Let me tell you about shopping in the Canary Islands, on Tenerife, Gran Canaria, and beyond. You’ll learn about the peculiarities of local stores, shopping malls, markets, and their operating hours. And most importantly, I’ll explain which taxes are included in the prices of all goods on the islands, and how a regular tourist can claim Tax Free for their purchases.

Shopping in the Canary Islands: Key Points

Here are the main things a tourist needs to know:

  • The Canary Islands are part of Spain and the European Union. There are huge shopping malls here, with all the global brands you can imagine. It’s a shopper’s paradise.

Also, take a look at the map to see where the Canary Islands are located. They are situated 1000 km from the nearest point of mainland Europe, which brings its own unique aspects.

Interesting to know:

The Canary Islands have OMR status, which in simple terms means “Outermost Regions” Due to this, the Canary Islands are a special economic zone. To reduce the cost of all goods due to expensive logistics over the 1000 km distance, the Canary Islands are exempt from VAT, a whole range of excise duties, and EU customs rules do not apply on the islands.
Shopping in the Canary Islands
The photo was taken in 2025 on Gran Canaria, where gasoline in mainland Spain costs around 1.8 euros per liter, while in the Canaries, it costs 1.229 euros.

Prices in the Canary Islands for gasoline, clothing, and basic food items, in other words, goods in the main consumer basket, are among the lowest in all of Europe. This doesn’t apply to the tourism sector, especially rental accommodation, where prices have increased significantly in recent years. But more details on that in the article: prices in the Canaries for all categories of goods and services that interest tourists.

About Markets and Stores in the Canaries: Specifics

Here are the main retail chains on the islands where you’ll be shopping for groceries:

  • Mercadona – Spanish retail chain of stores, my favorite stores
  • DINO (depending on the size of the store – Superdino or Hiperdino) – a chain of similar size and popularity as Mercadona
  • European mainland retail chains:
    • Carrefour, a French chain, with only a few stores in major shopping malls in the capitals of Tenerife and Gran Canaria.
    • Many stores of the German chain ALDI
    • and the Dutch chain SPAR, but they are also European chains, and I only go there when there are no proper stores nearby 🙂 But on some islands, for example, there are no Mercadona or Dino at all, only Spar.
stores in canaries
Shopping in the Canary Islands – one of the main retail chains on the islands and my favorite.

Key points to know about markets and stores in the Canaries:

  • In general, the Canary Islands are for early birds. All shops here open early and close early. Most shops are already open by 7-8 am, and definitely everything is open by 9 am.
  • Keep in mind that each island in the archipelago has its own administration and management. And the same stores of one retail chain on different islands operate completely differently.
  • Often Sunday is a day off or has shortened working hours.

Important to know:

But even though the Canaries are Spain, and in Spain, there is widespread siesta in the retail sector, when many stores may close for 2-3 hours during the day. Siesta is not as popular and widespread in the Canaries.
open hours mercadona canaries
An example of the operating hours of a large Spar store: Monday – Saturday 8:30 am – 8:30 pm. Interestingly, this is the only store in the area, and by 9 pm, you won’t be able to buy anything, and Sunday is a day off. This is a common practice.

Stores mostly operate early in the morning, but by 8 pm, most of them are closed. Always check the current schedule of your chosen store for groceries, especially on weekends.

Taxes on Goods in the Canaries

And now the most interesting part – about taxes. You’ll understand why everything is so inexpensive here. Here are the main points:

  • There is no VAT in the Canary Islands, which in mainland Spain is 21%. And there, this 21% is added to the price of absolutely any item. Yes, there are nuances, and not all goods have a VAT rate of 21%, but we are talking about the overall picture here.
  • Instead of VAT, the Canary Islands have IGIC – the General Indirect Tax of the Canary Islands. And it’s only 7%.
  • There is also a corporate tax that businesses pay, which in Spain is 30%, while in the Canary Islands, it’s 4%.

It’s precisely because of these taxes that goods in the main consumer basket are among the cheapest in Europe on the islands. Although the delivery of all goods to the Canaries is not cheap due to their remoteness from the EU.

Tax Free Refund on Tenerife and the Canary Islands

Now, here’s where it gets interesting, and judging by the number of questions from tourists, many don’t understand the significance of Tax Free refunds and the process itself. Let me break it down for you.

tax free refund tenerife
This is how a Tax Free refund office at the airport typically looks like

What is Tax Free:

It’s a European system for refunding VAT (Value Added Tax) in cases where a non-resident of any EU country purchases goods and takes them outside the customs zone of the European Union. Then they have the option to reclaim the VAT for the purchased goods. Here’s an example: I’m a citizen of Norway, I bought an iPhone for 1000 euros in Germany, brought it home to Oslo, and got back the VAT, which in Germany is 20% (for example), which amounts to a whopping 200 euros. We’ll skip the intricacies of the refund process for now, but that’s the basic logic.

What are the peculiarities of Tax Free refunds in the Canary Islands, and what does the procedure look like:

  • The tax in the islands is IGIC – General Indirect Tax of the Canary Archipelago, which is 7%. For small purchases, there’s absolutely no point in getting it refunded, as you’ll spend more time than it’s worth.
  • Only non-EU residents can claim Tax Free refunds: for example, Norwegians, Swiss citizens.
  • You must depart from the Canary Islands on a flight outside the EU. For example, if you’re flying from the Canaries to Barcelona, Milan, and then “overland” home, you won’t get a Tax Free refund. Here’s how to get to the Canaries today, optimal routes.
  • When purchasing an item at a store, you need to ask for a Tax Free refund form. It’s important: not all stores provide it, sometimes there’s a minimum purchase amount, for example, 1000 euros. If the store offers Tax Free refunds, there’s usually a blue sticker with the coveted words at the entrance.
  • You need to stamp this form at the VAT REFUND or TAX FREE REFUND office at the departure airport. An employee will make a copy, check your bank details, and then pass all the information to the Canary Islands Ministry of Finance, who then inform the store. The store refunds the VAT to your card within 15-30 days instead of paying it to the budget. And the money goes back to your card.
tax free refund canaries
If the store offers VAT refunds, there will be such a sticker at the entrance.

Good to know:

They may also not refund the full amount and deduct a commission, so you’ll receive not 7% of the sum, but around 5%. Therefore, I’ll repeat, it’s only beneficial for large purchases.

I also recommend checking in advance if there’s a VAT REFUND office (there are 8 of them in the Canaries) at the airport you’re departing from. Because it’s not available everywhere.

In conclusion: shopping in the Canary Islands is a thing, and you can count on it. Yes, it’s not a fashion capital like Milan, but here in the capitals of Tenerife and Gran Canaria, there are stores with all the global brands. I can’t say that iPhones or luxury items are cheaper here than in Europe, but the prices are definitely at the lower end for Europe. Whether to claim Tax Free refunds or not is a personal choice. But most tourists flying to Europe don’t qualify for the VAT refund program.

Happy shopping to you!

Useful links to help you plan your dream trip to Canary Islands:

  • Car Rental: LocalRent or DiscoverCars – the most popular car rental platforms.

  • Accommodation:
    • Trip.com – the largest accommodation booking platform.

    • or TripAdvisor – to compare prices among other platforms and choose the best one.

  • Budget-friendly vacation packages to Spain and Canary Islands: CheapOair.

  • Tours and activities: GetYourGuide or Viator – hundreds of offers, whales and dolphins, entrance tickets with discounts.

  • eSIM and internet: Airalo.

  • Flights: WayAway compares prices among dozens of companies.

  • Travel Insurance: EKTA.