Importing a car to the Canary Islands: IGIC, registration and paperwork

Importing a car to the Canary Islands from Germany or another EU country does not work as it does on the mainland: for VAT purposes, the Canary Islands are not considered part of the territory of the Community, so instead of VAT you pay the Canary Islands General Indirect Tax (IGIC), which is settled with an introduction declaration at customs. For a petrol or diesel passenger car, Canary Islands law sets an IGIC of 9.5% if it has up to 11 fiscal horsepower and 15% if it has more; electric cars are at the zero rate. Then come the ITV (Spain's roadworthiness inspection), the registration tax, at lower rates than on the mainland, and the registration with the DGT (Spain's traffic authority).

Why the Canary Islands are different

The Spanish Tax Agency (AEAT) points this out when explaining VAT on trade between EU countries: for the purposes of the tax, the Canary Islands, Ceuta and Melilla are not considered part of the territory of the Community. That is why the rule applied on the mainland to a new car bought in another EU country, which we cover in VAT on a car bought in the EU, does not work here.

Instead, the Tax Agency explains that, when a vehicle coming from another EU country, other than the mainland or the Balearic Islands, is brought into the Canary Islands:

• no customs duties have to be paid;
• a DUA (single administrative document) or introduction declaration is filed in the VEXCAN environment, the single window for foreign trade in the Canary Islands;
• with that declaration the IGIC is settled, unless an exemption applies.

Two administrations are involved: the State Tax Agency is responsible for customs duties and the Canary Islands Tax Agency for the taxes of the Canary Islands Economic and Tax Regime, in particular the IGIC.

IGIC on a car: the rates

The rates are set by Canary Islands Law 4/2012, on administrative and tax measures. Imports of goods are taxed at the rates for supplies of goods of the same kind, and its article 59 regulates those for vehicles. For a private individual, the most common cases are these:

• Zero rate: electric vehicles, except those that are objectively for sporting or recreational use; hybrid electric vehicles whose emissions do not exceed 110 grams of CO2 per kilometre under the WLTP protocol; and fuel cell vehicles.
• 9.5%: motor vehicles with power equal to or below 11 fiscal horsepower and other vehicles not taxed at another rate.
• 15%: motor vehicles with power above 11 fiscal horsepower that are not taxed at the zero, reduced or general rate, as well as quads, caravans and motorhomes.

There are special rates for other cases, such as the reduced rate of 3% for vehicles intended for the regular transport of wheelchair users or people with reduced mobility, which requires prior recognition by the Canary Islands Tax Agency before the import, or the general rate of 7% for vehicles intended only for the transport of goods. The current wording of that article has applied since 1 January 2025; before importing, confirm with the Canary Islands Tax Agency the rate that applies to your car.

Fiscal horsepower is not the horsepower in the advert: it is calculated with the formula in Spain's General Vehicle Regulations (Reglamento General de Vehículos) and appears on the ITV card.

The steps, in order

1. Buy the car with all its documentation. Because the destination is not part of the Community territory for VAT purposes, clarify with the seller, before paying, how they invoice a sale destined for the Canary Islands.
2. Bring it to the islands, with the invoice and the car's documents at hand for customs.
3. File the introduction declaration in VEXCAN and settle the IGIC, or apply for the exemption if you qualify.
4. Pass the ITV required before registration, with the original documents from the country of origin and, if the car has EC type approval, the certificate of conformity.
5. Settle the registration tax. The Tax Agency points out that, after the import, where applicable, it has to be regularised.
6. Pay the road tax (impuesto de circulación) at your town council.
7. Request the plate at the Traffic Office (Jefatura de Tráfico). We explain the DGT file in how to register an imported car with the DGT.

Registration tax in the Canary Islands

It is also paid in the Canary Islands, with procedures similar to those of the mainland and the Balearic Islands but with rates one point lower in each bracket, according to the Tax Agency. With the state rates, in the Canary Islands they are 0% in the 1st bracket, 3.75% in the 2nd bracket, 8.75% in the 3rd bracket and 13.75% in the 4th bracket. For this tax, the law treats a car as new or used using the same criteria as VAT, even if the first registration takes place in the Canary Islands. We explain how it is calculated in the registration tax on an imported car.

Be careful if the car ends up on the mainland: when a vehicle that paid the tax in the Canary Islands is brought permanently into the mainland or the Balearic Islands within the first year, the holder has to self-assess the difference between the Canary Islands rate and that of the destination region, on the car's value at that moment. It is not required if a rate not lower than the mainland rate was already paid in the Canary Islands, nor in cases of change of residence that meet the requirements.

If you move to the Canary Islands with your car

Spain's Law 20/1991, on the Canary Islands Economic and Tax Regime, exempts from IGIC the personal property imported by individuals who transfer their habitual residence to the Canary Islands, when the importer requests it and its requirements are met. For a car:

• it must have been acquired under the normal conditions of taxation of the country of origin, without exemption or refund of taxes on leaving it;
• it must have been in your use for at least six months before the move, or twelve if it was bought with diplomatic exemptions;
• it cannot be transferred, assigned or leased during the twelve months following its import, except for justified cause;
• and you have to show that you stayed in your previous residence: one hundred and eighty-five days per calendar year if you come from the mainland, the Balearic Islands or another EU country, and twelve months if you come from outside.

The Tax Agency refers to the instructions of the Canary Islands Tax Agency for applying this exemption. For the registration tax there is also the exemption for change of residence that we explain in the change-of-residence exemption.

Mistakes to avoid

• Calculating VAT as if it were the mainland. In the Canary Islands the IGIC is settled with the introduction declaration.
• Looking at the horsepower in the advert. The 9.5% or 15% bracket depends on fiscal horsepower.
• Taking for granted the zero rate on a hybrid. It only applies to those that do not exceed 110 grams of CO2 per kilometre under the WLTP protocol.
• Taking the car to the mainland within a year without allowing for the difference in registration tax.

Before closing the purchase, confirm the IGIC rate and the procedures for your case with the Canary Islands Tax Agency or a customs agent.

Sources consulted

Checked on 11 October 2026. We link to the original source so that you can consult the current text.

• Adquisiciones y entregas intracomunitarias. Agencia Tributaria.
• Importación. Introducción de un vehículo en Canarias y expedición a España peninsular o Baleares. Agencia Tributaria (Aduanas).
• Ley 4/2012, de 25 de junio, de medidas administrativas y fiscales (Canarias), texto consolidado: artículos 51 y 59. BOE.
• Real Decreto 2822/1998, Reglamento General de Vehículos (texto consolidado), anexo V. BOE.
• Real Decreto 750/2010, procedimientos de homologación de vehículos (texto consolidado), artículo 5. BOE.
• Matriculación de vehículos nuevos y vehículos provenientes del extranjero. DGT (sede electrónica).
• Matriculación en las Islas Canarias. Agencia Tributaria.
• Primera matriculación de medios de transporte: tipos impositivos. Agencia Tributaria.
• Ley 38/1992, de Impuestos Especiales (texto consolidado), artículo 65. BOE.
• Ley 20/1991, de 7 de junio, de modificación de los aspectos fiscales del Régimen Económico Fiscal de Canarias (texto consolidado), artículo 14. BOE.