Spanish Government Reaffirms Commitment to Supporting Canary Islands' Business Sector

In a recent address, the Spanish government has reiterated its unwavering support for the business sector and self-employed individuals in the Canary Islands. This commitment is part of a broader strategy to promote economic growth, internationalization, and competitiveness in the region.

Government's Ongoing Support

The Minister of Economy, Trade and Enterprise, Carlos Cuerpo, along with the Secretary of State for Trade, Amparo López Senovilla, have been instrumental in strengthening economic and trade relations. The government has emphasized the importance of public-private collaboration and the role of the network of commercial and economic offices in facilitating the internationalization of Spanish companies, including those in the Canary Islands[1][4].

Incentives and Initiatives

The Canary Islands offer a unique set of incentives that make them an attractive destination for businesses. Under the Special Economic Zone (ZEC) framework, companies can benefit from a significantly lower corporate tax rate of 4%, compared to the standard rate in Spain. Additionally, the islands operate under a lower indirect tax system known as IGIC, set at 7%, which is substantially lower than Spain's 21% VAT. These fiscal advantages, combined with incentives for investment and research and development (R&D), have made the Canary Islands a hub for companies in technology, renewable energy, tourism, and digital innovation[3].

PROEXCA's Role

PROEXCA, a public company attached to the Presidency of the Government of the Canary Islands, plays a crucial role in promoting the internationalization of Canarian companies. PROEXCA's mission is to support local businesses in opening up to new markets, diversify the regional economy, strengthen the business sector, and promote employment creation. As a collaborating entity of the Enterprise Europe Network (EEN) Canarias, PROEXCA offers a range of free support and advisory services to help businesses access EU policies, programs, and funding opportunities[5].

Recent Developments

In recent months, the Spanish government has taken several steps to bolster the economy of the Canary Islands. For instance, the Ministry of Economy, Trade and Business has renewed its commitment to promoting the internationalization of the Canary Islands' economy. This includes supporting local businesses through various initiatives and ensuring they have the necessary resources to adapt to technological, sustainability, and consumer protection challenges[1].

Strategic Location and Future Growth

The Canary Islands' strategic location between Europe, Africa, and the Americas makes them an ideal springboard for companies looking to expand into international markets. The region's focus on sustainable tourism, renewable energy, and digital innovation is expected to drive future growth. The government's support, combined with the favorable tax environment and access to global markets, positions the Canary Islands as a prime location for businesses aiming to scale their operations and contribute to the regional economy[3].

In summary, the Spanish government's continued support for the business sector in the Canary Islands is a testament to its commitment to economic growth and internationalization. With a range of incentives, strategic initiatives, and the support of entities like PROEXCA, the Canary Islands are poised to remain a vibrant and attractive destination for businesses and entrepreneurs.