Tenerife (and all the other Canary Islands) are non-EU, which means although cigs, booze etc are much cheaper than mainland Spain, you can only bring home a very small amount (200 cigs, 1 litre of spirits etc)
As Cyberspacekadette says, regarding how much duty free you can bring back then no the Canaries are not part of the EU, for everything else they are
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