Law 19/1994, from July 6, modifying the economic and fiscal regime of the Canary Islands contains a set of economic measures - the so-called economic REF - intended to directly compensate for remoteness and insularity. The measures currently included in the Law refer to the following areas: transport and telecommunications; energy and water; commercial promotion; tourism promotion and rehabilitation; employment creation; investment incentives and professional training. The REF includes the following tax incentives and peculiarities:


Law 27/1992, from November 24, on State Ports and the Merchant Marine, in its 15th additional provision, established a Special Register of Ships and Shipping Companies located in Canarian territory.

In order to be able to register in it, shipping companies must have in the Canary Islands the effective control center for the exploitation of ships in addition to meeting other requirements such as being destined for foreign or extranational navigation.

The companies registered in this Registry enjoy the following tax benefits:

» 90% discount on the quota (after deductions for double taxation) that corresponds to the taxable base from operation of vessels registered in the Registry (their transmission is not included).

» Exemption from the Tax on Patrimonial Transmissions and Documented Legal Acts for acts and contracts carried out by vessels registered in the Registry.

» Exemption for crew members in Personal Income Tax or Non-Resident Income Tax of 50% of the full income from personal work accrued by navigation on said ships.