The Canary Islands do belong to the EU. They are, however, among nine territories classed as the “outermost regions” (OMR). EU VAT and customs regulations therefore don’t apply to the Canary Islands. A local tax called IGIC still applies, but the general rate for this is only 7%. Although different IGIC rates apply to items, almost all products are cheaper in the Canary Islands. Holidaymakers therefore see their money go further here.  Do bear in mind, though, that limits may apply regarding the value of goods you bring into your own country. In most EU countries, the limit is EUR 430 per person. In the UK, it’s £390. When these tax-free allowances are exceeded, you may be liable for customs duty and import VAT on the entire value, rather than just the amount that exceeds this allowance.