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Tarla <> writes:

> NZed wrote:
>> What if you lived in the Canary Islands ?
>> Taxed ?
>
> I have no idea. I thought the Canary Islands were a part of Spain.

They're a special economic zone, so no duty on imports, and no
VAT. Companies in certain industries (including IT) get their company
tax reduced to 1% - 5% (standard rate in Spain is 35%), as long as at
least one director is resident and there are at least 5 employees. It
is therefore a common tax haven for shell companies set up to launder
IT contractors' earnings.

<jasonr (Jason Rumney) @ f2s.com> wrote in message
> Tarla <> writes:

> They're a special economic zone, so no duty on imports, and no
> VAT. Companies in certain industries (including IT) get their company
> tax reduced to 1% - 5% (standard rate in Spain is 35%), as long as at
> least one director is resident and there are at least 5 employees. It
> is therefore a common tax haven for shell companies set up to launder
> IT contractors' earnings.

Launder? Isn't it all above board and legal. Tax avoidance as opposed to tax
evasion?

PAM.

"PAM." <> writes:

> <jasonr (Jason Rumney) @ f2s.com> wrote in message
>> Tarla <> writes:
>
>> They're a special economic zone, so no duty on imports, and no
>> VAT. Companies in certain industries (including IT) get their company
>> tax reduced to 1% - 5% (standard rate in Spain is 35%), as long as at
>> least one director is resident and there are at least 5 employees. It
>> is therefore a common tax haven for shell companies set up to launder
>> IT contractors' earnings.
>
> Launder? Isn't it all above board and legal. Tax avoidance as opposed to tax
> evasion?

Its above board and legal if the money stays in the Canary Islands.