A new year, new ground rules on taxation in Tenerife.
But this time it is good news! Indeed, the government has reached an agreement to reduce taxes in Tenerife, better known as the IGIC (Impuesto General Indirecto Canario), from 7% to 6.5% from 01.01.2019 on most of the products and services for the Canary Islands, which should lead to a saving for the consumer of about 200 million euros.
In addition, there is also an agreement for a 0% tax on basic needs such as food and your energy bill. In other words, as of today 01 January 2019, you will no longer pay taxes on your electricity bill in Tenerife! Very good news for everyone who owns real estate here!
Unfortunately nothing has changed in the tax for non-residents with real estate in Tenerife.
Be lowered from 7% IGIC to 6.5% IGIC:
- All products and services that do not fall into exceptional or other categories.
Be reduced from 3% IGIC to 0% IGIC:
- Special bread.
- Olive oil and a number of other oil products.
- Unprepared pasta, spaghetti, etc.
Speaking of a saving…