Canary Islands 'could offer Brexit tax break for Brits'

The government of the Canary Islands are examining plans to make holidays cheaper for Brits post-Brexit, in a bid to ensure holidaymakers keep coming.

The Canary Islands include the likes of Tenerife and Fuerteventura, and are looking at a potential deal worth €100 million that would mean Brits are exempt from VAT.

It relates to the IGIC (Canary Indirect General Tax), with around a 7% charge on restaurant and bar bills. This move would allow British tourists to reclaim such payments, as Russian visitors currently are able to do.

This is only possible because of Brexit, with Brits soon being able to take advantage of being classed as non-EU tourists.

Now The Sun report say that the legal process to get this change in place for Brits is underway, with around 5 million having visited in 2017.

Figures released in 2017 show that Brits spent €4.5 billion in the Canaries in 12 months, 30% of total tourist turnover.

Treasury Secretary Rosa Davila has said: “The regional government wants to keep this level of visitors and expense of tourists from the UK in the future in spite of the scenario in which the pound could be devalued.”

She also added that: “We want the Brits to continue to visit the Canaries and to continue to buy.”

This follows on from the Portuguese government announcing that there will be UK-only ‘fast track’ airport lanes post-Brexit as they work to ensure Brits keep visiting and spending their hard-earned cash.

As the Portuguese PM made clear: “Millions of Britons visit Portugal as tourists every year – we have to ensure the flow is not interrupted.”

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