ZEC for Digital Nomads and Remote Workers in the Canary Islands

The Canary Islands for Digital Nomads: Tax Opportunities

The Canary Islands have become one of the most popular destinations for digital nomads in Europe. Gran Canaria, Tenerife and Lanzarote consistently rank in top-10 lists for remote workers thanks to their climate, infrastructure, cost of living and quality of life.

But beyond lifestyle, the Canary Islands also offer significant tax advantages for people who work remotely — including access to the ZEC regime under the right conditions.

Spain's Digital Nomad Visa

Since January 2023, Spain offers a Digital Nomad Visa (Visado para Teletrabajadores Internacionales) for non-EU nationals who want to live and work remotely in Spain.

Key requirements:

Work for companies or clients outside Spain (or max. 20% of income from Spanish clients)
Minimum monthly income: approximately €2,650 (2 × IPREM)
Clean criminal record
Valid health insurance

The visa is granted for 1 year (renewable for 2+2 more years) and can be converted into a residence permit.

For EU citizens: no visa needed — you can simply move to the Canary Islands and register as a resident.

Tax Implications of Living in the Canary Islands

Once you become a Spanish tax resident (living in Spain for more than 183 days/year), you become subject to Spanish income tax (IRPF) on your worldwide income.

However, there are legal ways to structure your affairs tax-efficiently:

Option 1: Beckham Law (Special Expat Tax Regime)

The Beckham Law (Régimen Especial para Trabajadores Desplazados) allows new tax residents to opt for a flat 24% rate on Spanish-source income up to €600,000, instead of the standard progressive rates (up to 47%).

Available for the first 6 years of Spanish tax residency. Must be applied for within 6 months of becoming resident.

For digital nomads earning from foreign clients, this can be very effective.

Option 2: ZEC Company + Salary Structure

More complex but potentially more powerful:

Set up a ZEC company in the Canary Islands
The company provides services to your international clients
You receive a salary from the ZEC company
The company's profits (taxed at 4%) stay in the company and can be reinvested

This structure requires:

Genuine business activity and substance
Meeting ZEC employment and investment requirements
Professional tax and legal advice (the rules are specific and compliance is essential)

Option 3: Spanish Autónomo (Freelancer)

The simplest option: register as self-employed in the Canary Islands and benefit from:

IGIC at 7% instead of 21% mainland VAT (some services exempt)
Canary Islands income tax deductions
Flat fee for the first 3 years of autónomo registration (€80/month in 2026)

Not as tax-efficient as the ZEC, but simpler for solo freelancers with lower income.

Which Option Is Right for You?

Profile	Recommended Structure
Freelancer, <€50K/year	Autónomo + Beckham Law
Freelancer, €50–150K/year	Autónomo + Beckham Law or ZEC company
Business owner, >€150K/year	ZEC company
Employee of foreign company	Digital Nomad Visa + Beckham Law

Practical Life in the Canary Islands

Beyond tax, here's what makes the Canary Islands work for remote workers:

Coworking spaces: Las Palmas has a thriving digital nomad scene with excellent coworking options
Internet: fast and reliable fiber connections throughout Gran Canaria and Tenerife
Cost of living: significantly lower than London, Amsterdam or Munich — comparable to Lisbon or Porto
Time zone: GMT+0 (winter) / GMT+1 (summer) — ideal for working with European clients
Healthcare: public healthcare available for residents, private insurance affordable
English: widely spoken in tourist and business areas

Free Consultation

If you are considering relocating to the Canary Islands and want to understand your tax options, we offer a free initial consultation.

📞 +34 633 572 607 📧 lazaroammen@gmail.com

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