Main taxes and characteristics of the Canary Islands
Abstract:As an autonomous region of Spain, the Canary Islands enjoy a special economic status, and its tax system is different from that of mainland Spain. It is mainly to promote local economic development, protect local industries, and attract tourists.
Canary Islands Indirect General Tax (IGIC)
Equivalent to the Value Added Tax (IVA) in mainland Spain: IGIC is a local tax
in the Canary Islands, and its function is similar to the VAT in mainland Spain. It is a tax
levied on the value added of goods and services.
Tax rate difference: The tax rate of IGIC may be different from that of IVA,
and the specific tax rate will depend on the type and use of the goods.
Scope of application: IGIC applies to goods and services sold in the Canary Islands.
Tariffs
Duty-free zone benefits: As a duty-free zone in the European Union, the Canary
Islands have low import tariffs on many goods, or even no tariffs.
High tariffs on specific goods: In order to protect local industries, the
Canary Islands may impose higher tariffs on some specific goods, such as agricultural products
and industrial products.
Circulation within the EU: The tariff policy for goods circulated within the EU will be different.
Consumption tax
Consumption tax on certain goods: Additional consumption tax may be levied on
certain consumer goods, such as tobacco, alcoholic beverages, etc.
Tax rate adjustment: The consumption tax rate may change according to the government's policy adjustment.