How to Avoid Errors in Fire Brigade Charge Reporting in Spain

Hector Fernandez
May 11, 2021

The Spanish tax system is one of the most complex in Europe. This can bring a real challenge to insurance companies writing business in Spain or for those that want to start writing business in the country.

As explained in previous blogs, Spain has various taxes and surcharges on insurance premiums with different rates and several reports which must be declared. In this blog, we’ll focus on the Fire Brigade Charge (FBC).

Fire Brigade Charge

FBC is one of the surcharges that insurance companies should file and pay in Spain. Its complexity lies in the fact that the surcharge is the full responsibility of the local governments (councils, provincial councils, etc.).

According to local legislation, municipalities with more than twenty thousand inhabitants are obliged to provide the fire extinguishing service themselves or by association. There are more than 380 municipalities that can create their own FBC municipal taxes. In addition, there are 41 provincial councils that provide support to those small municipalities.

Annual report: Who has the obligation to file the report?

To be compliant with the FBC, insurance entities must file reports in these cases:

  • Entities authorised to write class 8 and 9 (Fire & Natural Forces and other damages to Property) in Spain need to report the policies subscribed during the last year.
  • An entity that has ceased its activity in Spain and will no longer write insurance business in this territory must declare the policies insured for the part of the year that the entity was active. This applies even if the entity will not be active or will not continue covering risk in Spain.

Important points about Spain’s Fire Brigade Charge

As explained previously, the FBC is a municipality charge. It’s extremely important to identify the location of the risk insured, which is possible through the use of postal codes. It’s important to include the correct post code to ensure a successful submission. This is for both the municipalities and to be compliant with the FBC report.

In the report the class of business must be split by fire and natural forces and other damages to property as follows:

  • Multi risk homeowners
  • Fire
  • Multi risk shop
  • Multi risk industry
  • Other multi risk policies

It’s also important to correctly classify the fire and multi risk policies. Levies can vary substantially if the class of business is wrongly identified, from 5% to 2.5%.

As explained, businesses need to submit the FBC report annually. The annual FBC report requires collecting information regularly for use. This will avoid delays in collecting the necessary information.

Take Action

Talk to our team to find out how we can help you stay compliant in Spain or read our overview about IPT in Spain.

Sign up for Email Updates

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


Hector Fernandez

Hector, a principal compliance services representative, joined the country team at Sovos in 2019 and specializes in Spanish insurance premium taxes. He has eight years’ experience working in Spain (Broseta Abogados) and Dublin (HERTZ) in tax departments dealing with direct and indirect taxes and has completed a Degree in Law and a Masters in International and Community Taxes. He is a Member of the Bar association Law Madrid (ICAM).
Share this post

North America VAT & Fiscal Reporting
May 21, 2024
What’s Happening Next with VAT in the Digital Age (ViDA)

It was widely expected that when the finance ministers of the EU convened last week that we’d receive news of a political agreement on the VAT in the Digital Age (ViDA) proposal. Unfortunately, due to the objections of one member state around the platform rules, this did not happen. Now, the official move forward date […]

E-Invoicing Compliance North America
May 16, 2024
Embrace E-Invoicing for Better Business Decisions

There is a considerable shift happening across the globe right now as governments and tax authorities are embracing e-invoicing as a method of ensuring the accuracy of transactional data. An $11.2 billion dollar market in 2022, e-invoicing is expected to reach $35.9 billion by 2028. [source: ResearchAndMarkets] There is a simple reason for this. Governments […]

E-Invoicing Compliance North America
May 14, 2024
The Truth is in the Transaction: How the E-Invoice Ties the Global Economy Together

Let’s begin with a basic premise. When it comes to tax compliance, you may trust your data, however, the government does not. Businesses may aspire to develop perfect visibility into business operations, but good visibility will often be good enough for meeting business objectives. Data insight is a relative rather than an absolute goal: it […]

North America Sales & Use Tax
May 23, 2024
Streamlined Sales Tax (SST) Attempts to Simplify Compliance for Digital Sellers

Accurate sales tax determination is historically predicated on the seller knowing the precise street address of their customer. Since sales tax jurisdictional boundaries do not necessarily correspond to governmental boundaries (e.g., state, county, city) and don’t tightly align with zip codes, the only way to apply correct local rates is by knowing the pinpoint location […]

North America ShipCompliant
May 21, 2024
19th Annual Wine Summit: Highlights and Takeaways

Over May 8-9, Sovos ShipCompliant hosted its 19th annual Wine Summit. For two days, wine makers, managers, consultants, attorneys and other industry members gathered at the Napa Valley Marriott to hear from a cavalcade of experts on regulatory and marketing advice and updates related to the wine industry.  19th annual Wine Summit Recap from Presenters […]

North America ShipCompliant
May 16, 2024
Alcohol Labels: 3 Things You Need to Know

Often, the first thing you notice about a beverage alcohol product is the label. The typeface, imagery and colors used were all meticulously chosen to say something about the product and brand. But it takes more than an eye for graphic design to create a beverage alcohol label. There are several regulatory concerns at play […]