• Novara Capital Group

How Tenerife & Gran Canaria could be your company’s solution to trading with the EU after BREXIT?

Author: Selina Akhtar


Credits to TuiGroup for the article.


https://www.tui.co.uk/destinations/europe/spain/tenerife/articles/why-tenerife-is-the-new-rio


EU Company Formation After BREXIT?


Many clients have been researching potential locations to open an office within the EU in preparation for the BREXIT results.


Uncertainty over the United Kingdoms relationship with the EU post-BREXIT has caused concern for business owners and investors alike.


Equally, BREXIT, like most situations, isn’t without its silver lining. Many business owners are realising the full extent of the opportunities enabled to them by having a Corporate Structure in the European Union.


The Canary Islands offers BREXIT business owners the opportunity to own a company in the EU zone and access Onshore Tax Incentives fully authorised by the European Commission.



The Canary Islands Tax Incentives, are part of a permanent “Ultra Peripheral Regions” status unlike those of Cyprus, Malta, and other EU locations. What this means is, due to the distance between the Canaries and their parent country “Spain” they provide a more “Secure and Stable” longer-term option when considering where to position your business. Specifically, both Investors and Business Owners alike can position their businesses in the Canary Islands enjoying the following;


  • Corporate Tax Rates a low as 2.5 – 4%

  • Invoice EU clients

  • Trade in the Euro without need for currency transfers

  • Freedom of movement of funds due to onshore status

  • In certain cases, exemption from withholding tax

  • No double taxation due to bi-lateral agreements

  • Exemptions on Stamp Duty and Transfer Tax

  • VAT rate of just 7% in the EU


More importantly, SME owners are able to transparently, retain profits, build equity value and responsibly prepare for an eventual exit enjoying a much higher valuation price. They’re advantages to having a base both inside and outside the EU, clearly, the Canary Islands have a unique offering.

Novara Capital Group is an international tax & capital investment consulting firm. We specialise in Corporate Structuring, European Union Tax Incentives, IP Positioning, and Transactions / M&A. We provide intelligent corporate structures, advice, and an integrated service which cross delivers in businesses. We advise companies globally to accelerate international growth, optimise net profits, and enhance equity value leveraging Intellectual Property and Licences. Our in-house experts specialise in International Tax Law, Company Law & Cross Border Jurisdiction, Investment & Asset Management, Mergers & Acquisitions, and Operational Management.


Get in touch today to arrange an introductory conversation for more information.


Email: welcome@novara.group


London Tel: +44 207 129 7086

Spain Tel: +34 910 085 807


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