Remote Company in Canary Islands

[Ority]

helllo all!

We have to create a subsidiary of a UK business in Spain and we are considering: Barcelona, Madrid and Tenerife.

Every employee will be remote ( mostly in Spain but also from abroad) so I'm not sure that Canary Islands advantages can work (should the 50 employees live there in order to get the 4% taxes?)

Anyone had the same experience? We really need to create the company in Spain as we are offering legal services, so using the UK company won't work. But thats our only constraint. We want to:
- Minimize costs employer costs
- Minimize enterprise taxes
- Easy paperwork
- Best conditions for the employees

Happy to hear your ideas!

 

[Marzio]

should the 50 employees live there in order to get the 4% taxes?

To get taxed at 4% you need at least 6 employee and a 100K investment. Read here about ZEC

 

[Ority]

What if the 6 employees are working remotely from other countries or regions of Spain?

 

[Marzio]

What if the 6 employees are working remotely from other countries or regions of Spain?

I think they have to be registered in Tenerife to access 4% tax but doesn't mean that they couldn't have another apartment somewhere else in Spain where they spend the majority of time.

 

[legrant]

First of all, make sure your company's business is under ZEC's valid activities (https://canariaszec.com/wp-content/...ividades-incluidas-según-NACE-Rev.-2-2019.pdf)

After that, there are these requirements:

1. To be a newly created entity or branch with a registered office and effective place of management in the Canary Islands.
2. At least one of the administrators or legal representative must be a resident in the Canary Islands
3. Minimum investment in fixed assets of 100000Eur in the first two years (50000Eur if its not Tenerife or Gran Canaria)
4. Create 5 jobs in the first 6 months (3 if it's not Tenerife or Gran Canaria). I'm pretty sure they have to be Canary Islands residents.
5. Its corporate purpose must be within the activities permitted by the ZEC
6. Prior authorization by the ZEC consortium

 

[uplana]

It's a business model that is worth to look into. I believe it is more like a Restaurant or Bar or something you need to have to fit in this rule.

Anyway, things are cheap if you know people there so it could really be worth to setup something to get your money legally at 4% tax.