Tuesday, 08 January 2019 11:45

Gran Canaria Tip: There Is No Tourist Tax In The Canary Islands

There is no tourist tax to pay in Gran Canaria There is no tourist tax to pay in Gran Canaria photosgrancanaria.com

Despite regular press reports in the UK and in Europe about a tourist tax, Gran Canaria and the Canary Islands don't impose any levy on visitors.

Some local politicians in Gran Canaria and the other Canary Islands have raised the possibility of a tourist tax but so far, the idea hasn't taken off.

Many people believe that raising the cost of visiting Gran Canaria would put people off booking, or make them spend less when they are on the island. Others say that a tourist tax would be difficult to collect and others worry about where the money would be spent.

For example, the idea behind a tourist tax is that the money is used to protect the environment from the pressure it faces from lots of visitors. But how do we know that politicians will spend the money on protecting the environment?

An alternative to a tourist tax in Gran Canaria and the Canary Islands is to raise the cost of cigarettes and tobacco which are currently among the lowest in Europe. This would raise more money and reduce the long term cost of the local health service by discouraging local smokers. 

Gran Canaria is very low tax for tourists

The only tax that visitors to Gran Canaria have to pay is local VAT (called IGIC)on their food and shopping. It is set at a very low 7% (maybe dropping to 6.5%) in 2019. If you eat out or buy anything in Gran Canaria shops, you'll often see the 7% IGIC added at the bottom of the bill. 

If you see anything else added on top of the 7%, the restaurant has added a service charge (not common in Gran Canaria). 

Published in Tip of the day

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Tip of the day

  • Tip Of The Day: Avoid Bank Card Charges By Paying In Euros
    Tip Of The Day: Avoid Bank Card Charges By Paying In Euros

    Save money and avoid rip-off bank charges while in Gran Canaria by paying in euros when using your credit or debit card.

    Many bars and restaurants in Gran Canaria, and in almost all European holiday destinations, give you the option of paying in euros or in your home currency. Opting for your own currency, while it may seem like the safer option, can add as much as 5% to the bill as it triggers dynamic currency conversion. 

    DCC basically means that the exchange rate is calculated at point of sale rather than by your bank. It allows you to see the total cost of the transaction in your own currency but adds up to 5% to the total because it uses a terrible exchange rate. 

    Since the extra money is shared between your bank and the merchant, some places will automatically bill you in your own currency and hope you don't notice. You have the legal right to refuse and void the transaction should this happen. 

    ATMs too

    The same applies when taking money out of ATM machines in Gran Canaria (and anywhere in Europe); Always choose the local currency option to avoid losing money to poor exchange rates.

    If you opt for the local currency option, using bank ATMs is often the cheapest and safest way of getting euros in Gran Canaria. It's far safer than having a big pile of euros hidden in your room or tucked into your shorts.

    More details in this Daily Telegraph article.

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