Astrophysics & Blue Economy - Canary Islands Hub

Canarias is poised to become the operational epicenter of Europe in the Aerospace and Aeronautics sector

In the Canary Islands, there is a robust drive for the development and collaboration among companies and organizations in the aerospace and aeronautical field, covering their technological, business, and strategic aspects. Consequently, companies from around the world are seeking to establish a presence in the Islands to undertake projects related to drones, satellites, and energy generation.

The aerospace and aeronautical sector is undergoing significant transformations at a rapid pace. The launch of satellites into Earth's orbit is becoming more frequent and widespread, and in this dynamic race, Canarias stands out as a territory with a historic connection to space, supported by the 60 years of the NASA station's presence in Maspalomas, Gran Canaria.

Moreover, Canarias boasts technological parks that catalyze the development of this sector, in conjunction with research centers such as the Institute of Astrophysics of Canarias. The Canary Islands host some of the largest and most powerful telescopes in the world, and scientists from around the globe are carrying out pioneering projects in oceanic research.

The inherent aerospace capabilities of Canarias, derived from its geostrategic position and unique natural environment, consolidate the islands as an ideal location for the present and future of the space sector at both the national and international levels. In addition to these exceptional conditions, advanced infrastructure, technology, and highly trained scientists, the Canary Islands also boast Europe's most generous tax regime, with a 4% corporate tax rate and only 7% VAT. They also have the world's best tax breaks for research and development (R&D), such as Technology Innovation activities, resulting in an annual 45% cost reduction. As an outermost region of the EU, the Canary Islands have their own Economic and Tax System (REF), fully approved by the EU, which applies double taxation conventions and ensures fiscal transparency.

Key highlights:

Pleasant climate throughout the year and the presence of aquatic surfaces.
The meteorological, orographic, and oceanic conditions of the archipelago are unique in Europe.
The Canary Islands Special Zone (ZEC), designed for establishing companies in Canarias, offers a reduced 4% corporate tax rate.
7% VAT (IGIC), a much more advantageous tax than that applied in the rest of Spain (21%).
Deduction in R&D: up to 45% in Corporate Income Tax.