About the Canary Islands

If sun, sea and sand is what you are after, then the canary islands are the place for you.
This Beautiful group of islands, with a stunning year round climate, some of the best beaches of fine golden sand in Europe. The Canary Islands consist of 7 main islands (Gran Canaria, Fuerteventura, Lanzarote, Tenerife, La Palma, Gomera, Hierro) aswell as a few smaller ones (Alegranza, Graciosa, Montaña Clara, Roque del Este, Roque del Oeste und Lobos), all with starkly contrasting landscape and breathtaking scenery.

The Canary Islands are now one of the most popular tourist destinations on the planet, with flights to the Canary Islands regularly from most of the Major European cities. The booming tourist industry has lead to northern Europeans moving to the Canary Islands to live and retire making the Canary Islands very popular among foreign property buyers and investors.

Situated just 1120 km south of Spain and 112 km west of Morocco, the sand dunes of Fuerteventura, the cliffs of Tenerife, the Forests of La Gomera and the beaches of Fuerteventura are closer than you think with flights to the Canary Islands from Northen Europe coming more and more regular. The Canary Islands have lots of great investment property for sale, and because of the climate the good infrastructure and the tax free benefits, the canary islands are great places to buy property for sale abroad.

The privileged location of the Canary islands means that the primary recreational activities in the Canary Islands are water sports, like Scuba diving, surfing and windsurfing. Contact us if you would like more information about golf courses, international schools and shopping, these are important considerations when choosing an area to buy real estate property on the Canary Islands.

Once termed ‘the Fortunate Islands’ by the Romans, the Canary Islands were formed by massive volcanic forces about 30 million years ago, although the Islands’ history is shrouded in mystery. Some historians claim that the legendary continent Atlantis was located here, Christopher Columbus even stopped in the Canary Islands on his voyage of discovery to the New World.

However, through all the myths, the Canary Islands are still thought of as a garden of Eden or Alyssium. This idea has remained and today the Islands continue to attract visitors from all over the world. If you like the sound of buying property in the Canary Islands, contact us and speak to one of our area specialists.

So, If you are interested in property in the Canary Islands, you really can’t go wrong due to its popularity and great property price appreciation.

 

The Canary Islands: Is It Time To Make A Permanent Move?

For many people, it might be a distant dream, but with great communication and flight connections between a majority of destinations, it is easier than you might think to escape your working life’s hectic pace by moving abroad.

The Canary Islands meet many of the qualifications and make it the perfect setting for a higher quality working life or stress-free and happy retirement. There are seven islands for you to choose from, and we are going to provide you with a useful guide to some of the important practical and financial issues that you might not have considered yet.

Working in the Canary Islands

Brexit has motivated numerous individuals to move their businesses abroad. One favourite is the Canary Islands since it offers the most preference tax rates in all of Europe. The following is an overview of the most significant incentives:

Although the Canary Islands belong to the European Union, they are considered to be outside of the territorial scope subject to the Spanish value-added tax (VA). In addition, rather than the 21% Spanish VAT rate they have an IGIC 7% general rate.

Businesses that are established in the Canaries are able to benefit from tax credits for investing in Western African countries, and also for certain exporting activities (15% for certain advertising expenses and 15% for investments made in permanent establishments or incorporation of subsidiaries)

The Reserve for Investment (RIC) in the Canary Islands enables businesses to lower their taxable profits by up to 90% through reinvesting in certain Canary Island qualifying assets (limited companies and sole traders).

Businesses that are established within the Canary Islands might benefit from additional deductions compared to Spain’s general tax deduction system. They include innovation, development, and research, to acquiring fixed assets or film productions.

Healthcare

If you make national insurance contributions and register to work in Spain, you can receive the same state-run health care that Spanish nationals get. As a retired individual receiving a UK old age state pension, you may contact the Overseas Healthcare and request an S1 Form to register in Spain for free healthcare. The law protects access to healthcare by pregnant women and children.

If there are no means for you to receive cover for state-run healthcare, then there is a special pay-in scheme that is offered by regional health authorities in Spain. The public health insurance scheme is available nation-wide. A monthly fee must be paid to get access to state-run healthcare, and each autonomous region manages the scheme.

For individuals under the age of 65, the basic monthly fee costs €60 and for those 65 and older the fee is €157. However, there is no subsidy on prescriptions and you will have to pay 100% of your prescription costs. At this time this type of cover doesn’t provide holders with EHIC, so if you are planning on travelling, then you should consider getting private travel insurance. Check with your chosen region to make sure that the scheme is available there.

Retiring in the Canary Islands

If you would like to improve your life, then you might want to consider retiring abroad. Among expats searching for a retirement that offers both a sunny climate and low cost of living, Spain is very popular. Income tax might be higher due to having a lower personal allowance compared to the UK, however, your savings will still take you further than and provide you with a higher standard of living and comfortable lifestyle.

Canarian special zone (ZEC)

In January 2000 the European Commision authorised ZEC as a low tax zone for the Canary Islands. New Companies carrying out activities that the ZEC Consortium Board has authorised receive numerous benefits:

Reduced 4% Corporate Income Tax rate as opposed to the current 25% rate.

Exempt from Stamp Duty Tax and Property Transfer Tax.

Exemption from operations involving other ZEC companies and exempt from IGIC on imports (on both finished products or investment materials and raw materials).

Dividends that a ZEC company sents to the parent company located outside of Spain are exempt from having pay tax at the source. The International Double Taxation Agreement is applied at the destination.

ZEC company requirements:

Must be a new branch or company

One administrator at least must be residing in the Canary Islands

Invest a minimum of €50,000/€100,000 (depending on whether it is a smaller island or a capital island – Gran Canaria or Tenerife)

Create a minimum of three jobs/five jobs (depending on whether it is a small or large island, as above).