Canary Islands Government Announces New Rules for Simplified IGIC Regime 2026

Overview

The Canary Islands government has announced new rules for the simplified regime of the General Indirect Tax (IGIC) for 2026. This regime offers easier tax procedures for small businesses and self-employed individuals involved in specific activities, provided they meet certain income and operational thresholds.

Eligible Sectors

The new regulations specify which sectors are eligible, including:

• Agriculture
• Forestry
• Livestock
• Other designated economic activities.

Eligibility Criteria

The regime sets income and import limits to determine eligibility, with exclusions if these thresholds are surpassed.

Purpose and Objectives

The purpose of this update is to:

• Streamline tax processes
• Reduce administrative burdens
• Promote economic activity within the islands.

Businesses falling under the simplified regime will follow a set of indices and modules for calculating their tax contributions, making compliance more straightforward.

Emphasis on Transparency and Security

"The measures emphasize transparency and legal security, aligning with national and European standards."

Implementation Details

• The rules will apply throughout 2026.
• The government will publish detailed indices and activity lists to ensure clarity for entrepreneurs and residents.

Goals

This move aims to:

• Support small businesses during a potentially challenging economic period
• Ensure they can comply with tax obligations without excessive bureaucracy.