This week, over 50 influencers and content creators gathered in the autonomous city of Ceuta to learn more about its significant tax benefits. Known for its cultural diversity, sunny climate, and warm residents, it has become an attractive destination for those looking to reduce their tax burden.
The event, organised by Ceuta’s Department of Economy and Finance, aimed to showcase the city’s unique fiscal advantages, drawing the attention of social media stars and entrepreneurs.
Lower taxes, big appeal
Among the attendees were notable figures such as Francisco Nicolás, also known as “El Pequeño Nicolás,” and YouTuber Widl3r Soldier, who currently resides in Andorra. The majority of the invitees were tipsters (sports betting experts) and communication agents, all considering relocating their personal or business tax base to Ceuta to save money.
The event featured an array of activities, including helicopter rides, catamaran tours, and exclusive private parties. A keynote speech by consulting firm EY detailed Ceuta’s tax benefits, explaining how businesses and residents can benefit from significantly lower tax rates compared to other regions in Spain.
Corporate tax and income tax breaks
One of the key draws for businesses is Ceuta’s 50% reduction in Corporate Tax. While companies across Spain generally pay 25% tax on profits, those operating in Ceuta can see this rate halved to 12.5%, provided they meet certain conditions. These include having a “complete business circle” in Ceuta, meaning companies must have physical operations, staff, and generate income within the city.
Additionally, individuals residing in Ceuta benefit from a 60% reduction in Personal Income Tax (IRPF). While the maximum rate on the mainland can reach up to 47%, in Ceuta it hovers around 17-18%. To qualify, residents must live in Ceuta for at least 183 days per year, with proof of residence required.
No wealth tax and lower local taxes
In Ceuta, the Wealth Tax is reduced by 75%, and residents are exempt from paying Spain’s Solidarity Tax on large fortunes. Moreover, the city’s local tax regime is highly favourable, with all local taxes, including property and vehicle registration taxes, cut by 50%.
Ceuta also does not apply Spain’s national VAT, replacing it with its local tax, the IPSI, which ranges from 0.5% to a maximum of 10%, compared to Spain’s standard VAT of 21%.
Also read: EU responds to Morocco’s alleged desire to ‘retake’ Ceuta and Melilla