Canary Special Zone (ZEC)
A tax regime that lets qualifying companies established in the Canary Islands pay a reduced corporate tax rate of 4%, subject to activity, investment and job-creation requirements.
The Canary Special Zone (Zona Especial Canaria) is the flagship of the islands’ tax framework. Qualifying companies can pay a 4% corporate tax rate instead of the standard 25% Spanish rate.
How the 4% rate works
The 4% rate does not apply without limit. It applies to a maximum taxable base that scales with the jobs the company creates.
The ceiling runs from €1,800,000 for a company at the minimum headcount up to €50,000,000 for larger employers. Profit above the ceiling is taxed at the ordinary rate.
Who can qualify
A ZEC entity must be newly incorporated in Spain, with management in the Canary Islands and an eligible activity.
Within two years it must meet a minimum investment and create minimum jobs. The thresholds are €100,000 and 5 jobs in Tenerife or Gran Canaria.
In the smaller islands the figures fall to €50,000 and 3 jobs. The Consorcio de la ZEC keeps the eligible-activity list and the official register.
Legal basis and sources
Legal basis: Ley 19/1994, the Canary economic and fiscal regime (REF), as amended and aligned with EU State aid rules.
Figures and the eligible-activity list come from the Consorcio de la ZEC (www.zec.es), the primary source. Confirm your case with a qualified adviser.
Last reviewed: June 2026.