The Canary Islands enjoy a special tax regime within the European Union that offers significant advantages for property buyers. This regime, known as REF (Economic and Fiscal Regime), makes the archipelago a privileged destination for real estate investment.

IGIC: Reduced Tax Instead of VAT

While mainland Spain has a general VAT of 21%, the Canary Islands apply IGIC with a general rate of 7%. For new construction homes, this represents considerable savings on the final property price.

Property Transfer Tax (ITP)

When buying resale properties, the ITP in the Canary Islands is 6.5%, lower than many mainland regions where it can reach up to 10%. This difference represents thousands of euros in savings.

Canary Islands Special Zone (ZEC)

For investors establishing business activities, the ZEC offers a reduced corporate tax rate of 4%, one of the lowest in Europe. Ideal for those combining real estate investment with business.

Reserve for Investments in the Canaries (RIC)

Allows companies and self-employed individuals to reduce up to 90% of their profits from the tax base if reinvested in assets in the Canary Islands, including real estate properties.

At Teivida Homes, we work with specialized tax advisors who will help you maximize these benefits. Contact us for a personalized consultation.