IPS: Taxation of insurance

From 6% to 8%

In 2021 the Spanish government has decided to increase the tax they charge on every insurance policy taken out from the 6% to the 8%. This is something that does not happen quickly and in recent years the government has not increased it. But it is not surprising.

The Corona crisis damaged the Spanish economy last year, but will continue to do so for some time. Spain is one of the countries that has been hardest hit by this crisis in Europe. The government has distributed several aid packages last year and these financial concessions now have to come back from somewhere. The insurance sector is one of these sectors that will be taxed extra.

The increase is therefore a tax that has nothing to do with your premium . This additional cost is exclusively for the government and is beyond the companies' control. An annual adjustment of consumer prices is a fixed fact which causes products, including insurances, to increase slightly each year (consumer price index). But an extra 2% of taxes is obviously felt.

We hope the government will stick to this one-time increase and not raise taxes on all prices of services and products every year. Everything will depend on how the economy will recover.

At Segurantis we always try to correctly reflect our services price quality. We try to find out for our clients every year how we can offer them the best price guarantees with the highest service.