Note
IGIC on new homes in the Canary Islands
Quick answer
The Canary Islands apply their own indirect tax, IGIC, to first deliveries of new housing, with reduced rates for a habitual home within price limits in the 2018 law. We have verified that text but not later changes, so current rates are not printed here.
Applies toBuyers of a new home in the Canary Islands. Buyers elsewhere in Spain should read the VAT and AJD pages.
On this page: 7 sections
§ 1A different indirect tax
The Canary Islands have their own tax regime. Where the rest of Spain applies VAT to the first sale of a new home, the Canarian law applies IGIC, the general indirect tax of the islands. For a buyer the practical consequence is that the figures in the VAT part of this section do not carry over, and a quote from a developer in the islands should name IGIC and state its rate. The general picture for the rest of the country is in how new homes are taxed.
§ 2What the 2018 law set
Canarian Law 4/2018 set IGIC rates for first deliveries of new housing by promoters. It provided reduced rates for a habitual home within price limits, with conditions on the buyer, such as age, family situation or income, and a requirement connected with the sale of a previous main home. The text we verified is the law as enacted in 2018, published in the BOE, and it is the source for this page.
§ 3Why we do not print rates
Tax rates are the part of a law that changes most often. We have verified the 2018 text, but we have not verified every later amendment, and a rate that was right in 2018 may not be right today. Printing it would risk misleading a buyer who budgets from it. We prefer to say plainly what we know, and to give you the questions that produce a reliable answer.
§ 4Questions to ask
Ask the developer to state in writing which tax applies, at what rate, on what base and whether any reduced rate is claimed. Ask your adviser to check the rate against the current text of the Canarian law, and to say whether you qualify for a reduction. Ask who pays, and when. Keep the answers with the contract.
§ 5Stamp duty and transfer tax in the islands
The same Canarian law also sets rules for stamp duty on the deed and for the transfer tax on resale homes, including reduced rates for a habitual home. The deed tax works as described in AJD on a new home, but the rate is set by the Canarian authorities. The comparison between the taxes on a new build and on a resale, which in the islands means IGIC against the Canarian transfer tax, follows the logic of VAT compared with ITP.
§ 6Rates elsewhere
If you are comparing the islands with the mainland, the deed tax rates we have verified for mainland regions are in stamp duty rates in each region. Do not assume that a mainland rate applies in the islands, or the reverse.
§ 7Verification note
When we have checked the current Canarian rates against the official consolidated text and the regional tax authority, we will add them here with the date, and log the change on the updates page.
FAQRelated questions
Do I pay VAT in the Canary Islands?
On a new home the Canarian indirect tax is IGIC, applied under Canarian law. The tax shown on your developer contract should be named and its rate stated. Ask for both in writing and have your adviser check them.
Why do you not print the IGIC rates?
We verified the Canarian law of 2018 as enacted, and cannot confirm that its rates and limits are unchanged today. A wrong rate is worse than none, so we say what we know and point to the official source.
Are there reduced rates for a main home?
The 2018 law set reduced rates for first deliveries of housing that will be a habitual home, within price limits and conditions on the buyer. Whether they apply today and to you is for your adviser to confirm in writing.
Sources
- Boletín Oficial del Estado: Texto refundido de la Ley del Impuesto sobre Transmisiones Patrimoniales y Actos Jurídicos Documentados (RDLeg 1/1993) (official source, opens in a new window), Arts. 30 and 31: AJD base and default rateLast checked 17 October 2026
- Boletín Oficial del Estado: Ley 4/2018 de Canarias, de medidas fiscales para mejorar el acceso a la vivienda (BOE-A-2019-283) (official source, opens in a new window), IGIC on first deliveries of housing; as enacted in 2018Last checked 17 October 2026
Tax note. Rates depend on the region, the type of property and the buyer, and they change. Figures here are dated and sourced; examples are illustrative and show their assumptions. Confirm yours with the regional tax agency or a tax adviser.