Grants, Tax Benefits and Special Regimes for Freelancers in the Canary Islands (2025 Update)

1. Flat Rate and Reduced Social Security Contribution

Every new freelancer in the Canary Islands starts with a reduced social security fee.

Thanks to the national “flat rate”, the first months cost as little as €80/month, and there are additional discounts for:

• Freelancers under 30 years old

• Female entrepreneurs

• People with disabilities

In the Canary Islands, there’s also an extra benefit: the Zero Fee Grant (Cuota Cero) — a subsidy that reimburses your monthly contributions after payment, effectively reducing your real costs during the first year.

2. Special Regime for Small Entrepreneurs and Professionals (REPEP) — Annual Turnover up to €30,000 and IGIC Exemption

The REPEP is a local tax regime for freelancers and professionals with low annual income.

If your yearly turnover does not exceed €30,000, you can apply for this regime and enjoy:

• IGIC exemption (no need to charge IGIC on your invoices)

• Simplified reporting — often only one annual tax form

• Reduced administrative burden

This regime allows you to operate legally while your business grows, taking advantage of a simplified fiscal framework unique to the Canary Islands.

3. “Zero Fee” Grant for Freelancers in the Canary Islands

The “Cuota Cero” (Zero Fee) subsidy allows new freelancers who meet certain conditions to get back their paid monthly contributions during the first year.

Eligible freelancers must:

• Have registered from 2023 onwards

• Be benefiting from the flat rate

• Be officially resident in the Canary Islands

At TaxGo Canarias, we check your eligibility, prepare your application, and track your request until final approval — saving you time and money.

4. Island-Specific and Targeted Grants (Women, Youth, Entrepreneurs)

Each island — such as Lanzarote, Fuerteventura, La Palma, and others — offers local grant programs.

There are also specific initiatives for:

• Female entrepreneurs

• Young professionals (under 30–35 years old)

• People with disabilities

These programs may include reduced contributions, funding for digitalization, business investments, or support for new ventures.

Our specialized knowledge ensures you apply to the right programs according to your island and business profile.

5. Tax Deductions and the Canary Islands Economic and Fiscal Regime (REF)

Beyond temporary aid, the Canary Islands offer an exclusive fiscal framework called the REF (Régimen Económico y Fiscal de Canarias).

It includes:

• Reduced IGIC (7%) compared to Spain’s 21% VAT

• Investment incentives

• Tax deductions for reinvestment and job creation

Taking full advantage of these benefits requires professional guidance.

At TaxGo Canarias, we combine tax optimization with grant management to ensure you pay less — legally and without complications.

6. How We Help You as a Specialized Tax Advisory

At TaxGo Canarias, we guide you through every step:

• Registering as a freelancer

• Applying for the flat rate and “Zero Fee” grant

• Accessing the REPEP if you earn under €30,000

• Managing local or island-specific grants

• Optimizing your taxes under the REF system

👉 Contact us today to start saving right away.

We’ll handle all your tax obligations as a freelancer in the Canary Islands — so you can focus on your business while we manage your taxes.

Start Simplifying Your Freelance Life Today

You’re not alone — contact us and we’ll get back to you as soon as possible.

Prefer a call? Let us know, and we’ll contact you directly.