The Zona Especial Canaria (ZEC) is a low-tax regime that lets companies operating within its scope pay just 4% Corporate Income Tax on profit tied to their authorised economic activity, well below Spain’s standard 25% rate. This isn’t new – it has been a cornerstone of the Canary Islands’ special Economic and Fiscal Regime (REF) for years – but there’s a date worth marking now: the deadline to register new entities in the Official ZEC Entities Registry closes on 31 December 2026, under EU Regulation 651/2014. After that date, no new registrations will be accepted unless the European Commission approves a renewal.
Crucially, anyone who registers in time doesn’t lose the benefit when the deadline passes: entities registered before the cut-off keep the tax advantage until 31 January 2032. In other words, registering now isn’t just about beating the deadline – it locks in up to six extra years of reduced taxation compared with waiting.
The requirements (and the timeframes that come with them)
The ZEC isn’t a simple registration formality: it requires a genuine commitment to investment and job creation, on specific timelines worth planning for in advance. On investment, the entity must commit a minimum of €100,000 if based in Gran Canaria or Tenerife, or €50,000 on the other islands, materialised within the first two years of registration. On employment, a minimum of 5 jobs is required in Gran Canaria and Tenerife, or 3 jobs on the other islands, created within six months of registration and maintained throughout the period the regime is enjoyed.
The activity also needs to fall within the catalogue of activities authorised by the ZEC Consortium, which is broad -covering business services, IT and telecoms, logistics, audiovisual production and tourism, among others- but not unlimited: it’s worth confirming your specific activity qualifies before taking any further steps.
What this means for your business if you register before 31 December
If you run an operating company, or are weighing up a new corporate structure with genuine activity in the Canary Islands, now is the time to assess whether the ZEC fits: the tax saving compared with the standard rate is substantial, and unlike shorter-lived incentives, this one runs through to 2032. The earlier the process starts, the more room there is to meet the investment and hiring deadlines without a last-minute scramble, and to resolve any doubts about whether your specific activity qualifies.
At EBF we’ve spent years helping companies and international groups set up ZEC entities, from assessing fit through to handling the full application. If you want to know whether your project meets the requirements before the deadline closes, let’s talk.