Dmitri Mihhailov
Managing Partner
Founder of Prifinance. 15+ years structuring international companies, banking and licensing for founders worldwide.
Register a company in Tenerife, four percent under the volcano.
Set up in the Canary Islands' ZEC: a Brussels-approved 4% corporate tax inside Spain, inside the EU, with a 7% local tax instead of VAT and Europe's best climate for the team you'll hire. The deal comes first - the 4% is bought with real jobs and investment, approved by the ZEC Consortium before anything incorporates.The Canary ZEC remotely: a Brussels-approved 4% inside Spain and the EU, 7% IGIC instead of VAT, and Europe's easiest hiring for the jobs the regime requires. The deal: 5 jobs, €100k invested, Consortium approval first.
27 yrs
on the international marketon the market
60+
in-house specialistsspecialists
6,000+
companies servedcompanies served
Updated
Tenerife · at a glance
Legal formSL - ZEC entity
Time to set up4-8 weeks
ZEC rate4% - qualifying income
IGIC (not VAT)7% general
Conditions5 jobs · €100k invested
Remote setupYes - NIE + POA
4.7
★★★★★
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Tenerife & the Canaries in brief
Spain's 4% answer, approved in Brussels.
The Canary Islands run the EU's other licensed low-tax zone: the ZEC (Zona Especial Canaria), a state-aid regime Brussels approves under the islands' outermost-region status, taxing authorised companies at 4% on qualifying income - inside Spain, inside the EU, with Spanish treaties and the Beckham regime available upstairs. The islands sit outside the EU VAT territory: instead of 21% IVA you charge 7% IGIC, and the RIC reserve lets profitable companies deduct up to 90% of retained profit against island reinvestment. Around the tax sits the lifestyle that staffs it: Europe's best climate made Tenerife and Las Palmas remote-work capitals, so the hiring the ZEC requires comes easier here than anywhere.
The 4% is a contract with the Consortium, and its terms are public: authorisation comes before incorporation, the company must invest €100,000 in fixed assets within two years (€50,000 on the smaller islands) and create five jobs within six months (three on smaller islands), and the 4% applies to a taxable-base allowance that grows with headcount. Activities are listed (services, tech, industrial, audiovisual - pure holdings and most finance sit outside). Spanish machinery is inherited: NIEs first, notary, Registro Mercantil. Real teams qualify beautifully, and the film industry's separate 50%+ Canary deductions deserve their own mention. A brass plate won't pass the Consortium, which is rather the point.
The EU's other licensed low-tax zone: 4% on qualifying income under outermost-region state aid - with Spanish treaties, Beckham upstairs, IGIC at 7% instead of VAT, and the RIC deducting up to 90% of reinvested profit. The nomad wave staffs it.
Authorisation precedes incorporation, five jobs in six months (three on small islands), €100k in two years, a base allowance growing with hires, listed activities only - holdings and most finance excluded. Spanish machinery (NIEs, notary) inherited and carried.
Packages & pricing
Canary Islands company - cost & packages.
01 - SL · ZEC ENTITY
Company
from€2,900EUR · all-in
Registration of a Canary SL with the ZEC track - NIEs, the Consortium application, incorporation, tax registrations and the first year of the registered address included.
✓NIE numbers for founders - by POA✓ZEC Consortium application & business plan✓Notarial deed & Registro Mercantil✓Registered address in Santa Cruz - first year✓IGIC & census registrations handled✓Free pre-qualification consultation
Optional add-ons: RIC planning - from €700 · film-incentive structuring - scoped per case · accounting - from €220/month · renewal - from €2,200/year.Add-ons: RIC planning from €700 · film incentives per case · accounting from €220/month · renewal from €2,200/year.
Start with Company →02 - SL · ZEC ENTITY
Most popularCompany + Bank Account
from€4,900EUR · all-in
A working ZEC company with a Spanish account - a fintech live in days, traditional banking in parallel.
✓Everything in Company✓Account with a Spanish bank or fintech✓Account application & KYC file preparation✓Introduction to 2-3 suitable institutions✓Compliance onboarding support✓Dedicated account manager
Start with Banking →Starting points, confirmed at pre-qualification. ZEC Consortium, notary and registry fees are itemised.Starting points, confirmed at pre-qualification. Consortium and registry fees itemised.
What you can do
Popular uses for a ZEC company.
The ZEC list covers services, tech, industry and audiovisual. Pure holdings and most financial activity sit outside. We check your NACE codes first.The ZEC list: tech, industry, audiovisual, logistics. Holdings and most finance excluded.
Tech & digital serviceslicensed
Development, SaaS and digital agencies at 4%. Hiring from the nomad wave already on-island.
Audiovisual & filmlicensed
The Canaries' famous production deductions (50%+) stack with island infrastructure.
BPO & support centreslicensed
Multilingual teams in the EU's best-climate labour market.
Trading & logistics
Atlantic tri-continental position with special customs status and the port of Santa Cruz.
Renewables & marine
Wind, solar and ocean-tech pilots the islands actively court.
E-commerce operations
Fulfilment and operations under IGIC economics. Planned around the VAT-territory line.
Tech & digital serviceslicensed
4% with on-island talent.
Audiovisual & filmlicensed
50%+ deductions stack.
BPO & supportlicensed
Best-climate labour market.
Trading & logistics
Tri-continental Atlantic.
Renewables & marine
Actively courted pilots.
E-commerce operations
IGIC-planned fulfilment.
Why Tenerife
Key advantages of the jurisdiction.
✓
4% with EU blessing
A Brussels-approved rate inside Spain. Not a haven, a licensed outermost-region regime.The lowest licensed rate.
✓
IGIC - 7%, not VAT
The islands sit outside the EU VAT area: 7% general IGIC changes consumer-facing math.Outside the EU VAT area.
✓
RIC - up to 90%
The reinvestment reserve deducts retained profit against island investment. Stacking on the 4%.Reinvestment deducted.
✓
The hiring story
Europe's remote workers moved here voluntarily. The ZEC's jobs are easier to fill than anywhere.Nomads already moved in.
✓
Spain upstairs
Treaties, Beckham, EU membership. The full Spanish toolkit above the island rate.Treaties + Beckham.
✓
Film-deduction stack
The Canaries' audiovisual incentives are among the world's richest. A parallel regime we run.World-class incentives.
How it compares
The ZEC next to the licensed low-rate shortlist.
Madeira is the Atlantic twin at 5% with the MAR register; Malta refunds to ~5% through mechanics; Ireland and Cyprus charge 12.5% without job strings. The ZEC is the 4%. With Spanish plumbing and the easiest hiring of the set. Figures current as of 2026.Madeira: 5% + MAR. Malta: refund maze. Ireland & Cyprus: 12.5%, no strings. The ZEC: 4% priced in jobs. As of 2026.
| Regime | Effective rate | Conditions | Signature edge |
|---|---|---|---|
| Canary ZEC | 4% | 5 jobs · €100k | Lowest licensed rate · hiring |
| Madeira IBC | 5% | 1-6 jobs · €75k | MAR shipping register |
| Malta refunds | ~5% | Refund mechanics | Complexity as a feature |
| Ireland | 12.5% | Trading substance | English + ecosystem |
| Cyprus | 12.5% | Light | Non-dom dividends |
Canary ZEC4%
Effective rate4%
Conditions5 jobs · €100k
Madeira IBCMAR
Effective rate5%
Conditions1-6 jobs
MaltaRefunds
Effective rate~5%
Conditionsmechanics
Ireland12.5%
Effective rate12.5%
Conditionstrading
CyprusNon-dom
Effective rate12.5%
Conditionslight
Requirements
What the ZEC actually demands.
01
Consortium authorisation - The ZEC Consortium approves the business plan before incorporation. The gate we prepare for.
02
Jobs - 5 within 6 months - Five positions on Tenerife or Gran Canaria (three on smaller islands), maintained as an average.
03
Investment - €100,000 - In fixed assets within two years (€50,000 on smaller islands). Real, auditable spend.
04
Base allowance - The 4% applies to a taxable base that starts at €1.8M for five jobs and grows per hire. We model yours.
05
Listed activities - Your NACE codes must sit on the ZEC list. Checked before anything is filed.
06
Spanish machinery - NIEs, notary, Registro Mercantil, IGIC filings. Inherited from Spain, carried by us.
How it works
From application to a 4% company in weeks.
The ZEC runs approval-first: the Consortium clears the plan, then the SL incorporates into the regime - NIEs in parallel throughout.Pre-qualification free, NIEs day one, Consortium approval (2-4 weeks), then incorporation: 4-8 weeks; the jobs clock calendared at entry.
01Same day
Pre-qualification
Activities, jobs and investment tested against the ZEC rules before you spend.
021-3 weeks
NIEs & KYC
Founders' foreigner IDs by POA. Started day one, everything queues behind them.
031-2 weeks
Consortium file
Business plan and application to the ZEC Consortium.
042-4 weeks
Authorisation
The Consortium approves; the ZEC registration reserves.
052-3 weeks
Incorporation
Notarial deed, Registro Mercantil, census and IGIC registrations.
061-2 weeks
Banking & hiring
Account opened; the six-month jobs clock calendared from ZEC entry.
Quick facts
Legal formSL - ZEC entity
ZEC rate4% qualifying
Jobs5 (3 small islands)
Investment€100k / €50k
Total timeline4-8 weeks
IGIC7% general
Renewal & accountingFrom €2,200/year
The jobs and investment clocks start at ZEC registration - we calendar both at authorisation, because the Consortium audits what it approves.
On the ground
On the ground in the Canaries.
Prifinance - Canary Islands
Santa Cruz de Tenerife
Santa Cruz de Tenerife, Spain
01
ZEC specialists
Your setup is run by a team that files Consortium applications and Canary incorporations every month.
02
NIEs & registry handled
Foreigner IDs, deed, Mercantil, IGIC. The Spanish machinery carried for you.
03
Substance the Consortium accepts
Hiring plans and investment calendars sized to the base allowance. So the 4% survives audit.
04
Also in Tallinn, London, Dubai & more
A network of offices across Europe, the Gulf and the Americas. One team for your whole international structure.
We also have offices in
Tallinn
Estonia
Roseni 13
Hong Kong
Hong Kong
5/F, Yau Lee Centre, 45 Hoi Yuen Road, Kwun Tong
Vilnius
Lithuania
Gedimino pr. 2
London
United Kingdom
7 Bell Yard
Prague
Czech Republic
Vlkova 532/8, Žižkov
Berlin
Germany
Rankestraße 26
Madeira
Portugal
Rua da Alegria 31, 1F
Budapest
Hungary
Korányi Sándor u. 4
Istanbul
Türkiye
Perpa Ticaret Merkezi, A Blok
Dubai
UAE
33 Level, Al Saqr Business Tower
Toronto
Canada
1110 Finch Avenue West, suite 406
Singapore
Singapore
3 Church Street, #29-68 Samsung Hub
Bangkok
Thailand
Unit P01, Penthouse, VASU1, 1 Sukhumvit 25 Alley
Foshan
China
A-Tower, Yuneng Digital Plaza, 46 Lishui Avenue South
Almaty
Kazakhstan
Republic Square 13
Bishkek
Kyrgyzstan
32 Razzakov Street
Taxation 2026
Four licensed, seven at the till, ninety reinvested.
ZEC entities pay 4% on qualifying income within a base allowance that grows with jobs; income beyond it pays Spain's standard rates. The islands charge 7% IGIC instead of EU VAT, and the RIC reserve deducts up to 90% of retained profit committed to island reinvestment. Dividends follow Spanish rules - with EU-parent and treaty relief upstairs.4% within the jobs-linked base, 7% IGIC at the till, up to 90% RIC on reinvested profit - Spanish rules and relief upstairs.
ZEC - 4%
On qualifying income within the jobs-linked base. The contract with Brussels.Base grows with hires.
IGIC - 7%
The Canary indirect tax replaces VAT. The islands sit outside the EU VAT territory.Instead of EU VAT.
RIC - up to 90%
Retained profit reserved for island investment deducts from the base - stacked deliberately.Island reinvestment.
Spain upstairs
Treaties, EU directives and Beckham for relocating executives. The full kit above the rate.Treaties + Beckham.
Levies in 2026
ZEC qualifying income4%
Base allowance (5 jobs)€1.8M+
IGIC (general)7%
RIC reserveUp to 90%
DividendsSpanish rules · EU relief
Renewal & accountingFrom €2,200/year
The Consortium audits jobs and investment against what it approved - our calendar keeps the 4% earned, not just claimed.
Your team
The specialists who'll handle your case.
Eugeniu Bevziuc
International Business Consultant
Guides clients from the first consultation to a working setup - companies, accounts and substance in 60+ jurisdictions.
Alex Danila
Corporate Services Specialist
Handles incorporation paperwork, KYC and bank introductions so your Canary Islands company launches without delays.
Follow Prifinance
Active across our channels.
Watch: opening a company in Tenerife with Prifinance
The EU's lowest licensed rate on its sunniest islands - Consortium, company, bank and hiring under one roof. Full support, start to finish.
Talk to a specialist →FAQ
The ZEC in ten questions.
Can I open a ZEC company without visiting?+
Yes. NIEs, the Consortium application, the deed and registrations all run by power of attorney; fintechs onboard by video. Most founders first fly in when hiring starts, and the islands make that an easy sell.
How much does it cost?+
Turnkey registration with the ZEC track starts from €2,900 including NIEs, the Consortium application and the first-year address; with banking from €4,900. Renewals with accounting run from €2,200 a year. The real budget lines are the €100,000 investment and five salaries - which is the point, and we model them upfront.
How does the 4% actually work?+
Authorised ZEC entities pay 4% corporate tax on qualifying income within a taxable-base allowance (€1.8 million for the minimum five jobs, growing with each additional hire); income above the allowance pays standard Spanish rates. Authorisation precedes incorporation, and the Consortium audits the commitments. It is Europe's lowest licensed rate, priced in jobs.
What are the jobs and investment requirements exactly?+
On Tenerife and Gran Canaria: five jobs created within six months of ZEC registration and maintained as an annual average, plus €100,000 invested in fixed assets within two years. The smaller islands halve it: three jobs, €50,000. The remote-work wave made Canary hiring unusually easy - the requirement is real but, here, fillable.
What is IGIC and why does it matter?+
The Canaries sit outside the EU VAT territory: instead of Spain's 21% IVA you operate under IGIC at a general 7% (with reduced and zero bands). For consumer-facing business the till math changes materially; for B2B exports services flow much as before. Cross-border invoicing between the islands and the mainland has its own rules - we configure them at setup.
What is the RIC?+
The Canary reinvestment reserve: companies can deduct up to 90% of undistributed profit committed to qualifying island investment within set deadlines (assets, job creation, certain securities). Stacked with the ZEC's 4% where compatible, or used by non-ZEC island companies, it is the second engine of Canary planning, and it runs on calendars we track.
Which activities qualify?+
The ZEC list spans tech and digital services, industrial production, audiovisual, logistics, R&D, call centres and more, while pure holding companies and most regulated financial activity sit outside. Your NACE codes are the first thing we check, before any file is opened.
ZEC or Madeira?+
The Atlantic twins again, from the other shore: the ZEC is a point cheaper (4% vs 5%) with easier hiring and the IGIC bonus; Madeira answers with the MAR ship register, lighter minimum-job options and Portuguese plumbing. Shipping goes to Funchal; teams and production usually land here. We run both files and let the numbers argue.
How is banking?+
Spanish-normal: Santander, BBVA, CaixaBank and the fintechs onboard with standard KYC once NIEs exist. ZEC status reads as legitimacy - the Consortium's approval is due diligence a bank respects. We prepare the file and route to the right desk.
How long does it take?+
Plan four to eight weeks end to end: NIEs (one to three weeks, started day one), the Consortium file and its two-to-four-week review, then incorporation and registrations. The jobs clock starts at ZEC entry (six months to five hires), and we calendar it at authorisation, because the regime rewards those who treat its deadlines as real.
Client notes
Google4.7★★★★★
Founders who wanted it done right.
Google4.7★★★★★
“As a software development crew at FewMoreTaps OÜ, we've had the pleasure of working with Prifinance on some key financial moves.First of all, navigating the world of corporate banking and finance can be a maze, but Prifinance made it feel like a walk in the park. They helped us set up a corporate bank account without the hassle of jumping on a plane or drowning in paperwork. Everything was done remotely, smoothly…”
Google
“I had their assistance in company registration and I would recommend them. They were answering all my clarification during the process and offering all their supportThank you Daniel and Irinia”
Google
“We found PRIFINANCE COMPANYvia the Internet and asked for help in organizing the opening of their company in Estonia. PRIFINANCE COMPANY specialists helped us a lot with this. Their professional, competent approach and knowledge of their business left us with only the best impressions.”
Google
“I'm thrilled with my experience with PriFinance! They helped me obtain a crypto license in Estonia without any hassle. The team was super understanding and always available to answer my questions and assist. It was great to see how they put effort into preparing the documents to ensure everything went smoothly. I'm delighted with the outcome and highly recommend PriFinance to anyone looking to get a license…”
Google
“Opening an account with Prifinance in a Swiss bank was such an easy and quick process that I was shocked. It all started with the first call, where I received detailed guidance on the required documents and the entire procedure.One of the key highlights was their attention to detail. As someone who usually gets tangled up in paperwork, I was pleasantly surprised when they sent me all the documents and…”
Google
“I recently had the pleasure of working with Boris.. and I must say, it was a fantastic experience. Boris went above and beyond to assist me with my residency needs. His professionalism, knowledge, and dedication truly stood out. I highly recommend working with Boris and the team!”
Google
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✓No obligation; pre-qualification is free✓Substance math tested before you spend✓Transparent fixed fees, confirmed up front✓EN · RU · ES speaking team