Tax revenue collected through IGIC has grown by more than 100% since 2021
Tax revenue from the Canary Islands’ indirect tax, known as IGIC, continues to rise and is on course to reach a new historic high in 2025. By October, the Government of the Canary Islands had collected €2.16 billion through IGIC.
Higher consumer spending and price stabilisation following recent increases have helped keep revenue on an upward trend, bringing it close to a new peak.
During the first ten months of 2025, IGIC revenue was almost 7% higher than in 2024. However, compared with the same period in 2021, when the islands were still recovering from the pandemic, collections have more than doubled, rising by 105.11%.
Since then, the pace of growth has slowed when compared with 2023 (up 16.4%) and 2022 (up 32.9%).
2025 expected to beat last year’s total
All indicators suggest that 2025 will surpass the €2.26 billion raised through IGIC in 2024. Last year, monthly revenue from the tax exceeded €100 million every month, with a peak of €378 million recorded in February. If the current trend continues, total IGIC revenue for 2025 could reach around €2.4 billion.
Domestic consumption remains the main driver of IGIC income. Transactions within the Canary Islands account for 82.3% of total revenue from the tax, while imports generate the remaining 17.7%, according to analysis by the Canary Islands Tax Agency.
Overall tax income also up
Looking at all taxes combined, total revenue reached €3.33 billion by October 2025. This is higher than the figures recorded in the same period of 2024, 2023 and 2022, with increases of 6%, 12.7% and 25.7% respectively. Despite this growth, the tax authority describes the increase as “moderate” rather than exceptional.
IGIC remains a political issue
IGIC continues to be at the centre of political debate. The Popular Party went into the last regional elections promising to cut the standard IGIC rate from 7% to 5%, arguing that it places too much pressure on families. So far, only limited and targeted reductions have been introduced.
Canary Islands Finance Minister Matilde Asián has previously stated that a broader reduction is not currently possible under existing budget rules, as it would significantly reduce public spending capacity.
Other taxes: winners and losers
Most taxes in 2025 have seen increased revenue, including duties on imports and goods, landfill and waste incineration taxes, tobacco tax, fuel tax and stamp duty on legal documents.
In contrast, revenue from Inheritance and Gift Tax has fallen sharply. By October 2025, it had raised €26.1 million, representing drops of 35.7%, 63.1% and 50.9% compared with the same periods in 2024, 2023 and 2022. This decline is largely due to tax relief measures approved by the Canary Islands Government, one of the first initiatives introduced by the coalition administration formed by Coalición Canaria and the Partido Popular.
Share:
