In terms of Autonomous Community financing, Spain has two models: the common system and the autonomous system.
In turn, within the common system, the Canary Islands has a specific economic and tax system due to historical and geographical reasons, that has been adapted, which has been regulated taking into account the European Union's provisions regarding ultraperipheral regions.
Ceuta and Melilla are two cities that participate in autonomous financing in accordance with their Statutes of Autonomy and also the local tax offices' financing system. They also have a special indirect tax system, by virtue of which they collect Production, Services and Import Tax, instead of VAT.
The rest of the resources that these communities have should be added together with the resources that the financing system provides the Autonomous Communities: own taxes, transfers from the National Budget, European Union funds, etc. Similarly, the Autonomous Communities can obtain financing through indebtedness under the terms established by current law.
Articles 156 to 158 of the Spanish Constitution refer to the Funding System of the Autonomous Communities. Similarly, it recognises the particularities of "foral" (Navarra) territories and the Canary islands.
Article 156 (PDF approx. 66.12 KB) establishes the principles of the system: financial autonomy, coordination and solidarity.
Article 157(PDF approx. 71.81 KB) lists the resources of the Autonomous Communities and refers their deregulation to an Organic Law(PDF approx. 252.78 KB).
Article 158 (PDF approx. 66.89 KB)establishes the instruments for implementing the principle of solidarity.
Moreover, the First Additional Disposition (PDF approx. 56.37 KB)refers to the "foral" territories and the Third Additional Disposition (PDF approx. 54.94 KB)to modifications in the economic and fiscal system of the Canary Islands.
Finally, the fifth Transitory Disposition (PDF approx. 57.18 KB) made it possible to constitute Ceuta and Melilla as cities with a Statute of Autonomy.
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