IGIC Revenue Rises 4.5% in Canary Islands as Tax Take Reaches €1.36 Billion
Canary Islands tax revenues increased during the first six months of 2026, with IGIC generating €1.361 billion for the regional coffers — an increase of 4.5% compared with the same period last year.
New figures from the Canary Islands Statistics Institute (ISTAC) show that revenue from the Impuesto General Indirecto Canario (IGIC) continued to grow between January and June, providing the largest share of the Canary Islands’ tax income.
The figures are particularly relevant for people living in Lanzarote, as well as the millions of visitors who spend money on accommodation, restaurants, shopping, car hire and other services across the island.
Official ISTAC figures
Canary Islands collect €1.361 billion through IGIC
Between January and June 2026, the Canary Islands collected €1.361 billion through IGIC, representing a 4.5% increase on the first half of 2025.
The figures are calculated after tax refunds have been taken into account, meaning they represent the net amount collected.
Across all taxes included in the regional figures, the Canary Islands generated €1.521 billion during the first six months of the year, an increase of 4% compared with the same period in 2025.
The latest figures follow increases recorded earlier in 2026. During the first four months of the year, IGIC revenue had been running 7% above the previous year’s figure, while first-quarter revenue was 2.4% higher.
What is IGIC and why does it matter in Lanzarote?
IGIC is the Canary Islands’ indirect consumption tax, broadly comparable to VAT elsewhere in Spain. It applies to goods and services supplied in the Canary Islands and to imports arriving in the islands.
The standard rate is currently 7%, although different goods and services can be subject to zero, reduced, super-reduced or higher rates depending on what is being purchased.
For tourists visiting Lanzarote, this means IGIC is already incorporated into the cost of many everyday purchases and services, including meals, shopping and various tourist activities.
For residents, the tax is equally relevant to household spending and the cost of goods and services purchased on the island.
Import and merchandise tax also increases
IGIC wasn’t the only source of revenue to record growth.
The Arbitrio sobre Importaciones y Entregas de Mercancías (AIEM) generated €150 million between January and June, up 0.6% compared with the same period in 2025.
AIEM is a Canary Islands tax connected with the production and importation of certain goods. One of its purposes is to provide protection for local Canary Islands production, with specific products benefiting from reductions or exemptions.
This is particularly significant in an island economy such as Lanzarote, where many products have to be transported into the archipelago.
Revenue from vehicle tax moves in the opposite direction
There was a different trend when it came to the Special Tax on Certain Means of Transport.
Revenue from this tax fell by 9.8%, with €10 million collected during the first half of 2026.
The decline contrasts with the growth recorded through IGIC and AIEM and shows that not every category of Canary Islands tax revenue is moving in the same direction.
More money collected through transferred taxes
The figures also include €293.8 million in taxes transferred from the Spanish State.
Of this amount, €235.9 million came from the Property Transfer and Stamp Duty tax (ITP-AJD).
These figures are separate from the €1.361 billion collected through IGIC and help give a broader picture of tax revenue being generated across the Canary Islands.
What could higher IGIC revenue mean for Lanzarote?
The latest figures don’t mean that people in Lanzarote will automatically see lower prices or any immediate change to the tax they pay.
Instead, they provide an indication of the level of economic activity and consumption being captured through the Canary Islands’ indirect taxation system.
For Lanzarote residents, IGIC is something encountered in everyday spending, while for tourists it forms part of the wider cost of visiting the island.
The increase also comes at a time when taxation remains an important economic and political issue in the Canary Islands, particularly around discussions about the cost of living, business expenses and whether increased tax revenues could eventually translate into changes in taxation.
For now, however, the headline figure is clear: Canary Islands IGIC revenue reached €1.361 billion during the first half of 2026, up 4.5% year-on-year.
