Canary Islands' Simplified Import Duty Tax Regime

Overview

The Canary Islands government has announced the implementation of a simplified tax regime for handling import duties on goods within the region, effective throughout 2026. This regime targets specific sectors involved in the production of goods, setting clear rules for calculating the applicable quotas and ensuring easier compliance for local businesses.

Key Features

• A cap on benefiting businesses: companies with a yearly turnover exceeding 3 million euros in relevant sectors will not qualify.
• For eligible businesses, the law simplifies tax payments by dividing the total due into quarterly installments based on predetermined modules.
• Modules depend on factors such as staff count, local space, and energy consumption.

Objectives

• Streamline tax processes
• Reduce administrative burdens
• Support local entrepreneurs during a critical economic period

Additional Provisions

• Adjustable modules in case of catastrophic events like fires or floods impacting activity
• Provisions for temporary incapacity of business owners

Benefits

• Promotes transparency, legal certainty, and efficiency
• Aligns with regional and EU policies
• Provides easier navigation of import taxes for expat residents and entrepreneurs
• Encourages more local economic activity while maintaining legal compliance

Quotes

The new rules aim to streamline tax processes, reduce administrative burdens, and support local entrepreneurs during a critical economic period.