| Money &
Taxes
Making the most of your holiday euros
Some useful tips for managing your holiday budget on La Palma and how to get
a tax rebate when you get back home.
What currency do I need? - Up
The official currency in Spain is the EURO (€) .
Visit the European
Central Bank to get the official exchange rates with
other non-European currencies (please note that banks and
financial agencies may apply comissions on top of these
rates).
What other means of payment may I use?
- Up
- Credit cards : Valid in most shops, restaurants and
hotels.
- Traveller's cheques : These are usually accepted in
tourist establishments, although they may also be cashed
in banks and financial institutions throughout the island.
Should I tip? - Up
Service charges are included in all La Palma shops.
However, tipping is normal in bars, restaurants, hotels
and taxis. It depends on the price and the generosity of
the customer. However, the norm is between about 5 and
10% of the total price.
How can I get a refund for
the taxes I pay? - Up
La Palma , like the rest of the Canary Islands , enjoys
a special tax regime . Taxes are lower here in order to
meet the supply needs of the island. So here you will pay
an average of 5% for IGIC tax, as opposed to the average
of 16% for VAT tax in the rest of Spain . That this
is why it is almost never profitable to apply for a tax
rebate .
However, if you wish to do so, you should consult article
9 of Decree
182/1992 of the 15th of December, which includes the
regulations for IGIC tax payment, collection and inspection.
Residents of the Spanish mainland, Balearic islands, Ceuta
or Melilla should also consult the Ruling
of the 9th of August 1993 and the restrictions established
by the Regional Ministry of Economy and Finance, which establishes
a minimum spending limit of 450 euros for reclaiming taxes.
The necessary form, which should be accompanied by some specific
and necessary documents, can be found here [regional
government website, in Spanish].
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