Why the Canary Islands are different from the rest of Spain
The Canary Islands have a special fiscal status within the EU. They are part of the EU customs territory — meaning EU common external tariff rates apply to goods arriving from outside the EU — but they are excluded from the EU VAT area. This is the key distinction that changes everything for logistics.
In practical terms: goods sent from Madrid to Barcelona move freely with no customs formalities. Goods sent from Madrid to Las Palmas require a customs export declaration on departure and a customs import declaration on arrival. They are treated more like an export than an internal transfer.
The Canary Islands are not the only Spanish territory with special rules. Ceuta and Melilla are also outside the EU customs territory and have their own regimes. If you ship to any of these three, the standard mainland Spain logistics playbook does not apply.
IGIC: the Canary Islands tax that replaces IVA
Instead of IVA (Spain's standard VAT at 21%), the Canary Islands levy IGIC — Impuesto General Indirecto Canario. The rates are significantly lower:
| Category | IGIC rate | Mainland IVA equivalent |
|---|---|---|
| Standard goods and services | 7% | 21% |
| Essential goods, certain food | 3% | 10% |
| Basic staples, some health products | 0% | 4% |
| Luxury goods, tobacco, alcohol | 9.5% – 13.5% | 21% |
For B2B shipments to IGIC-registered businesses in the Canary Islands, the IGIC paid on import is recoverable in their tax return — it is a cash flow cost, not a permanent cost. For businesses that are not IGIC-registered (non-commercial recipients, for example), it is an additional permanent cost.
AJ Logistics · Madrid
Need to ship goods to the Canary Islands?
We handle the export declaration on the mainland side and coordinate import clearance in Las Palmas or Tenerife.
What documents do you need to ship to the Canary Islands?
For any commercial shipment from mainland Spain to the Canary Islands you need the same core set of documents required for any export:
- Commercial invoice — product description, HS tariff code, quantity and declared value
- Packing list — gross and net weight, dimensions, number of packages
- Transport document — airway bill for air freight, bill of lading for sea freight
- Export DUA — customs declaration filed on the mainland side before departure
- Import DUA — customs declaration filed on arrival in the Canary Islands by the local customs agent
The importer in the Canary Islands needs a Spanish EORI number (the same format as mainland — ES + CIF) and, if they are IGIC-registered, their registration number for the tax return recovery. For more on EORI numbers in Spain, see our dedicated guide.
What are the most common mistakes?
The most frequent problem is treating a Canary Islands shipment like a domestic Spain delivery — no customs declarations, no DUA, no invoice with HS codes. Goods arrive at Las Palmas port or airport and get held by customs because the paperwork was never filed. Getting this corrected after the fact takes days and generates additional costs.
The second most common mistake is not accounting for IGIC in the landed cost calculation. If your buyer in the Canaries is not IGIC-registered, the 7% is an additional cost they bear permanently — and it should be agreed in the commercial terms before the shipment, not discovered on the invoice.
