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BOE-A-2026-10119 ·11 May 2026 ·Royal Decree-Law critical
Tax

Canary companies with La Palma volcanic operations: 1 month to apply zero IGC rate to eruption-related transactions

The Decree-Law 7/2025 extends the zero IGC rate application to volcanic eruption-related operations in La Palma, starting 1 January 2026. This applies to construction, imports, and goods. The amendment is based on Additional Provision 6 of the consolidated text from Legislative Decree 1/2025, published in BOC No. 254 of 24 December 2025 (art. 1).

In 2 key points

  1. Zero IGC rate applies to volcanic eruption-related operations in La Palma (art. 1)
  2. Effects from 1 January 2026 (art. 1)

How it affects those involved

Businesses in the Canary Islands operating in La Palma due to volcanic eruption benefit from the zero IGC rate from 1 January 2026. Construction, imports and goods operations are tax-exempt. Tax authorities must update records of affected operations. The application period starts 1 January 2026.

Lifecycle

2026-05-11PublishedPublished in the BOE
2026-01-01Into forceComes into force (art. 1)
Official text Based on BOE data (boe.es). Information, not advice.

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This analysis is informational only and does not constitute legal advice or create a client-adviser relationship. BM Consulting.
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