Scope

Regulation: Articles 30, 31 and 41 Law 19/1994

1. The geographic scope of the ZEC will extend to the entire territory of the Canary Islands.

2. As regards the subjective scope of application , legal entities and newly created branches that are registered in the Official Registry of Entities of the Canary Islands Special Zone and meet the requirements listed in article 31.2 of Law 19/1994 may benefit from the ZEC regime:

   1. That they have their registered office and effective management headquarters within the geographic area of the ZEC.

   2. That at least one administrator or, in the case of branches, one legal representative resides in the Canary Islands.

   3. Its to carry out economic activities included in the annex of Law 19/1994 within the geographic area of the ZEC. Likewise, through a separate branch, they may carry out other activities to which the benefits of the ZEC will not apply, in which case they must keep separate accounts.

   4. Make investments in the first two years from its registration , that materialize in the acquisition of tangible or intangible fixed assets, located or received in the geographic area of the ZEC, used in it, affected by and necessary for the development of the economic activities carried out by the taxpayer in said geographic area, fulfilling the conditions and for the minimum amount indicated in article 31 of Law 19/1994.

   5. The creation of jobs in the geographic area of the ZEC within six months of its registration and the maintenance of at least that number of the average annual workforce during the period of enjoyment of this regime, with a legally established minimum.

   6. Submit a descriptive report of the main economic activities to be developed, which guarantees its solvency, viability, international competitiveness and its contribution to the economic and social development of the Canary Islands, the content of which will be binding for the entity, unless these activities are varied with the express authorization of the Governing Council.

3. Regarding the procedure for registration of an entity in the Official Registry of Entities of the ZEC, article 41 of Law 19/1994 establishes that said registration is conditional on the prior authorization of the ZEC Consortium.

   For these purposes, a application must be submitted, accompanied by a descriptive report of the main economic activities referred to in letter f) of article 31.2 of Law 19/1994. Along with this application, a deposit or guarantee must be provided in the amount of the registration fee regulated in article 50 of Law 19/1994.

   In view of the documentation provided, the Governing Council will proceed with the authorization, subject to a favorable report from the Technical Commission.

   The authorization by the Governing Council must be granted, expressly, within a period of 2 months, counting from the date of receipt of the application by the ZEC Consortium. After this period has elapsed without an express resolution, the request for authorization will be deemed to have been rejected.

   Once the authorization has been obtained, the applicant must provide the Official Registry of Entities of the ZEC with the proving the constitution of the entity in accordance with the Law.

   Registration must be completed within a period of days, counting from the day on which the documents referred to the previous paragraph are submitted.