Car dealerships in the Canary Islands pay 15% more than the national average

The sector accounts for nearly 7,000 direct jobs and 13,000 indirect jobs in the archipelago

EKN

March 6 2025 (15:37 WET)
Cabrera Medina dealership with cars illuminated for Christmas. Photos: Juan Mateos.
Cabrera Medina dealership with cars illuminated for Christmas. Photos: Juan Mateos.

Automotive dealerships in the Canary Islands play a key role in the region's economy, with an impact of more than 2,071 million euros and the generation of almost 20,000 jobs, both direct and indirect.

This is reflected in the report "Impact of automotive dealerships on the Spanish economy", prepared by the consulting firm Atrevia and presented at the annual Faconauto Congress.

The study highlights the multiplier effect of the sector on the Canary economy. The direct impact, derived from the dealerships' own activity, amounts to 1,658 million euros, including sales revenue, salaries and operating investments.

To this figure are added 222 million euros in indirect impact, generated by the relationship with sectors such as finance, insurance or energy, and 191 million in induced impact, resulting from consumption derived from employment and activity in the sector.

In terms of employment, dealerships continue to be a source of stable and qualified work in the Canary Islands, with 6,701 direct jobs and 13,109 indirect jobs. In addition, salaries in the sector are 15% higher than the national average, which reinforces its attractiveness as an employer.

The report also highlights the tax contribution of Canary Island dealerships, with a contribution of more than 209 million euros in direct and indirect taxes, including VAT, registration tax, circulation tax and Social Security contributions.

 

A key sector in the national economy

At national level, automotive dealerships generate an economic impact of 56,123 million euros, equivalent to 3.7% of GDP. This impact is broken down into 45,030 million euros of direct impact, 5,794 million of indirect impact and 5,298 million of induced impact, with more than 60% concentrated in Madrid, Catalonia and Andalusia.

The tax contribution of the sector reaches 5,803 million euros, which represents 0.9% of the national budget, with 2,151 million in direct taxes and 3,652 million in indirect contributions, such as VAT and registration tax.

In employment, dealerships generate almost 500,000 jobs in Spain, with 159,168 direct jobs and 333,612 indirect jobs, and a ratio of 2.1 indirect jobs for each direct job. In addition, professionals in the sector receive an average salary of 29,743 euros per year, 15% higher than the national average.

 

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