Taxes in Gran Canaria

So you are you considering setting up a business in Gran Canaria. Well, this magnificent town has excellent weather, smooth roads, internet access and an ideal location in Europe. All these factors enable business owners to operate their ventures throughout the year. More importantly, people enjoy tax cuts. Instead of VAT, people pay an indirect tax known as Impuesto General Indirecto Canario (IGIC).

Income tax is compulsory. Everyone must pay it each month and once you complete your tax return, there will be no other charges the following year. This levy is applicable for residents only.
It is compulsory to complete your tax returns at the end of the year. The tax return should be completed before 30th June. Early applications are processed fast. For that reason, it is important to learn how to file your tax returns without becoming crazy!

There are many tax incentives available for business owners in Gran Canaria. To qualify for these incentives, you should consider:

Investing in environment-friendly assets
Helping to create additional jobs, especially for disabled persons
Establishing manufacturing or industrial facilities
Taking part in export activities
Taking part in research or innovative activities
Investing in information technology
Investing in transforming the transport system
Opening companies and offices in various places to assist in exporting goods or marketing tourism in the country
Spending on making films
Investing in marketing products and services during trade fairs and exhibitions
Taking part in cultural activities
Investing in firms that ensure proper working conditions for their employees
Invest in kids’ protection ventures
Before you buy or establish a business, you should know that this town is gradually recovering following a great recession because of the so-called property bubble.
The following are some of the sectors that are booming at the moment:
Tourism: tourist attractions, car rental firms, hotels
Second-hand shops, including cash converters
Real estate
Shops trading gold
Grocery shops
Online businesses
Computer repair
Export companies

To set up a company in Gran Canaria, it is important to seek the assistance of a professional tax consultant, accountant or labor expert. Once your business is registered, you will be given a tax number, which you need to use to unblock your bank account before commencing operations. Every staff member employed or sacked also need some procedure to be completed. Taxes in Gran Canaria must be paid after each quarter. Each limited liability firms must maintain their accounts.