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Canary Islands – Important Facts

The Canary Islands also known as the Canaries are an archipelago and autonomous community of Spain located just off the southern coast of Morocco, 100 kilometres (62 miles) west of its southern border. The Canaries are among the outermost regions (OMR) of the European Union proper. It is also one of the eight regions with special consideration of Historical Nationality recognized as such by the Spanish Government.

The economy is based primarily on tourism, which makes up 32% of the GDP. The Canaries receive about 12 million tourists per year. Construction makes up nearly 20% of the GDP and tropical agriculture, primarily bananas and tobacco, are grown for export to Europe and the Americas. Ecologists are concerned that the resources, especially in the more arid islands, are being overexploited but there are still many agricultural resources like tomatoes, potatoes, onions, cochineal, sugarcane, grapes, vines, dates, oranges, lemons, figs, wheat, barley, maize, apricots, peaches and almonds.

The islands are outside the European Union customs territory and VAT area, though politically within the EU. Instead of VAT there is a local Sales Tax (IGIC) which has a general rate of 7%, an increased tax rate of 13.5%, a reduced tax rate of 3% and a zero tax rate for certain basic need products and services. Consequently, some products are subject to import tax and VAT if being exported from the islands into mainland Spain or the rest of the EU.

Important Details

  • Country ISO3:ESP
  • Country Code:724
  • Income Group:Europe & Central Asia
  • Lending Category:High income
  • Region:Not Available
  • Currency Unit:Euro (EUR)
  • WTO Member:No
  • Trade organisations:EU, WTO and OECD
  • world rank:43
  • Regional Ranking:20th in Europe