Reyes Castro & AsociadosSanta Cruz de Tenerife
Company setup in Tenerife and the Zona Especial Canaria (ZEC)
Setting up a company in the Canary Islands, from Spain or from abroad, means choosing the right legal form, the right steps and the incentives that really apply.
We explain what is possible in your case, including the ZEC regime, what requirements apply and what timeline is realistic.
- Incorporating a company (SL) or branch, also for non-residents
- Zona Especial Canaria: 4% special rate if requirements are met
- Shareholder agreements and commercial contracts
ConfidentialNo obligation2–3 lines are enough
- [rc_valoracion_en] ★ on Google18 client reviews
- ConfidentialYour case stays private
- Available 24 hWe reply during business hours
- No obligationTell us your case, no commitment
Step 1 of 2 · under a minute
What is your project?
Choose the closest option: WhatsApp opens with the message already started.
WhatsApp opens with the message already started: just finish the sentence. No forms, no calls.
ZEC essentials
What the Zona Especial Canaria offers
Eligible new entities can pay a special corporate income tax rate of 4%, compared with the general rate of 25%. The 4% applies only to the part of the taxable base that comes from operations carried out materially and effectively in the Canary Islands, with limits linked to employment: a maximum base of EUR 1,800,000 with the minimum number of jobs, plus EUR 500,000 for each additional job up to 50, and the tax reduction cannot exceed 30% of net turnover.
This is not a regime for every project: it requires real substance in the islands.
Requirements and procedure
Main conditions
Main requirements: a new entity or branch with registered office and effective management in the Canary Islands; at least one director resident in the Canary Islands; an activity listed in the annex to Ley 19/1994; an investment of at least EUR 100,000 in fixed assets in Tenerife and Gran Canaria (EUR 50,000 in the other islands) within two years; and creating and maintaining 5 jobs (3 in the other islands) within six months of registration; plus a descriptive memorandum.
Procedure: prior authorisation by the ZEC Consortium (two months to decide; no reply counts as a rejection), then incorporation and registration in the official ZEC registry within 18 months, extendable. The entity cannot operate before registration.
- Domicile and effective management in the Canary Islands
- A director resident in the islands
- Eligible activity (annex to Ley 19/1994)
- Investment, jobs and a descriptive memorandum
Company setup for non-residents
Incorporating an SL from abroad
Non-residents can incorporate a limited company (SL). Spanish law requires a minimum share capital of EUR 1, with additional conditions while it is below EUR 3,000. Shareholders need an NIE, and a power of attorney can allow signing without travelling. The Canary Islands apply IGIC instead of VAT.
We coordinate with your tax adviser or accountant on the incentives that apply.
Deadline and conditions
The authorisation of new ZEC entities is limited to 31 December 2026, unless extended or replaced by a new rule under Regulation (EU) No 651/2014. As of 26 Oct 2026 we have not found a published extension. We will assess your case honestly before you invest anything.
How to start
Starting is simple
Tell us your case
Message us on WhatsApp in 2–3 lines: what happened and what worries you. No documents needed yet.
We guide you
We review what you tell us and explain your options, deadlines and risks in plain language.
Clear plan and quote
If you decide to go ahead, you receive a written action plan and fee quote before we start.
Telling us your case commits you to nothing: you sign and pay nothing until you know the plan and the quote, and you can decide calmly. We do not promise results: we tell you honestly what is possible in your case.
Official sources
- Spanish Tax Agency (AEAT): Zona Especial Canaria
- Consorcio de la Zona Especial Canaria
- Ley 19/1994 (Spanish Official Gazette, BOE)
Verified against official sources on 26 Oct 2026. Requirements, rates and deadlines can change: we confirm them for your case. Our advice covers Spanish law only.
Common questions
Frequently asked questions
What is the ZEC?
A low-taxation regime for entities that settle in the Canary Islands and meet investment, employment and activity requirements. Its main incentive is a 4% corporate income tax rate versus the general 25%, on part of the taxable base and with limits.
Is the 4% rate always applicable?
No. It applies only to the part of the taxable base from operations carried out materially and effectively in the ZEC area, with a base cap linked to employment, and the tax reduction cannot exceed 30% of net turnover. The rest is taxed at the general rate.
Can a non-resident set up a company in Tenerife?
Yes. A non-resident can incorporate an SL and needs an NIE. For the ZEC, the entity must also have at least one director resident in the Canary Islands and effective management there.
Until when can authorisation be requested?
New entities can be authorised until 31 December 2026, unless extended or replaced. The Consortium has two months to decide, so it is worth assessing your case in good time.
Do all activities qualify?
No, only those listed in the annex to Ley 19/1994. We review your corporate purpose before preparing an application.
First step
Tell us about your project
Send us two or three lines on WhatsApp. We will explain the legal form, the steps and whether the ZEC may fit your case.
ConfidentialNo obligation2–3 lines are enough
despacho@reyescastroyasociados.comVillalba Hervás, 5, 38002 Santa Cruz de Tenerife
