ZEC Guide 2026: The 4% Corporate Tax in the Canary Islands
Everything foreign founders and investors need to know about the EU's lowest corporate tax regime — requirements, application process, substance rules, comparison with other EU regimes, timeline and costs. Written by an English-speaking law firm in Las Palmas de Gran Canaria.
- What the ZEC is and who can apply
- Employment & investment requirements by island
- Substance requirements in practice
- The 4% tax base and its caps
- ZEC vs Ireland, Malta, Cyprus & Portugal
- Application process step by step
- Realistic timeline (6–10 weeks)
- Costs and annual compliance
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What's inside the guide?
The ZEC (Zona Especial Canaria) lets qualifying companies pay 4% corporate income taxinstead of Spain's standard 25% — the lowest statutory rate in the EU, fully authorised by the European Commission. But the regime has real requirements, and most of the information available online is incomplete or outdated.
In this guide you will find:
- Eligibility requirements — employment and minimum investment thresholds, island by island
- Substance requirements — what "real economic activity" means in practice
- The application process — from company deed to ZEC Consortium authorisation
- ZEC vs other EU regimes — how it compares with Ireland, Malta, Cyprus and Portugal
- Realistic timeline — the full setup typically takes 6–10 weeks
- Costs and annual compliance — what to budget for, with no surprises
The guide was written by Lázaro Héctor Amable Méndez (Bar No. 5,231 ICALPA), lawyer in Las Palmas de Gran Canaria. It is the same information you would get in a first consultation — in writing, so you can read it at your own pace.
Prefer to talk directly?
The initial consultation is free and in English. We will tell you whether the ZEC fits your business, what it requires and how long it takes.