Spain Offshore

Is Spain a true offshore tax jurisdiction?

Does the concept of Spain Offshore exist?

Paying tax in the kingdom of Spain used to be fairly optional!  Today that is unfortunately most certainly not the case!  Spain is not considered to be an offshore centre, offshore tax jurisdiction or low taxation country. 

That said, taxation in Spain is still generally lower than the EU average.

Furthermore, as Spain is made up of different Autonomous Communities the Canary Islands in particular could be considered as being Spain offshore as they have made interesting use of their right to establish their own fiscal and economic systems.

Spain Offshore Part One

The Canary Islands Zone Especial Canarias (ZEC) was created to encourage economic development throughout the islands.  A manufacturing, commercial or service related company may register in the ZEC and benefit from certain significant ‘offshore’ tax breaks.

The Canary Islands aren’t just an offshore tax jurisdiction, they also benefit from fantastic weather, decent infrastructure and facilities and are highly accessible from mainland Europe and the US.  All these facts makes the ZEC offshore zone a very popular base for many companies wishing to make use of the taxation breaks available there.

Spain Offshore Part Two

Other interesting tax anomalies in Spain include the special and favourable tax schemes for ‘co-ordination centres’ or headquarters of large foreign multinational companies in the Autonomous Communities of Basque and Navarre, the fairly mild holding company tax regime and also the Venture Capital Fund legislation which also offers fairly generous tax breaks.

If you live in Spain, are thinking of moving to Spain or establishing a business there feel free to get in touch. We have a lot of information that could be of use to you, alternatively we can put you in touch with taxation or offshore investment specialists who may be able to reduce your taxation burden.

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