The Canary Islands’ own tax
IGIC stands for Impuesto General Indirecto Canario, the Canary Islands general indirect tax. It is the tax that is charged on consumption in the islands: what you pay when buying products or hiring services.
Its role is similar to that of the VAT applied on the mainland. The difference is that in the Canaries VAT is not used, but this own tax instead. That is why, in the islands, prices carry IGIC rather than VAT.
Another important difference is the rates. In general, IGIC rates are lower than mainland VAT. This is part of the special tax system that the Canaries keep because of their position as a remote territory.
What it means in your booking
Tourist activities are also subject to this tax. A boat outing, like ours, is considered a service and carries its corresponding IGIC.
For you, as a traveller, this is straightforward. The tax is already included in what you see. It is not a surprise charge that appears at the end: it forms part of the price of the service in a transparent way.
We like things to be clear and free of small print. Knowing what IGIC is helps you read any booking or invoice for an activity carried out in the Canaries with clarity.
A feature of island life
IGIC is one of those things that set the Canaries apart from the rest of the country. Alongside other particularities, it reflects the archipelago’s condition as a territory with an economic regime of its own.
For the visitor it is usually good news. As the rates are lower, many products and services turn out to be somewhat cheaper than on the mainland. It is a small detail of the Canarian system worth knowing when you travel to the islands.
