IGIC is the sales tax here in the Canary Islands.

For an SL company, you’ll be required to start charging IGIC from the day you begin, unless you are offering one of the few services which are exempt. We’ll advise you if that’s the case when we register your company.

As a self-employed freelancer or “Autonomo”, you’ll need to start charging it when your annual turnover reaches or surpasses €30,000. We’ll advise you when you reach this limit, it’s calculated at the end of the calendar year.

If you began your business part way through the year, it’ll be evaluated proportionally to the number of months you worked. So if you started in July and worked half the year, and surpassed €15,000 which is half the amount, you would begin applying IGIC the following year.

It’s important to understand that you’ll only charge IGIC to clients based in the Canary Islands and any private individuals based outside the EU.

Tax rules vary depending on who the final client is, i.e. an individual or a business, and where they are based, for example inside the Canary Islands or outside, in the EU or outside the EU, or worldwide.

The tax you charge or retentions you have to hold depends on both these criteria. We’ll look at your business model and who you’re serving, and advise you based on your actual setup.