1, the capital stock is different ( EUR 3000 for Societad de Responsabilidad Limitada while EUR 60.000 for Sociedad Anonima). First of all a negative certificate is required to specify the name of the company, with the opening of a bank account, and the creation of the articles of association and the incorporation notarial public contract, to which a tax identification number will follow (first temporary then definitive TIN) and registration in the island register of companies. The people with an entrepreneurial project interested in the Canary Islands or Tenerife will receive all the details.
ENCLOSURES, LINKS OR WIDENINGS ABOUT THE CANARY ISLANDS PROJECT:
- Group of the Free-Trade Zone in Tenerife in Spanish
- Canary Islands Special Zone ZEC in Italian
- Tenerife: comprehensive guide visiting, living, investing
- Why Tenerife? (there are references)
- Modification of the economic and tax regime of the Canary Islands in Spanish
- Proexca and investment opportunities in Spanish
- Procedure register free-trade zone The Canary Islands in Italian
- List of activities in the Free-Trade Zone ZEC Canary Islands in Spanish
Notes: for the enclosures not in automatic download please send an email and provide the data of the person or the business interested.
OTHER USEFUL LINKS:
- IBS foreign DESKS
- Main Documents on International trade
- Letter of Credit and International bank Guarantees
- Customs glossary
- Country profiles and international or geopolitical articles
- IBS Blog