Tenerife has a different Economic
and Fiscal Regime (REF),  created to boost investment and trade on the island.

ICTs and Digital Economy

Digital economy and information and communication technologies play an increasingly crucial role in the promotion and development of economy and society. Today, they account for 4.8% of the European economy, generating nearly a quarter of total R&D expenditure, with investment in the sector representing almost half of the continent’s productivity growth.

 

The digitisation of all economic areas generates new opportunities, but neither these nor their effects will be evenly distributed in the future. This sector is therefore key for Tenerife and the Canary Islands, both in itself and because of its cross-sectional nature and the impact it has on improving local competitiveness.

Subsectors/Activities

  • Digital production
  • E-commerce and digital marketing
  • Software and application development
  • eSports: High performance centres, training, events

Creative and cultural industries

The Canary Islands, and especially Tenerife, are becoming well-established as a priority destination for making national and international films, series, documentaries, and advertisements, transforming the audiovisual industry into a strategic sector for the island’s economic development and economic diversification.
The new trends in the audiovisual and interactive entertainment industry (virtual and augmented reality, eSports, gamification in business contexts, cloud-based and multiplayer games, portability to mobile platforms, etc.) also promise great additional investment opportunities.

Subsectors/Activities

Audiovisual production: Film, animation, and video game development
  • Film - Large-scale productions and support services
  • Audiovisual projects: Real image and animation
  • Medium-scale and recurring productions (e.g. advertising)
  • Video game development and creative companies

Marine – maritime sector / Blue economy

The marine-maritime sector accounts for 7% of direct activity in the Canary Islands, 7.4% of GDP, and 6.1% of GVA, with more than 45,000 workers related to it. Canarian ports’ geostrategic positioning and their maturity level represent a great opportunity for further development of the activity in the field.

Subsectors/Activities

  • Logistics/Maritime transport: Transit logistics hub
  • Naval repair
  • Oil & Gas
  • Offshore
  • Cold stacking
  • Bunkering and provisioning

Tourism

Tourism has traditionally been a major source of income and a key factor in Tenerife's economic growth, with a significant contribution to the island's GDP. Despite the strong development of the island's tourism sector and the need to diversify economic activity, there are still clear areas of growth from the investment and production activity attraction standpoint, mainly in specific verticals (health and welfare, tourism-related ICTs, sustainable tourism, tourism intelligence, scientific tourism, sport, etc.), in areas related to other subsectors (talent attraction -digital nomads, High Net Worth Individuals, business events, training, etc.) and in the auxiliary chain (airlines, accommodation, etc.).

Subsectors/Activities

  • Airlines and cruises
  • Tourism-related ICTs
  • Health and wellness
  • Sustainable tourism
  • High Net Worth Individuals

Renewable Energies, Cleantech, and waste management

As European countries move forward in developing their energy diversification plans, and in the midst of a context of clear energy transformation and transition towards the use of renewable energy sources to the detriment of fossil fuels, the European Commission estimates the investment in renewables needed to achieve the objectives of agreements such as those of Paris at around 180 billion euros per year.
The reduction in the cost of green energy generation thanks to technological advances is not only accelerating the process, but also changing the trend and behaviour of the markets, even making previously reluctant countries such as China become the leaders of the change.

Subsectors/Activities

  • Generation: Offshore/Marine Wind, Solar
  • Self-consumption
  • Surplus storage
  • Waste and recycling
  • Electric mobility (rental fleets)

BPO and Professional Services

Some of the changes in companies' investment placement policies may have significant implications for FDI. Global Value Chains are changing their structure in recent years, due to factors such as rising wages and costs in emerging markets, internal devaluations in many industrialised countries, increasing production process automation, increased political risk, etc. Within this reorganisation, reshoring -the return of productive activities to their countries of origin that companies had relocated in the past- or nearshoring -production in the vicinity of consumption centres to meet changes in demand patterns with greater flexibility and speed- strongly stand out. In the last decade, Spain has significantly increased its attractiveness as a destination for multinational companies that wish to cover services (internally or to their customers) at European level from a community framework.

Subsectors/Activities

  • Support centres (national/international)
  • Call-centers
  • Back Office