What IGIC is
The Canaries are inside the EU customs union but outside the EU VAT system. Instead there is IGIC (Impuesto General Indirecto Canario), which taxes sales and services on the islands and every import of goods, whoever the importer is – a business or a private individual. That includes goods arriving from mainland Spain.
Current IGIC rates
- 0%: essentials such as water, bread, milk, cheese, eggs, fresh fruit and vegetables, medicines for human use, books and newspapers.
- 3%: products of certain industrial sectors, such as textiles.
- 5%: soft drinks with added sugar or sweeteners.
- 7%: standard rate for everything else.
- 9.5%: some vehicles, boats and aircraft.
- 15%: spirits, jewellery, perfume and cigars over €2.50 each.
- 20%: tobacco products other than cigars and cigarillos.
Vehicles follow their own rules – electric cars, for instance, are taxed at 0%.
How import IGIC is calculated
The base is the customs value (generally the price plus freight and insurance to the Canaries), plus customs duty and other import charges, plus costs up to the first destination on the islands. AIEM is not included.
Simplified example: goods from China with a customs value of €10,000, 4% duty (€400) and €300 for unloading and transport to your warehouse. IGIC base: €10,700; at 7% that is €749 of IGIC.
Who pays and whether you can reclaim it
The importer pays it at clearance. Businesses in the general scheme can usually deduct import IGIC; if you trade under the special retail scheme, a surcharge applies instead (e.g. 0.7% on goods at 7%) and nothing is deductible. For private individuals it is a final cost. Exemptions include consignments up to €150 (except alcohol, perfume and tobacco) and personal belongings when moving house – see exemptions and reliefs.
How we handle it
- Enquiry on WhatsApp or by phone with the invoice and product description.
- Classification: we set the IGIC rate and check for AIEM and any exemptions.
- Transport: if needed, we coordinate shipping to Tenerife.
- Declaration: we file the import, IGIC is assessed and we tell you the amount.
- Delivery: once paid and released, the goods go to your address.
FAQ: IGIC on imports
Is IGIC the same as VAT?
It does the same job, but it is a Canarian tax with its own rates and rules, run by the Canary Islands Tax Agency. The standard rate is 7%.
Do I pay IGIC on goods from mainland Spain?
Yes. It is due on arrival in the Canaries, and the mainland supplier generally invoices without Spanish VAT.
Is AIEM added to the IGIC base?
No. The law expressly excludes AIEM from the taxable amount for import IGIC. Customs duties, on the other hand, are included.