Withholdings and payment on account
The third paragraph of section 1 of article 128 of the LIS establishes:
“Likewise, insurance entities domiciled in another Member State of the European Economic Area that operate in Spain under the free provision of services regime will be required to make withholding or deposit on account, in relation to operations carried out in Spain.”
Therefore, insurance entities domiciled in another Member State of the EEA that operate in Spain under the freedom to provide services regime are subject to withholding in relation to the operations they carry out in Spain.
As of January 1, 2021, the event determining the condition of subject obliged to withhold for this concept does not arise in British entities (they may be subjects obliged to withhold if they operate in Spain through a permanent establishment).