Why companies in West Africa should establish in Canary Islands?
The Canaries form an archipelago made up by seven main islands, located in the Atlantic Ocean near the Tropic of Cancer, near the African coast of Western Sahara. The Canary Islands are an integral part of Spain what it means, are also part of the European Union and their currency is the Euro.
The islands enjoy some exceptions in the fiscal and economic area. Companies operating there are also eligible for special tax incentives:
● Special Tax Regime or REF
● 4% fixed Corporation tax rate for ZEC companies
● Reduction up to 90% of non-distributed net profit from taxable base(RIC)
● 50%tax rebate for production of tangible assets
● Tax credits for investments in strategic sectors that are profitable compared to the rest of the Spanish territory.
The Canary Islands has a strategic world map position, due to they are located between America, Africa and Europe, what it means is a gateway for the African market and, where the investors can also manage their European business.
The Canary Islands are just one step away of West Africa, 60 miles of distance and an average estimated flight of 1hr 15 minutes of distance. The closest city is Layooune (45 minutes flight) and the further Banjul and Sal (2hrs 35min).
The Canary Island has a great air and maritime connectivity. There are 46 weekly flights to Africa, 460 to the United Kingdom and 350 to Germany. Also there is sea links to all the main international ports in the Area.
About telecommunications, the island is at forefront and the best quality to guarantee global connectivity for International Activities. D-ALIX, neutral internet exchange point linked to Africa.
Currently, the Canary Islands are a preferred destination for West African residents due to their first-class health services (28 hospitals and 103 health centers), excellent educational infrastructure (4 Universities, 39 International schools, 196 private schools, etc.), and wide cultural, commercial and leisure options that goes from shopping malls, golf courses, hotels, cinema, theatre, festivals, etc.
Most people relation the Canary Island as a touristic spot for the summer holiday, however, is a growing island with a Cosmopolitan, modern and lively atmosphere that results in a better quality of life in comparison to big financial cities.
The weather is another factor to considerate the Canary Island. With an average annual temperature of 71ºF/22ºC and 4,800 Natural lights hour per year, make of the Island an ideal place to live.
Don´t forget that Africa has six of the world’s ten fastest growing economies in the world: Ghana (8.3%), Ethiopia (8.2%), Côte d’Ivoire (7.2%), Djibouti (7%), Senegal (6.9%) and Tanzania (6.8%). With these potential economies and a Casa Africa located in the Canary Islands make the strategic point to set your business.
For all these reasons, we recommend to European and West Africa companies to set their base in the Canary Islands. By doing so, they will enjoy all the benefits we mentioned above.
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.
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