Non-admitted insurance: Permitted under the terms of the EU’s Freedom of Services Directive; otherwise, non-admitted insurance is generally prohibited.

Premium tax paid by insured: As from 1 January 1997, 4%.

Regulator: The insurance industry is regulated by the Director General of Insurance, an agency of the Ministry of Economy and Finance.

Overview: The Spanish government’s budget fell into deficit in 2008 and will likely deteriorate as the administration attempts to stimulate the economy during the current recession.

Overall risk rating: low