The Canary Islands Special Tax Zone (Corporate Tax reduction)


Type of incentiveTax Rebate
Qualifying formats
  • - Feature film - fiction (theatrical)
  • - Feature film - documentary (theatrical)
  • - TV Film or TV series - fiction
  • - TV Film or TV series - documentary
  • - Post production/special effects for film & tv (fiction)
  • - Post production/special effects for film & tv (non-fiction)
Qualifying productions
  • - National productions
  • - Foreign productions
  • - Co-productions


Benefit as a % of spend50.00
Financial cap per production4500000
Do I have to register/set up a company?Yes
Does foreign cast/crew paid in their home country/region qualify as expenditure? No
Do foreign cast/crew have to pay tax in the host country/state/region? Yes
Does travel to/from country/region qualify as expenditure? Yes
Can a production qualify for other national incentives such as cultural programmes if it qualifies for this incentive? No
Criteria to access the benefit
  • - Minimum percentage of the film that must be shot in the region: 0.00%
When will the benefit/incentive be received?
  • - On submission of audited accounts
Additional incentives or advantages
  • - VAT / GST /Sales Tax recoverable
  • - The 50% incentive is applied to the first million euros and 45% from then on. The incentive is capped at EUR18 million. Eligible expenditure on the Canary Islands will be at least EUR1 million for animation and postproduction. The total cost of production must be at least EUR2 million and eligible expenditue cannot exceed 80% of the total cost of the production and the deduction with other subsidies for the same production cannot be above 50% of the production cost.