Tax withheld (retenciones) and account deposits (ingresos a cuenta)
We inform you of the consequences of BREXIT on withholdings and tax payments
The third paragraph of Article 128(1), third subparagraph of LIS states:
“Similarly, insurance companies registered in another member State of the European Economic Area and operating in Spain under the freedom of service provision regime, the insurance company is required to perform withholdings and payments on account in respect of the operations they carry out in Spain.”
Therefore, insurance companies domiciled in another Member State of the EEA that operate in Spain under the freedom to provide services are obliged to withhold with regard to the transactions they carry out in Spain.
From 1 January 2021 onwards, British entities will no longer be obliged to withhold tax under this heading (they may be obliged to withhold tax if they operate in Spain through a permanent establishment).