The Governing Council of the Canary Islands has approved this week a decree-law that includes a set of fiscal, economic, and direct support measures for the productive sectors with the aim of mitigating the effects of the international crisis derived from the war in the Middle East.
The package of actions responds to the need to adapt to the archipelago the state measures contained in Royal Decree-Law 7/2026, of March 20, which are not directly applicable in the Canary Islands due to its specific tax regime, and thus reinforce the socioeconomic shield in a territory especially vulnerable due to its condition as an outermost region.
The set of measures will have, finally, an estimated cost of 29,8 million euros, which could reach 60 million euros annually in case the crisis is prolonged.
The approval of the decree-law is justified by the evolution of the conflict and its immediate impact on the prices of energy, fuels, transport and basic goods, with special incidence in strategic sectors such as transport, tourism, the primary sector and industry.
Fiscal measures on energy, fuels and commodities
The decree-law establishes the temporary application of the zero rate of IGIC to energy products, including fuels derived from petroleum, gas, biomass and firewood, with the aim of containing the price increase and reducing the cost for families and businesses. This measure would have an estimated cost of 14.1 million euros annually, and 3.9 million euros for an initial period of 100 days, which is the period established by the state decree-law for its aid package.
Likewise, the refund of the Special Tax is increased up to 99% on fuels for farmers and transporters, which will entail a cost of 19.4 million euros annually and 5.3 million in the aforementioned 100 days.
As a measure of support for families, the decree incorporates new products into the basket of essential goods that are taxed at 0% IGIC. Specifically, salt, butter, and coffee are now included. This measure will have an estimated economic impact of 3.2 million euros annually and 900,000 euros in the initial period of application.
Support for self-employed individuals, industrial and primary sectors
The rule allows raising up to 50,000 euros the annual invoicing limit to qualify for the special regime of the small entrepreneur in the IGIC, which will allow reducing tax and administrative burdens, the so-called tax declaration exemption.
This measure is aimed at natural persons (self-employed) and is voluntary, those who meet the established requirements being able to opt to join this regime. Likewise, a transitional regime is established to facilitate incorporation from July 1, 2026. The estimated cost of this measure amounts to 12.5 million euros for the current year.
The decree-law foresees the authorization of an extraordinary item for the development of support actions for the Canarian industrial and primary sector, with the aim of compensating for the increase in energy and production costs. In this area, an additional allocation of 7.2 million euros is contemplated.
