Elodie Casola

Posted by Elodie Casola

Tenerife: A Paradise of Luxury Resorts and Business Incentives

Tenerife luxury resorts and tax incentives

Tenerife is a unique vacation destination, offering incredible weather, gastronomy, accommodations and culture just a short flight from mainland Europe. Rising demand for luxury resorts like Abama is steadily taking this most populous of the Canary Islands into the tourism stratosphere. But what many do not know is that it also offers incentives for business owners that rival the best conditions anywhere in the world, and that are greatly differentiated within Spain and the EU.

Both investors and companies may be surprised to learn that Tenerife offers some exceptional tax advantages, including:

  • An indirect tax on consumption of only 7%
  • A fixed company tax rate of 4%, compared with the EU average of 23%
  • Reduction of up to 90% of non-distributed net profit from their taxable base
  • A 50% tax rebate for production of tangible assets
  • Exemptions on import and export duties in the Free Trade Zone
  • No withholding taxes
  • Large deductions of up to 45% for investment in R&D, Innovation Activities (videogames) and the Audiovisual sector

These are refreshing figures in the context of mainland Europe, where crippling taxes make economic efficiencies difficult to come by, especially for the small business. Given our increasingly global world and the rising number of distributed companies, rethinking and revolutionizing your business and investment practices is no longer a foreign concept. And with incentives like these, Tenerife offers serious food for thought. So for those who believed the island was good for nothing more than a short holiday in a luxury resort, it may be time to contemplate a more permanent move.

See the following link for more detailed information and conditions: http://www.whytenerife.com

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