Canary Islands’ Unique Tax Status Goes Global
The distinctive Economic and Fiscal Regime (REF) of the Canary Islands is set to be promoted to business communities worldwide, with specific campaigns targeting chambers of commerce in Romania, commercial delegations in Thailand, and entrepreneurs in Argentina. This international push was confirmed by the diplomatic representatives of these countries based in the islands, who were among the consuls attending the first informational conference on the Canarian regime. The event, held on Wednesday, September 24, was organized by the External Action Department of the Tenerife Island Council (Cabildo de Tenerife).
Diplomatic Interest in Island Advantages
The conference, held at the Hotel Botánico in Puerto de la Cruz, featured the Commissioner for the REF, José Ramón Barrera, as the keynote speaker. Diplomatic representatives from over thirty countries across Europe, Asia, and Latin America listened attentively as the commissioner emphasised the importance of using such forums to project the archipelago onto the global stage. “It is essential to open the world’s doors to the REF and attract investments that generate employment and boost our economy,” Barrera stated during his presentation.
Historical Roots and Legal Solidarity
Commissioner Barrera outlined the historical origins of the Canary Islands’ fiscal singularities, which date back to before the discovery of the Americas. “More than five centuries ago, we were granted a special status in perpetuity because our disadvantages are structural; they will always be there,” he explained. He also detailed the main economic compensations and tax incentives that form part of the current regime, stressing its robust legal foundation. This special status is recognised in the Canary Islands Statute of Autonomy, the Spanish Constitution, and the Treaty on the Functioning of the European Union.
Hollywood Success: A Case Study
As a prime example of the REF’s success, Barrera pointed to the audiovisual sector. He highlighted the crucial role played by the Canary Islands’ tax differential in creating what is now a “very well-established industry.” “We have magnificent locations for filming, but it was our tax differential that began to attract Hollywood blockbusters. The first major film was ‘Jason Bourne 5,’ and many more followed,” the commissioner noted, showcasing how the regime has turned the islands into an international filming destination.
Official Welcome
The event was opened by the Director of External Action and Institutional Relations of the Tenerife Council, Pedro González Delgado. He was joined in welcoming attendees by the Mayor of Puerto de la Cruz, Leopoldo Afonso Hernández, and the Dean of the Consular Corps of the province of Santa Cruz de Tenerife and Honorary Consul of the Netherlands, Stan Weytjens.
