Canary Islands may spare British tourists tax after Brexit

Chris Butler February 15th, 2019 8,239 views

The Canary Islands government are said to be worried about the detrimental impact Brexit could have on the number of British tourists visiting the Spanish islands, and may exempt Brits from a 6.5% tax.

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British tourism is a great source of income for the Canary Islands, but the President of the islands, Fernando Clavijo Batlle, fears a post-Brexit drop in the value of sterling could see the price of holidays to the likes of Tenerife, Lanzarote and Gran Canaria become too expensive for many UK holidaymakers.

Clavijo Batlle has been assessing the possibility of removing the current "Canary Indirect General Tax" for British citizens, in the hopes of increasing competitiveness and encouraging continued tourism to the islands.

The Canary Indirect General Tax (IGIC) is a 6.5% tax on products and services (such as restaurant and bar bills) and acts as an alternative to the standard EU VAT of around 21%. Under the current tax, a normal €70 restaurant bill would cost €74.55.

Inevitably, a more cautious approach from the Canaries government is likely to be taken when coming to a decision, due to the Canaries' popularity with British tourists - the potential implications, both good and bad, resulting in the removal of the tax are of higher risk.

No official decision has been made from the Canaries government as of yet, and probably won't until the full details of the Brexit deal are revealed.