ZEC Canary Islands Zone – Special Tax Regime and Opportunities on Fuerteventura

The Zona Especial Canaria (ZEC) is a special tax zone of the Canary Islands, created to attract high‑value business activity.

For Fuerteventura, the ZEC offers significant advantages, including corporate tax rates starting at 4% and a reduced minimum investment of €50,000 in the first year.

This page explains the requirements, benefits and practical relevance for companies operating on Fuerteventura.

Overview & Purpose of This Page

This section provides a structured overview of:

the ZEC Zone
tax advantages
investment requirements
location benefits on Fuerteventura

It is designed for investors, entrepreneurs and internationally active companies seeking to understand and utilise the Canary Islands’ special tax framework.

Additional related topics include Company Formation and the Beckham Law.

What Is the ZEC Zone?

The ZEC is part of the Régimen Económico y Fiscal de Canarias (REF), the special economic and tax regime of the Canary Islands.

It applies to companies that:

have their registered office and effective management in the Canary Islands
operate within authorised business sectors
create qualified jobs
make defined investments
register officially with the ZEC authorities

The objective is to promote high‑quality, internationally oriented business activity.

Tax Advantages of the ZEC

The central benefit:

Corporate tax from 4% instead of the standard 25% in mainland Spain.

Additional advantages include:

reduced local tax burden
compatibility with other REF instruments (e.g., RIC)
access to EU support programmes
long‑term tax planning stability

For Fuerteventura, this represents a substantial advantage for companies with real substance on the island.

Investment Requirements – €50,000 on Fuerteventura

A key location advantage of the Canary Islands:

In many regions of Spain, the minimum investment requirement is €100,000.

On the Canary Islands – including Fuerteventura – the minimum investment can be €50,000, depending on the project type and island.

Typical requirements:

€50,000 investment within the first two years
or €100,000 for larger projects
creation of 3–5 qualified jobs
activity within an authorised sector

This is an important knowledge advantage: Many only know the €100,000 rule — the €50,000 threshold on Fuerteventura is a genuine location benefit.

Requirements for ZEC Status

To be recognised as a ZEC company, the following conditions must be met:

registered office and effective management in the Canary Islands
official registration in the ZEC registry
activity within an authorised sector
minimum investment (e.g., €50,000 on Fuerteventura)
creation of qualified jobs
compliance with ZEC regulations and reporting obligations

The ZEC is a regulated EU instrument with clearly defined requirements.

ZEC Zone & Fuerteventura – Practical Relevance

On Fuerteventura, the ZEC is particularly relevant for:

internationally oriented service companies
logistics, trade and export activities
tourism‑related high‑value projects
technology and remote‑work structures
holding and corporate structures with real substance

Combined with:

IGIC at 7%
SL incorporation from €500
low operating costs

Fuerteventura offers an attractive setup for companies seeking long‑term operations on the island.

ZEC & Real Estate on Fuerteventura

The ZEC is not a pure real‑estate instrument, but:

real estate can form part of the required investment (e.g., office or business premises)
projects with real‑estate components may qualify
combining ZEC structures with property ownership can be tax‑efficient

Important: The ZEC requires real substance — shell companies are excluded.

Conclusion

The ZEC Zone is one of the strongest tax instruments of the Canary Islands. For Fuerteventura, it offers:

corporate tax from 4%
investment requirements from €50,000
clear, EU‑compliant regulations
ideal conditions for high‑value business activity