What Cross-border Insurers Need to Know About French, Spanish and Portugese IPT

Christophe Bourdaire
April 16, 2020

When operating across multiple regions, it’s challenging to stay abreast with every jurisdictions’ insurance premium tax (IPT) rates, particularities and exemptions. Country-specific filing and audit processes vary country to country too.

If you operate in Portugal, France or Spain, or are looking to expand your business into these European territories, we’ve compiled a quick guide covering key IPT developments in these countries.


The most significant announcement is delay related.

Portugal was set to switch to a new digital filing system for Stamp Duty declaration this year. This has now been officially delayed until at least 2021 due to the coronavirus pandemic.

This may be frustrating for some, as many organisations will have worked tirelessly on the run up to the original deadline, digitising operations and putting systems in place, however this postponement provides some welcome extra breathing room to validate changes and to make any additional improvements needed to processes.

When the new system is eventually introduced, taxpayers will be required to provide detailed information on a transactional basis in order to issue their Stamp Duty return. With this new requirement on the horizon, it’s clear the Portuguese tax authorities are looking to tighten up reporting by requesting more granular detail. Understanding and interpreting local tax rules can be challenging – ensure your data collection processes match the requirements.


France is one of the most significant IPT collectors in Europe, with a 15% increase between 2014 and 2018. These increases have been due to sickness and legal expenses insurance contracts, and an increase in the contribution to the Common Fund for Victims of Terrorism.

Elsewhere, The Fonds de Garantie introduced two new annual contributions for companies writing “Dommages Ouvrage” in France after many insurance companies writing construction insurance went bankrupt.

The first one is a 5% contribution that applies to the difference of “Dommages Ouvrage” premiums written over the last 10 years, for which set coefficients and previous year’s technical provisions deductions are applied. The second one is a contribution whose rate can range from 0% to 12% and that is calculated on the total “Dommages Ouvrage” premiums written during the previous year. Its aim is to cover the charges incurred by the Fonds de Garantie on its activities related to Dommages Ouvrage.


Spain recently introduced a new software system for all of its compulsory surcharges such as Extraordinary Risk contributions and Environmental Damage surcharges.

The Consorcio de Compensación de Seguros (CCS) requires insurers to report their policy information on a more granular level. Insurers must provide information at a transactional level on an ongoing monthly basis for all surcharges now. The change has had a significant impact on the insurance industry and it’s taken some time for insurers to become accustomed to the new level of detail.

Spain’s approach could be adopted by other European nations in the future so our team of regulatory analysis experts will be keeping a close eye on developments – it will be interesting to see what can be learned from this new approach.

IPT generally

The current global situation is affecting some IPT tax filings, but economic effects are still coming through and there could be further changes in a short space of time.

Our team of regional IPT experts ensure our software is always kept up-to-date with the latest regulations and changes so you can be confident that your tax reporting and filing is correct. We also have a live updates blog to keep you informed.

Sign up for Email Updates

Stay up to date with the latest tax and compliance updates that may impact your business.


Christophe Bourdaire

Senior Regulatory Specialist, Regulatory Analysis. Christophe joined Sovos FiscalReps in 2011 and has been managing the IPT compliance process for a portfolio of captives and French speaking clients. Based in France, he focuses on the development of the global IPT content and technology offering. Christophe completed a degree (certificate) in Journalism at Ecole Nouvelles in Nice, France. He is a native French speaker, and also speaks fluent Spanish.
Share This Post
Share on facebook
Share on twitter
Share on linkedin
Share on email

North America Sales & Use Tax
May 7, 2021
How to File Sales Tax as a Multi-Level Marketing (MLM) Business

Direct selling companies and multi-level marketing (MLM) businesses have numerous complexities to consider when it comes to sales tax calculation and reporting requirements. Along with an expansive physical nexus footprint, direct sellers must know how their products and services are taxed around the country. It’s a daunting task when facing it alone.  Where are you […]

E-Invoicing Compliance EMEA Italy VAT & Fiscal Reporting
May 6, 2021
Italy: Understanding the New E-Document Legislation Requirements

In September 2020, the Agency for Digital Italy (AGID) introduced new requirements for the creation and preservation of electronic documents, which will be enforced from 7 June 2021. This blog discusses the requirements and how they affect the issuance and storage of e-invoices. Electronic Documents in Italy The AGID is responsible for the Italian digital […]

North America Sales & Use Tax
May 6, 2021
What to Expect with New Sales Tax Software Implementation

Change is rarely easy, but when it comes to implementing new sales tax software it doesn’t have to be a constant struggle. Organizations want to know that the implementation process includes hands-on assistance and a timeline that makes sense – for all parties involved.  Our Sovos implementation is designed to deliver value quickly and to […]

North America Unclaimed Property
May 6, 2021
New York Unclaimed Property Self-Directed Compliance Program

Continuing the trend in 2021, New York unclaimed property recently introduced the NY Self-Directed Compliance Program  geared towards identifying both non-reporters and companies that reported in 2021, but failed to report property types expected to be seen. Due to negative economic impact resulting from COVID-19, Sovos’ consulting, reporting and regulatory teams have been preparing for […]

May 5, 2021
What’s on the horizon for Insurance Premium Tax in Europe?

Europe has seen relatively few changes to insurance premium tax (IPT) rates recently. The most notable recent change was the 33% increase in IPT rate in Spain (up from 6% to 8%) at the beginning of 2021. Brexit became official on 1 January 2021, following the end of the transition period. This means UK based […]