Stalled Negotiations on Canary Islands’ Economic and Fiscal Regime
Efforts to transfer management and control of key fiscal instruments to the Canary Islands have stalled, with no resolution expected before the 2027 elections.
The Canary Islands’ government has been in negotiations with the Spanish state to gain control over the management of the Economic and Fiscal Regime (REF), including the Canary Islands Investment Reserve and the Special Canary Zone. Despite initial proposals, progress has been slow, particularly with the upcoming elections in 2027.
While discussions on airport co-management have advanced, the REF negotiations remain unresolved. The Canary Islands seek to manage fiscal incentives, but face opposition from state tax inspectors who warn of potential risks to the tax system.
For investors and property buyers in the Canary Islands, gaining more local control over fiscal policies could lead to more favorable investment conditions. However, the slow progress and potential opposition from national authorities may delay these benefits.
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