Invest in The Canary Islands
Giambrone & Partners Law Firm in Canaries
Trust and expertise are key to ensuring financial peace of mind for expats in the Canary Islands.
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Giambrone & Partners SLP is an award-winning full-service law firm operating through a network of offices in Barcelona, Birmingham, Catania, Glasgow, Gran Canaria, London, Lyon, Madrid, Manchester, Milan, Porto, Rome, Naples, Salerno, Sardinia, Tunis and Palermo.
We are one of the most comprehensive and experienced wealth management Law Firm around and our range of corporate & commerciale services covers all your needs whether you are in the world and in Canary Islands.
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If you want to invest as an expat or high-net-worth individual, you can
Organizational and legal forms
Registration of a company in Tenerife, as in any other jurisdiction, begins with the choice of the legal form of the enterprise. Therefore, it should be borne in mind that on the territory of the specified state you can open:
• Limited Liability Company (Sociedad de Responsabilidad Limitada or SL) – an organization that can be created by individuals or legal entities with a share capital divided into shares;
• Joint stock company (Sociedad Anonima or SA) – a company with shares divided by a certain number, which can easily be transferred to other persons;
• A private enterprise (Empresario Individual or Autonomo) is an enterprise owned by individuals or legal entities.
• have at least one director (can be both an individual and a legal entity, with no residency requirements);
• contribute the authorized capital, the amount of which will not be less than 3000 EUR;
• obtain a certificate of registration of the company name;
• receive an open deed of registration of a company in Tenerife, certified by a notary;
• apply for a company tax identification code (NIE).
An agreement is concluded with an assessor (economic lawyer) to conduct the affairs of the company;
— Three options for the name of the company are selected and through an assessor, or independently sent to the central registration authority. The names are arranged according to preference in descending order. The response time is about a month. The permission to use the company name is valid for two months;
— Upon registration of the name of the company, a savings account is opened in a Spanish bank and the full amount declared by the proposed Charter of the company is deposited into the newly opened account;
— The Charter of the society being created, prepared jointly with the assessor, is certified in the presence of all members by a notary;
— The seal of the company is made (forms, business cards and other attributes of the company are made at the discretion of the members of the company;
— The certified Charter of the company is sent for registration to the Spanish Chamber of Commerce to enter the company in the unified state register and to the fiscal authorities to obtain a tax number (CIF), and, if necessary, to the licensing authorities.
— A newly registered company can start working after the completion of registration with the above bodies.
Benefits of living in the Canary Islands
The Canary Islands offer a unique quality of life, thanks to their location in the North Atlantic Ocean, their volcanic geography and their diverse history and heritage.
For business owners and entrepreneurs, the Canary Islands is a uniquely advantageous place to live because of the Canary Islands Special Zone (ZEC), which means companies incorporated there only have to pay 4 per cent corporation tax, compared to 25 to 30 per cent elsewhere in the European Union. What’s more, dividends distributed by subsidiaries in the ZEC to parent companies in the EU are exempt from tax, and companies in the ZEC pay no transfer tax or stamp duty. If you are a business owner or you are keen to start a business in the Canary Islands, Giambrone & Partners can advise you on the many tax benefits the region has to offer, including remarkably low VAT compared to the rest of Spain.
The cost of living in the Canary Islands is dramatically lower than other parts of Spain, with rents 39.19 per cent lower than in Madrid and groceries 10.4 per cent lower than in Barcelona. But the added value offered by the islands comes in many forms. Las Palmas, sitting in the middle of the ocean where trade winds constantly breeze through, boasts the cleanest air of any Spanish city and studies have found that it benefits from the most pleasant urban climate in the world. Add to that the slower pace of life and the abundant natural beauty of towns, cities and villages on the Canary Islands and you start to get a sense of the wellbeing they offer their inhabitants.
People often think of the Canary Islands as a remote getaway, and it can certainly provide tranquillity if you want it, but life is very much thriving on the archipelago. Gran Canaria in particular has the fast life on tap, with its excellent schools, an outstanding university, modern healthcare facilities and transport networks, and an airport with regular flights all over Europe and Africa. Moving to the Canary Islands gives you the best of both worlds if you want an aspirational lifestyle in a laid-back atmosphere.