Information on life in the Canary Islands:

Many people associate life in the Canary Islands with the sun beach and night life.

The climate, for most of the year is a dream it’s very easy to get used to and in this respect you will have no problems retiring to the islands but you must be aware of the fact that setting up a new life in Tenerife will not simply happen; Tenerife has the highest unemployment rate in Spain.

If you are a skilful person who has had a sound education and is adept with languages and you are not afraid of a challenge then you should not have too many problems setting up a new life in the Canary Islands.

As a general rule European citizens are always granted a work permit. If you intend to be self employed or to set up your own business then you must communicate your decision to the authorities some activities are regulated by franchise ruling and need special licenses and others require special formation. Any qualifications you may have must be approved by the Spanish authorities and it is not always possible to work in Spain using a qualification from another country.

The ZEC Special Canary Island Zone was created to promote the business activity and economic growth of the islands and as such companies based in the ZEC area are charged lower taxes than businesses based elsewhere on Spanish territory.

Some of the fiscal benefits of being based in the ZEC are the following:

• 4% tax on the income of companies
• no tax on capital transactions
• no IGIC is charged (Canarian Value Added Tax)
• lower rate of local taxes charged

Since the Canary Islands are part of Spain companies operating in the ZEC enjoy the benefits of the Spanish income tax treaty.

The requirements for companies in the ZEC are the following:

• New companies in Gran Canaria and Tenerife are required to create 5 new jobs and prove an investment of 10,000 euros.
• New companies in La Palma, La Gomera ; El Hierro ; Lanzarote and Fuerteventura are required to create 3 new jobs and prove an investment of 50,000 euros.