{"id":7033,"date":"2020-10-27T13:07:13","date_gmt":"2020-10-27T13:07:13","guid":{"rendered":"http:\/\/lashormigasnegras.com\/?p=7033"},"modified":"2020-11-19T12:06:25","modified_gmt":"2020-11-19T12:06:25","slug":"tax-incentives-for-animation-in-the-canary-islands","status":"publish","type":"post","link":"https:\/\/lashormigasnegras.com\/en\/tax-incentives-for-animation-in-the-canary-islands\/","title":{"rendered":"Tax incentives for animation in the Canary Islands"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">The number of animation companies settled in the Canary Islands has multiplied by four since 2015. One of the reasons is that the Canary Islands offer a series of appealing tax incentives for audiovisual production companies thanks to the <\/span><span style=\"font-weight: 400;\"><a href=\"https:\/\/www.gobiernodecanarias.org\/asuntoseuropeos\/ref\/informacion_general\/\" target=\"_blank\" rel=\"noopener noreferrer\">Canary Islands Economic and Tax Regime<\/a> (REF)<\/span> <span style=\"font-weight: 400;\">within the legal framework of the European Union and Spain. <\/span><span style=\"font-weight: 400;\">This fact, together with the weather conditions and the presence of a solid audiovisual sector, makes the Canary Islands one of the best places of Europe to receive audiovisual productions. In today\u2019s post, we show you all the reasons why the Canary Islands is the perfect home for animation production companies in the Canary Islands. Know the tax incentives for animation in the Canary Islands\u00a0here!<\/span><\/p>\n<h2><span style=\"font-weight: 400;\">Tax Incentives for Animation Production Companies in the Canary Islands<\/span><\/h2>\n<h3><span style=\"font-weight: 400;\">50 \u2013 45% deduction for foreign productions<\/span><\/h3>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">50% direct deduction of expenses made in the Islands for the first million euros.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">45% direct deduction for the rest of expenses eligible in the Canary Islands.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">The <\/span><a href=\"https:\/\/lashormigasnegras.com\/en\/production-service\/\" target=\"_blank\" rel=\"noopener noreferrer\"><span style=\"font-weight: 400;\">Production Service Company<\/span><\/a> <span style=\"font-weight: 400;\">must have its tax residence in the Canary Islands.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Maximum deduction: 18 million euros.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">0% VAT (IVA)<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">The requirements to receive this deduction are:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Minimum budget of 2 million euros.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Minimum expense of 200.000 euros in the Canary Islands.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Eligible expenses in the Canary Islands directly related to the production process:<\/span><\/li>\n<\/ul>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Creative staff with tax residence in Spain or in the European Economic Community. Maximum 100.000 euros per person.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Expenses in technical industries and other suppliers.<\/span><\/li>\n<\/ul>\n<h3><span style=\"font-weight: 400;\">50 \u2013 45% deduction for Spanish productions and co-productions<\/span><\/h3>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">50% tax credit for the first million euros of Spanish budget. 54% tax credit for the first million in certain productions.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">45% tax credit for the rest of Spanish budget.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Maximum deduction: 18 million euros.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">No minimum budget.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">No minimum expense.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Requirements:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">The Spanish producer must have a tax residence in the Canary Islands.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">A Canary Islands Audiovisual Production Certificate, nationality and culture test is required.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">15% of production time in the Canary Islands for works with a budget of over 5 million euros and 20% for works with an inferior budget.<\/span><\/li>\n<\/ul>\n<h3><span style=\"font-weight: 400;\">Canary Islands Special Zone (ZEC)<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Any company that develops activities of production or related to the audiovisual sector can become a ZEC entity. The advantage of the Canary Islands Special Zone is the possibility to have a reduced taxation rate of 4% in corporate tax, instead of the current Spanish 25%.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">This tax advantage is compatible with the above mentioned. The ZEC entities can develop a wide range of activity within the audiovisual sector, such as:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Cinematographic or video production.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Production services, filming, and post-production assistance. Dubbing, edition and reproduction of supports and engravings, and so on.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Photography and advertisement. Photography activities and film processing. Direction of catalogues, publications, and promotional material. Creation and execution of advertising campaigns.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Audiovisual distribution.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">The benefits of being a ZEC entity:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Only 4% fee of corporate tax.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Tax exemption on Property transfer and documented legal acts.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">IGIC exemption for the import of raw material, investments, or products.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Application of the International Dual Taxation.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Cancellation of the restriction to apply a deduction for double internal taxation on dividends.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Outside Spain there would be an exemption of the withholding tax, applying the International Dual Taxation upon arrival.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Suppression of the restriction for double internal taxation on dividends.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Requirements:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">To be an entity (or a subsidiary) of new creation.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">At least, one of the administrators must have a tax residence in the Canary Islands.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">To invest a minimum of 100.000 euros on fixed assets within the first two years after having registered the ZEC company.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">To create at least 5 employment opportunities within the first 6 months of activity, maintaining this yearly average for as long as the company is registered in the ZEC.\u00a0<\/span><\/li>\n<\/ul>\n<h2><span style=\"font-weight: 400;\">Other reasons to produce animation in the Canary Islands<\/span><\/h2>\n<h3><span style=\"font-weight: 400;\">Infrastructure and cutting-edge connectivity<\/span><\/h3>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Optic Fiber, high speed, and internet connection anywhere.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Supercomputer Teide HPC optimized for rendering.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">6 Submarine internet cables which connect the Canary Islands to the European continent.\u00a0<\/span><\/li>\n<\/ul>\n<h3><span style=\"font-weight: 400;\">Great Aerial Connectivity<\/span><\/h3>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">International airports with millions of passengers, yearly.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Connected to hundreds of important airports in European cities.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Between 2 and 4 flight hours to the mainland and Europe.<\/span><\/li>\n<\/ul>\n<h3><span style=\"font-weight: 400;\">Institutional Support<\/span><\/h3>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Public and private training programs.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Programs of public support for employment.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Specific events for the sector.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Inspection visits.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Tenerife is the venue for Quirino Awards and participates in important international events of animation (Cartoon, Annecy, MIP \u2026)<\/span><\/li>\n<\/ul>\n<h3><span style=\"font-weight: 400;\">Excellent quality of life to work<\/span><\/h3>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Average annual temperature of 23<\/span><span style=\"font-weight: 400;\">\u00b0C<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Affordable housing, and school prizes.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Competitive salary.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Outdoors activities all year round.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Offices near the main residential areas.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">At Las Hormigas Negras we offer <\/span><span style=\"font-weight: 400;\">Advisory Services on Tax Incentives<\/span><span style=\"font-weight: 400;\">. For more information, contact us and we will explain how to enjoy the different tax benefits to film in the Canary Islands.\u00a0<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The number of animation companies settled in the Canary Islands has multiplied by four since 2015. One of the reasons is that the Canary Islands offer a series of appealing tax incentives for audiovisual production companies thanks to the Canary Islands Economic and Tax Regime (REF) within the legal framework of the European Union and Spain.<\/p>\n<p>This fact, together with the weather conditions and the presence of a solid audiovisual sector, makes the Canary Islands one of the best places of Europe to receive audiovisual productions. In today\u2019s post, we show you all the reasons why the Canary Islands is the perfect home for animation companies in the Canary Islands.<\/p>\n","protected":false},"author":2,"featured_media":7035,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[13],"tags":[],"class_list":["post-7033","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uncategorized"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.5 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Tax incentives for animation in the Canary Islands - Know the adventages!<\/title>\n<meta name=\"description\" content=\"Animation Production Companies in the Canary Islands - Discover the tax incentives for animation producers in the Canary Islands\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/lashormigasnegras.com\/en\/tax-incentives-for-animation-in-the-canary-islands\/\" \/>\n<meta property=\"og:locale\" content=\"en_GB\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Tax incentives for animation in the Canary Islands - 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