The Decree-Law 7/2025 extends the application period of the zero-rate of the Canary General Indirect Tax (IGC) to operations related to the volcanic eruption in La Palma, effective from 1 January 2026. This change benefits businesses and operators involved in eruption-related activities, reducing their tax burden during this period. The modification is based on Additional Provision 6 of the consolidated text approved by Decree-Law 1/2025, dated 13 October, and published in BOC No. 254, dated 24 December 2025.
For companies conducting operations derived from the volcanic eruption in La Palma, their tax burden will be significantly reduced from 1 January 2026. Tax authorities may optimise the monitoring of operations within the context of the crisis. Advisors must verify whether operations meet the criteria for applying the zero rate. Individuals or sole traders operating in this field may also benefit if their activities are directly linked to the eruption.
The tax team reviews your specific situation.