top of page
  • Novara Capital Group

“Question Time” New President invites local media

On November 20th 2013 the New President of the Cabildo de Tenerife (Island Government) invited the international speaking media and inward investment companies to an open meeting in Santa Cruz.

President Carlos Alonso welcomed all, then gave a brief summary of his first two months in office and the challenges to be tackled head on. He openly invited questions from the attendees without knowing what was going to be fired at him, a clear demonstration of the transparency in which he likes to lead and in an attempt to build stronger bridges with the international media.

The Cabildo’s success in reducing its debt was highlighted, one of the few public institutions in Spain to do so. This has resulted in the early implementation of the Cabildo’s investment plans and projects. The total debt reduction, €110 million in 2013 & an estimated €50 million in 2014 is proof that Tenerife’s economy is well on the way to recovery, in a time when many regions of Spain have increased their debts. Clearly the President’s Economic background will keep Tenerife on the right track.

Some of the projects we can expect to receive funding, are the long awaited Hospital at El Mojon which will open by October 2014 providing Outpatients, specialities like mental health, radiology, emergencies, rehabilitation and traumatology for example. Work at El Mojón starts this month “December 2013”.

Additionaly the Puerto de la Cruz improvement plans, for a new marina and maritime park scheme, will receive financial assistance in support of the private developer. Before the end of 2013 the project will be presented, and the concession awarded at the beginning of 2014.

News that Tenerife is included in the European Transport Network which has funds for sea and air transport plus funding for the north-south train project was well received. This will assist Tenerife to be a feeder port for non-EU goods into the EU, which is expected to generate significant commercial opportunities and employment through the Free Trade Zones.

Following on from this it was stated that 7 out of 10 cruise visitors return to Tenerife, placing specialised tourism high on the Cabildo’s agenda. The Cabildo are working with the Port Authority and town hall to improve the inland infrastructure in Santa Cruz extending the area from the ocean to the lake in Plaza de España., With exciting projects for a yacht marina, hotel, shopping centre and a new tunnel for port traffic, in this zone.

Of course there couldn’t have been a meeting without the subject of All inclusive hotels being raised.

A question was fired at the New President regarding the closures of bars restaurants causing other businesses that survive off this trade to struggle as a direct result of AI’s. When asked if Mr Alonso was happy with the balance between AI’s and other accommodation options He responded, “I won’t make responses based on what I think… I observe the facts to form my opinion and to see if we do in fact have balance. The facts tell us that 13% of total British visitors decide to select an all-inclusive option, they do this based in their own country and via the tour operator they finally decide to book their holiday with. The Tour operators offer this product in Tenerife because of customer demand, and Tenerife offers selection and diversity in order to ensure we welcome all tourists regardless of their preference”.

Finally the conversation turned to Tenerife’s strategic vision positioning itself as the “Service Centre Capital of Europe”.

“Why Tenerife” the initiative set in motion by the New President whilst He was the Vice President, is catching the attention of a completely different type of visitor.

SME’s, Business owners, and International companies looking for a European headquarters are opting for Tenerife due to the unique fiscal advantages.

With sales Tax (VAT) at a low rate of 7% and Corporation tax being just 4% it’s easy to see why business people are opting to combine the fiscal advantages with the incredible lifestyle option the Canaries has to offer.

Tenerife is continually investing in its commercial infrastructure, with the brand new super computer operational in the Data Centre “D-Alix” Granadilla, and daily air connections with European cities for economic promotion and to attract investment. Supported tactically by Inward Investment Specialists like Capital Investment Canaries (Official contracted partners of the ZEC Consortium) we are seeing a realisation of this vision.

Todate these incentives, combined with the lifestyle and constant climate, has attracted a number of Hollywood productions, global IT giants Atos and 600 other international companies in the past few years. With the raising of taxes globally this trend is only expected to increase as the closure of fiscal paradises will cause business owners and investors to look for transparent onshore options like the Canaries.

Cabildo web:


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.


London Tel: +44 207 129 7086

Spain Tel: +34 910 085 807

6 views0 comments


bottom of page