Is it true that sales tax are cheaper in the Canary Islands?

Yes, sales tax is cheaper in the Canary Islands than in mainland Spain. The Canary Islands, and thus Gran Canaria, have a different tax system than mainland Spain, and the equivalent to VAT in the Canary Islands is the Canary Island General Indirect Tax (IGIC). The general rate of IGIC is 7%, compared to 21% VAT in mainland Spain.

There are also some products and services that are taxed at a lower rate or are exempt altogether from IGIC. For example, food, books, and pharmaceutical products are taxed at a rate of 0%.

Here are the different rates of IGIC:

  • 0%: Food, books, pharmaceutical products, and some medical services.
  • 3%: Accommodation, restaurants, and some tourist services.
  • 7%: Most other goods and services.
  • 9.5%: Fuels and lubricants.
  • 15%: Tobacco products.
  • 20%: Alcohol beverages.

It is important to note that these are the general rates of IGIC. The actual rate that applies to a particular product or service may vary depending on the specific circumstances.