Tax advantages of coliving in Fuerteventura

Tax advantages of coliving in Fuerteventura

Fuerteventura has become a key destination for those who want to come to work in the Canary Islands, whether self-employed or employed.

The island is equipped with different workspaces and accommodations with different atmospheres and all tastes.

You can choose to share or have a single room.

In addition to the climate, working environment, infrastructure, quality of life, you may be interested in the tax advantages of working in Fuerteventura.

Fuerteventura has a special economic and fiscal regime; the Canary Islands special Canary Islands Special Zone (ZEC) offers companies that meet certain requirements in the Canary Islands, taxed at 4%.

The general indirect tax in the Canary Islands is 7% under the general regime, which means a lower tax burden than in other regions of Europe.

Indirect taxation and cohousing

Indirect taxation is the first issue that an individual interested in coliving in Fuerteventura has to face.

In the Canary Islands VAT is not collected but the Canary Islands General Indirect Tax (IGIC), with tax rates lower than those existing in the rest of Spain.

As there are no special taxes levied on the acquisition of rights over dwellings, we focus on the IGIC, exclusively on the acquisition of rights that grant the possibility of use of housing in cohousing communities and not so much on the particularities of this tax in other usual operations.

The general rate for deliveries of dwellings and rights over dwellings is 7%but a 3% in the case of construction work or delivery of subsidized housing under the general regime, or construction work resulting from contracts directly entered into between the developer-builder and the contractor, whose purpose is the self-construction of housing administratively classified as subsidized housing.

There is also a rate of 2.75% for the delivery of low-cost housing; and even the tax rate will be 0% in certain cases of special public protection.

Income obtained in Spain by Non-Residents

Income and yields, depending on the type of income obtained, are as follows:

  1. Income derived from economic activities.
    • Income from economic activities or operations carried out through a permanent establishment located in Spanish territory.
    • Income from economic activities or operations, obtained without the intermediation of a permanent establishment when:
      • Are carried out in Spanish territory, except for income derived from the installation or assembly of machinery or installations from abroad when such operations are carried out by the supplier and their amount does not exceed 20% of the acquisition price. Notwithstanding the foregoing, income obtained in Spanish territory will not be considered to be income paid for international sales and purchases of goods, including ancillary expenses and mediation commissions.
      • The services used in Spanish territory. When such rendering of services partially serves economic activities carried out in Spanish territory, they will be considered as obtained in Spain only for the part that serves the activity carried out in Spain.
      • Derived from the personal performance in Spanish territory of artists and sportsmen and sportswomen, even when they are received by a different person or entity.
  2. Income from work.
    • In general, when they derive from work performed in Spanish territory (territoriality criterion).
    • Payment criteria:
      • Public remuneration paid by the Spanish government. This criterion will not apply when the work is performed entirely abroad and such income is subject to a personal tax abroad.
      • Remuneration of employees of ships and aircraft in international traffic paid by resident entrepreneurs or entities or by permanent establishments located in Spanish territory. This criterion will not apply when the work is performed entirely abroad and such income is subject to a personal tax abroad.
  3. Pensions and other similar benefits.
    • When they derive from employment in Spanish territory.
    • When they are paid by a person or entity resident in Spanish territory or by a permanent establishment located therein (payment criterion).
  4. Remuneration of directors and members of the Boards of Directors, of the Boards that act in their stead or of representative bodies, when paid by an entity resident in Spanish territory (payment criterion).
  5. Income from movable capital.
    • Dividends and other income derived from the participation in the equity of entities resident in Spain.
    • Interest and other income obtained from the transfer to third parties of own capital paid by persons or entities resident in Spanish territory or by permanent establishments located therein or that remunerate capital services used in Spanish territory.
    • Royalties paid by persons or entities resident in Spanish territory, or by permanent establishments located therein, or which are used in Spanish territory.
    • Other income from movable capital not mentioned in the previous sections paid by individuals who carry out economic activities, in the exercise of their activities, or entities resident in Spanish territory or by permanent establishments located therein.
  6. Income from real estate capital:Income derived, directly or indirectly, from real estate located in Spanish territory or from rights relating thereto (territoriality criterion).
  7. Income imputed to taxpayers who are individuals owning urban real estate not used for economic activities.properties located in Spanish territory (territoriality criterion).
  8. Capital gains.
    • When they derive from securities issued by resident persons or entities.
    • When they derive from other movable assets located in Spanish territory.
    • When they come from real estate located in Spanish territory.
    • When assets located in Spanish territory or rights to be performed or exercised in Spanish territory are incorporated into the taxpayer’s assets, even if they do not derive from a prior transfer, such as gambling winnings.

Exceptions applicable to any type of incomeIncome paid to non-resident individuals or entities by permanent establishments located abroad, charged to them, is not considered to be obtained in Spanish territory when the corresponding benefits are directly linked to the activity of the permanent establishment abroad.

Startup Law, support for the creation and growth of companies in Fuerteventura.

The measures established by the Startups Law, such as the reduction of the time and costs required to create a company, the improvement of tax conditions for startups, the exemption of pluriactivity and the tax exemption of the stock options, can have a positive impact on attracting and retaining talent in the Canary Islands and promoting entrepreneurship.

The Startups Law establishes specific criteria for defining

what is considered a startup

  • no more than 5 years have elapsed since the date of registration in the Commercial Registry (7 years for biotechnology, energy, industrial companies or companies in sectors that develop their own technology in Spain),
  • not arise as a result of a merger, spin-off or transformation of non-emerging companies,
  • not listed on the regulated market,
  • not having distributed dividends or returns,
  • have a permanent registered office in Spain,
  • have at least 60% of the workforce with employment contracts in Spain,
  • to carry out an innovative entrepreneurship project with a scalable business model.

Legislative improvements for the development of startups in Fuerteventura

  • Time to open a company: reduced from 10-15 days to as little as 6 hours.
  • Multi-activity exemption: extended from 0 years to 3 years.
  • Non-Resident Income Tax (IRNR): reduced from 25% to 15%.
  • Cost of setting up a limited liability company (SL): reduced from 3,000 euros to 1 euro.
  • Tax exemption for stock options: increased from 12,000 euros to 50,000 euros and delayed attribution when they become liquid.

Digital nomads in Fuerteventura

Conomad Fuerteventura is the company specialized in Coliving in Fuerteventura, with workspaces and accommodations for digital nomads.

For coliving, we offer fully equipped apartments that guarantee your comfort throughout your stay, from studios overlooking the sea to quiet apartments that will facilitate your rest so you can renew your energy after a day of work and start a new day revitalized.

If you need coworking to work in a team, you can use the private offices, which can accommodate up to 4 people.

There are also materials and equipment to work with: projectors, printers, internet and mobile cables,…

conomad fuerteventura

 

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Esta información está disponible en / Post available in: Español (Spanish)

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