Who pays the €16.000 per minute that Marc Anthony charged for the disastrous Las Palmas carnival last February? The south of the island. A detailed analysis of the Canary Islands' budgets for 2026 reveals a surprising economic geography in Gran Canaria. While the island's tourism engine roars in the south, the tax revenue is overwhelmingly captured by the capital in the north. This is not an accident of nature, but a consequence of corporate centralization that creates a black hole effect for tax collection in tourism-dependent municipalities like San Bartolomé de Tirajana.
Data from the 'Settlement of the consolidated budget of Local Entities' reported by La Gaceta de Gran Canaria They explain that Tirajana receives a settlement of 1,5 million euros, less than Artenara. The distribution of this revenue is profoundly unequal. Las Palmas de Gran Canaria, the island's administrative and commercial heart, is expected to collect a staggering 89,5 million euros, almost a quarter of the island's total indirect tax revenue. This figure dwarfs the contributions of other municipalities. Where does this money come from? Mostly from Maspalomas. For example, the Brazilian cement company in Santa Águeda, which operates under the Ceisa brand and insists its product is "Made in the Canary Islands," pays its IGIC (Canary Islands General Indirect Tax) in Las Palmas, but the problem lies with the residents and the destination.
This shows that the total revenue budgeted by all the municipalities of Gran Canaria for "other indirect taxes," which mainly encompass the Canary Islands General Indirect Tax (IGIC), amounts to a substantial €374,4 million for the 2025 fiscal year. This figure represents the lifeblood of local government finances, funding essential services and infrastructure. Can anyone believe that Aguas de Teror or Firgas would be profitable without the south of Gran Canaria?
The distribution of this revenue is profoundly unequal. The capital, Las Palmas de Gran Canaria, leads the contribution with €89.533.138,39, followed by Santa Lucía de Tirajana with €18,4 million, Mogán with €7,1 million, Agüimes with €6,7 million, Gáldar with €6.428.000, Teror with €3.875.045,32, Moya with €2.812.387,41, Agaete with €2.350.513,70, Tejeda with €1.688.811,85, San Bartolomé de Tirajana with €1.500.000, Artenara with €1.468.431,79, Telde with €589.702,23, Ingenio with €215.000, Arucas with €150.000, Santa Brígida with 100.000 euros, Valsequillo de Gran Canaria with 74.699,09 euros, La Aldea de San Nicolás with 50.400 euros, Firgas and Santa María de Guía de Gran Canaria both with 50.000 euros, Vega de San Mateo with 15.000 euros and Valleseco closing the list with 6.500 euros.
The discrepancy becomes evident when compared to the south of the island, the true epicenter of Gran Canaria's tourism industry. San Bartolomé de Tirajana, home to the iconic Maspalomas Dunes and its resorts, has a projected indirect tax revenue of just €1,5 million. This puts it on par with small, inland, and largely agricultural municipalities like Artenara (€1,4 million).
This tax investment is a direct result of where large tourism corporations choose to establish their headquarters. A prime example is Lopesan Hotels, the largest single private taxpayer on the island. Although the vast majority of its operations, assets, and revenue generation occur in southern Gran Canaria, its nerve center is located on Concepción Arenal Street in Las Palmas de Gran Canaria. Consequently, the IGIC (Canary Islands General Indirect Tax) paid on the company's extensive economic activity flows into the municipal coffers of the capital, not those of the municipality that hosts the tourists.
The data also highlight a smaller, but still significant, contrast between the two main tourist areas in the south. Mogán, another key tourist center with a significant number of hotels and resorts, is projected to collect €7,1 million in indirect taxes. This is almost five times the amount budgeted for San Bartolomé de Tirajana. The likely reason for this difference lies in the tourism structure of each municipality. San Bartolomé de Tirajana is more mature, with a higher proportion of older, pre-existing infrastructure, where much of the initial IGIC (Canary Islands General Indirect Tax) was captured decades ago. Mogán, with its newer developments and ongoing investment, may be capturing more current IGIC related to consumption and services, closer to the point of sale.
Historically, the Canary Islands Government has concealed IGIC (Canary Islands General Indirect Tax) revenue by island to avoid unfavorable comparisons with Gran Canaria, where the sheer volume of economic activity can overshadow smaller islands like La Gomera or El Hierro. However, this data at the municipal level lifts the veil, revealing a stark internal disparity. It paints a picture of a capital city that benefits disproportionately from the island's main industry, while municipalities at the forefront of providing tourist services are left with a fiscal deficit, struggling to capture the tax revenue their economic activity should legitimately generate. This unbalanced system raises fundamental questions about the fairness and long-term sustainability of funding for Gran Canaria's key tourist municipalities.
