While Tenerife is widely known as a holiday paradise, it’s also quietly becoming a hub for innovation, entrepreneurship, and strategic business growth. The island’s economic ecosystem is evolving, and smart entrepreneurs are seizing the opportunity.
Strategic Location
Tenerife sits at the crossroads between Europe, Africa, and the Americas. Its timezone, modern infrastructure, and reliable connectivity (including a growing fiber network) make it a natural choice for remote businesses, logistics, and service-based ventures.
The island has two international airports, daily flights to major European cities, and a seaport that handles commercial and cruise traffic alike.
Low Taxes and Incentives
Tenerife is part of Spain’s ZEC (Canary Islands Special Zone), which offers corporate tax rates of just 4% for approved businesses. Additionally, the 7% IGIC tax (vs. 21% VAT in mainland Spain) applies to most goods and services.
Other incentives include:
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EU funding for innovation and startups
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Subsidies for hiring local workers
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Residency and visa options for non-EU founders
Growing Sectors
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Tech & Remote Work: More coworking spaces and startup hubs are emerging, especially in Santa Cruz and La Laguna.
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Tourism & Wellness: Demand for boutique hotels, eco-tourism, and high-end retreats is growing fast.
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Real Estate & Construction: With increasing migration, demand for new housing and serviced apartments is on the rise.
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Education & Language Services: The expat community fuels demand for international schooling, language centers, and tutoring.
Talent & Lifestyle Advantage
Unlike other business hubs, Tenerife offers a unique bonus: quality of life. Entrepreneurs can build global companies while enjoying a low-stress environment, great food, and natural beauty. It’s easier to attract talent when your office is near the ocean.
As more professionals seek a lifestyle that blends purpose and pleasure, Tenerife is emerging as the place to build not just a business—but a life.