Security and Taxes
There are Spanish and English private schools, excellent medical facilities, effective law and order policing which provide peace of mind for residents and visitors alike.
Scholarship: for your children you have the choice among Spanish, German and English private schools as Luther King college (Spanish with English enhanced), Wingate School (only English native teachers and follows Cambridge curriculum), Costa Adeje College (Spanish/German). Each of these schools offers a private daily transport which stops at only a few minutes drive from Villa Monaco.
Medical assistance: you’ll find very modern private health hospitals in the South of Tenerife as “Hospiten” and “USP” as well as two public huge university hospitals in the north; “La Candelaria” and “Hospital Universitario de La Laguna”.
European laws: The Canary Islands although under the sovereignty of Spain has its own Government and special status within the E.E.C. This means your investments are protected by European laws.
Shelter your wealth in the Canary Islands.
The clock is ticking on tax havens – so why not keep your wealth somewhere tax-friendly, but onshore? Where should you position yourself so that you are tax compliant but at the same time paying the least amount of tax necessary? Well, the choice is yours as to how you respond in today’s market, but should you choose to come onshore, the Canary Islands may be the best option available.
Certain tax havens do not have a double taxation treaty with your country.
Therefore a person seeking tax relief from their country on the grounds that they or their company is resident in a tax haven may find such claims rejected. The Canary Islands on the other hand, whilst offering certain fiscal advantages, is considered part of the Spanish territory under EU regulation, and as a result benefits from double taxation treaties with other jurisdictions.
One of the key fiscal benefits available through the Canary Islands is in respect of corporation tax, which is levied at 4%. Certain criteria must be met for a company to qualify under this special rate, including the employment of five persons through the company and the investment of €100, 000 in the Canary Islands within the first two years following registration. This is particularly useful for companies providing services on the internet or engaged in other activity that does not have to be performed in any one particular country. Whilst there is a requirement to employ staff to qualify for the 4 per cent corporation tax, it should be mentioned that salaries are generally lower in Spain compared to other european countries, and the government is currently offering concessions to companies hiring in a bid to address the mounting levels of unemployment.
The VAT rate in Canary Islands is only 7% comparing to the 21% mainland Spain.
Future for Canary Islands
Given the changing fiscal policies across Europe in response to the economic downturn, some may question whether the advantages afforded to the Canary Islands are compatible with the internal market. Indeed, the EC considered this in a 2008 report and concluded that the tax incentives enjoyed by the Canary Islands were by no means incompatible with the internal market as the Canary Islands faced certain disadvantages due to its remote location, structure and size. With the mounting pressure on tax havens, the Canary Islands may find itself as the unintended beneficiary of a bitter battle between tax dodgers and tax collectors.