Canary Islands Tax and Administrative Reforms (2025)

Overview

On May 19, 2025, the Canary Islands government announced significant updates to its tax management and administrative structures.

Main Reforms

• Simplifying procedures for businesses and individuals involved in certain exempt activities, such as residential leasing, to reduce bureaucratic burdens.
• The new decree excludes many property landlords from the obligation to submit censal (tax liability) declarations if they only earn exempt rental income.

"This change aims to ease compliance for small landlords and sole proprietors," the government stated.

• Retroactively effective from January 2024.
• Modified rules governing the Junta Económico-Administrativa, a key advisory body overseeing tax issues.
• Establishes procedures for replacing members in cases of vacancies or absences affecting both vocalías (positions) simultaneously, ensuring continuity of its operations.

Broader Implications

These measures reflect the Canary Islands’ broader effort to:

• Streamline tax procedures
• Improve government efficiency
• Respect principles of transparency and legal certainty

Impact on Residents and Entrepreneurs

• Simplified tax filing processes
• Ensured stable governance of public tax bodies
• Fostered a more business-friendly environment in the islands