Tax
Tax advisory in Las Palmas - Gran Canaria
From our office in Vecindario (Santa Lucía de Tirajana) we help businesses, the self-employed and individuals across Gran Canaria meet their tax obligations and plan ahead using the Canary Islands' special tax regime (REF).
IGIC: the Canary Islands' own indirect tax
VAT does not apply in the Canary Islands; instead, the Canary Islands General Indirect Tax (IGIC) applies, with its own rates and formal obligations administered by the Canary Tax Agency. We prepare and file periodic self-assessments (form 420), the annual summary (form 425), and exempt-transaction returns (form 421 where applicable), checking that the tax is correctly charged and deducted.
We also review special regimes, turnover-based exemptions, and the treatment of trade with mainland Spain and abroad — where most of the errors that later trigger tax office requests originate.
Corporate and personal income tax
We prepare corporate tax returns for Canary SMEs, factoring in REF incentives (the Canary Investment Reserve/RIC, the Canary investment deduction, and the tangible-goods production allowance), and plan the year-end closing well ahead of time so July brings no surprises.
For the self-employed and individuals we handle quarterly instalment payments, withholdings and income tax returns, paying close attention to deductible expenses and Canary regional deductions.
Defence against tax requests and audits
We respond to information requests, file appeals and submissions, and represent you before the Spanish Tax Agency (AEAT) and the Canary Tax Agency, in both limited reviews and full audit proceedings.
Frequently asked questions
- What's the difference between VAT and IGIC?
- IGIC is the Canary Islands' own indirect tax and replaces VAT in the archipelago. Its rates are generally lower — a 7% general rate — and it has its own return forms (420, 421 and 425).
- How often is form 420 filed?
- Generally quarterly, within the month following the end of each calendar quarter. Larger businesses file monthly self-assessments.
- Do you work with companies based outside the Canary Islands that operate here?
- Yes. We advise mainland Spanish and foreign companies invoicing in the Canary Islands on indirect taxation, permanent establishment, and formal obligations.