Tax Incentives

The Canary Islands enjoy a specific tax regime due to their geographical distance from the rest of Spain. To promote the economic and social development of the archipelago, the islands offer a series of attractive tax advantages that are successfully applied to audiovisual production.

The approval of the new Canary Islands Economic and Tax Regime (REF) (1), which came into effect on January 1, 2015, enhances the tax advantages for audiovisual productions carried out in the Archipelago. This circumstance consolidates Tenerife as one of the best places in Europe to host film shoots, as it combines these economic benefits with its climate, natural conditions, diverse landscapes, and a solid audiovisual sector with qualified and experienced teams and professionals to meet any need.

The Canarian REF increases by 20 percentage points the deductions of the Corporate Tax Law (2) for audiovisual productions and the limits by 80%. Therefore, in the Canary Islands, the incentive for foreign and Spanish productions increases from a 30-25% deduction to a 50%-45% deduction and in some cases rises to a 54% deduction on the first million euros. Both incentives have a limit of 36 million euros in refunds for feature films and 18 million euros per episode for series.

Additionally, audiovisual works, except advertising, carried out through production services can opt for 0% IGIC and no VAT.

1) Law 20/1991, of June 7, amending the tax aspects of the Canary Islands Economic and Tax Regime (Article 94), and Law 19/1994, of July 6, amending the Canary Islands Economic and Tax Regime (14th Additional Provision) (consolidated texts).

2) Law 27/2014, of November 27, on Corporate Tax (consolidated text).

• 4% Corporate Tax (ZEC Entities)
• Up to 54% deduction for foreign productions (tax rebate)
• Up to 54% deduction for investment in Spanish productions or co-productions (tax credit)
• The reserve for investments in the Canary Islands
• 0% IGIC (Canary Islands General Indirect Tax)

Some of our technical partners:

• System Grip
• Aluzine
• Brother´s Films
• RC Service
• Alucine
• Sercivi