IPT Spain

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Find out more about IPT.

Insurance Premium tax in Spain is complex as a number of the taxes are organised on a regional level.

Spain Insurance Premium Tax

The Spanish law for insurance premium tax is contained within Acts laid down by the Ministry of Finance and Taxation.

Basis of Spanish IPT Calculation

The basis of the IPT calculation is the total amount of the premium payable by the insured, excluding fund for the insurance of extraordinary risks and fire brigadee charges.  The tax must be shown in addition to the premium.

Spanish IPT Liability

The insurer is liable for the tax calculation and payment.  EEA insurers, operating under the Freedom of Service regime, are required to appoint a fiscal representative in Spain.

Spanish IPT Rates

The principal Spanish Insurance Premium Tax rate is 6% and this is applied to all classes except the following, which are exempt:

  • Life 
  • Group pensions 
  • Health 
  • Agricultural risks 
  • Goods and passengers in international transit 
  • Aviation and marine hull 
  • Export credit 
  • Suretyship 
  • Reinsurance

Spanish Parafiscal Charges

In addition to Spanish IPT, there are also a number of additional insurance levies and charges, including:

  • Fire Brigade Charge 
  • Fund for the Winding Up of Insurance Companies 
  • National Guarantee Fund (NGF) 
  • Fund for the Insurance of Extraordinary Risks (Consorcio) 
  • Motor Liability Contribution 

A number of the above charges are levied on a regional basis.

Payments of Spanish IPT & Parafiscal Charges

Spanish IPT is payable on a monthly basis.  Most of the Insurance Parafiscal Charges and Levies are due on a monthly basis too.

Find out more about IPT.