Iago was born in Galicia in the north-west of Spain. At the age of seventeen, he found a classical guitar at home and began to play. He has since performed in multiple bands, recording and touring across Spain and the UK: showcasing his immense talent via styles including gypsy jazz, blues rock, country, Dixieland Swing, Tex-Mex, pop and folk.

In 2014, Iago moved to London in search of new avenues, challenges and projects to develop his career. There, he joined bands including JFK Blue and The Boo-Hoos, before forming ColorColour (formally Deep Blue Sea), with which he has recorded and toured two albums.

Since 2018, Iago has been developing his career as a solo fingerstyle guitarist, inspired by the likes of Merle Travis, Chet Atkins and Tommy Emmanuel. In 2019, he recorded his first solo album, A Sunset Wine. In 2020, he is launching his second album entitled, simply, Iago Banet. One man with his guitar. The album features seven original compositions, and two special arrangements: A traditional Galician folk song Muiñeira de Chantada, and a Van Morrison classic, Moondance.

Iago has recently launched a live album/video performance, filmed without an audience in late 2020, in which he shares new songs which will form part of his next studio album.