Today at Taxmind we’re discussing insurance for expatriates. We’re doing so because we regard it as a key element of tax and general security in every sense. Moving to a new country entails obligations, but also situations where, in delicate circumstances, being insured protects us from potential issues. We’re talking about health-related situations, civil matters or even criminal proceedings. In these contexts, expat insurance exists precisely to provide cover during those moments of uncertainty and confusion whilst living abroad.
At Taxmind, we have been advising and representing expats in Barcelona and Catalonia for years, and in light of the growing concerns raised by those settling in our country, we wanted to provide reliable and up-to-date information on the expat insurance policies available on the market, focusing on the situations where it is advisable to take them out.
It is important to bear in mind that, in some cases, taking out such cover is actually compulsory if you are going to live and work in Barcelona or elsewhere in the region. We’ll look at which ones.
What is expatriate insurance and how does it differ from ‘standard’ insurance?
Expat insurance is a policy designed for people who are living outside their country of origin, either temporarily or for an extended period. The best-known form is international health insurance, but the term covers any insurance tailored to the situation of someone living between two countries: multilingual support, cover that ‘travels’ with you, 24/7 assistance and, often, protection both in Spain and in your home country when you return to visit.
Compared to purely domestic insurance, it differs in three key ways:
- Geographical scope: it covers you in Spain and, depending on the policy, also in your home country or worldwide.
- Language and support: claims handling and telephone support in your own language, which is crucial during the first few months.
- Adaptation to your status: it covers situations typical of expatriates (visas, company transfers, work-related stays, repatriation).
Not all expats need an international policy: for many, a good local Spanish insurance policy is sufficient. We’ll look at how to decide below.
Why take out insurance when moving to Spain?
Given that access to public healthcare is neither immediate nor automatic in all situations, expat health insurance is almost mandatory for every expat. It depends on whether you’re paying social security contributions, your registration with the local council and the type of residence permit you hold.
Some visas require it by law as a condition for granting you residency.
Insurance from your home country may cease to cover you when you move your usual place of residence to Spain. If you are covered by one of the expat insurance policies, this would no longer be a problem.
The peace of mind provided by insurance during the first few months whilst settling into a new country is also very important, as this is the period of greatest uncertainty (looking for a flat, registering as self-employed, dealing with administrative procedures, etc.) – precisely when you need to be protected.
Types of international insurance for expats in Spain
Health insurance isn’t the only type of cover available to expatriates. Let’s take a look at the policies most commonly taken out by expatriates settling in Spain, listed from most to least common.
1️⃣ International medical or health insurance
The most popular option. It covers medical care, hospitalisation, A&E and specialist consultations and, depending on the plan, dental care, maternity cover, mental health or medical repatriation. It is essential if you are not yet paying into the Spanish Social Security system or if your visa requires private cover. If you need it for a residence permit application, look for policies with no co-payments and no waiting periods.
2️⃣ Third-party liability insurance
This covers any damage you may unintentionally cause to third parties: a water leak affecting a neighbour, damage caused by your pet, etc. Many home insurance policies already include this, but it’s worth checking the cover limits.
3️⃣ Home or tenant’s insurance
If you’re renting, the landlord’s home insurance doesn’t cover your belongings. Contents or tenants’ insurance protects your possessions against theft, fire or water damage and includes civil liability cover. In high-demand areas such as Barcelona, some landlords require this as part of the tenancy agreement.
4️⃣ Life insurance
It provides peace of mind for your family if you have a mortgage, children or dependants. For expats with family members living in different countries, there are international policies that pay out the claim in the country of your choice.
5️⃣ Repatriation and funeral insurance
This covers the repatriation of remains to your country of origin and associated costs in the event of death. It is one of the most highly valued forms of cover for those living far from their families and is usually included in international health or travel insurance. At Taxmind, we generally recommend it.
6️⃣ Travel and international mobility insurance
Useful during the first few months or if you travel frequently between Spain and your country of origin. It covers medical assistance whilst travelling, cancellations, lost luggage and medical evacuation. It is not a substitute for residential health insurance, but is ideal for the ‘transition period’ until you have sorted out your permanent cover.
7️⃣ Car insurance
Compulsory in Spain if you own a vehicle. Some insurers offer specific terms for expats and take your driving record abroad (no-claims bonus) into account so that you don’t have to start from scratch.
8️⃣ Professional liability insurance (self-employed)
If you register as a foreign self-employed person, professional liability insurance covers claims arising from your professional activity. In sectors such as consultancy, healthcare or technical services, it is practically essential.
Examples of common situations covered by expat insurance
The types of expats in Barcelona and Catalonia – where Taxmind mainly operates – are varied. There are different profiles because Barcelona attracts a great deal of foreign investment, diverse professional profiles and, in general, citizens from other countries who wish to settle in our country either temporarily or permanently.
To give you some real-life examples and make things clearer, here are the most common expat profiles and, when it comes to expat insurance, the cover that usually best suits each one:
New arrival on an non-lucrative visa
An American pensioner needs private health insurance with no co-payments or waiting periods in order to apply for a visa before travelling to Spain.
Foreign self-employed person who has just registered under the scheme
An Argentine designer is already paying Social Security contributions, but takes out private insurance to avoid waiting times and professional liability cover to protect himself in dealings with his clients.
Family reunited with children on an visa
A couple are arriving with two children and are taking out family health insurance and tenants’ insurance, as the landlord requires this to sign the tenancy agreement.
Digital nomad working remotely
An Italian professional on a digital nomad visa holds international insurance that also covers him when travelling for work.
Employee posted abroad by their company
The company takes out group expatriate insurance for him, but he adds international life insurance to cover the mortgage he still has in his home country.
Transitional period before receiving the health card
Whilst applying for the TIE and registering with the local council, they use travel or temporary health insurance to ensure they are not left without cover for a single day.
It is important to understand that specific requirements vary and depend on the expat’s country of origin and their personal circumstances. You should therefore always check the current regulations before taking out expat insurance, or contact us to review your case if you wish.
International insurance vs. local Spanish insurance
Both options are valid; the best one depends on the individual’s plans.
What are the key differences? There are several, as you’ll see below:
| Criteria | International insurance | Local Spanish insurance |
|---|---|---|
| Geographical cover | Spain + country of origin or worldwide | Spain only |
| Language of service | Multilingual | Spanish (some in English) |
| Approximate price | Tends to be higher | More affordable |
| Ideal for | Frequent travel, families living in several countries, the first few months | Stable, long-term residence |
| Visa procedures | Valid if you meet the requirements | Valid if you are an authorised entity in Spain |
Recommendation from Taxmind
If the plan is to stay for many years and pay into the social security system, local insurance is usually sufficient and cheaper; if you’re going to be moving between countries or the expat has only just arrived, international cover offers greater flexibility.
Key factors for choosing the best insurance for expatriates
As we’ve been saying, every individual’s circumstances – and therefore their needs – are different, but at Taxmind we’re clear on the following points to help you choose the expat insurance that best suits you:
- The destination and your mobility: how much you’ll be travelling and whether you need cover outside Spain.
- Excesses and waiting periods: these are crucial if the insurance is required for a visa application.
- Geographical scope: check whether we are covered in our home country during visits.
- Medical network in Barcelona and Catalonia: a network of nearby clinics and hospitals where our language is spoken.
- Language of customer service and 24/7 support: particularly useful during the first few months.
- Optional cover: dental, maternity, mental health, repatriation… depending on your specific needs.
- Authorised insurer: ensure the insurer is authorised by the DGSFP to operate in Spain, particularly if the insurance is for your residence.
The tax angle: insurance, the self-employed and the Beckham Law
This is where a tax consultancy like ours, Taxmind, helps to understand the client’s situation and coherently plan the purchase of insurance policies that not only protect you but can also reduce your final tax bill. Let’s take a look.
Self-employed individuals
You can claim your private health insurance premiums as a deduction on your personal income tax up to €500 per year per person (the expat, their spouse and children under 25 living with them); the limit rises to €1,500 per person with a disability.
Employees
If your employer pays for your health insurance, this may be treated as tax-exempt remuneration in kind up to the same limit of €500 per person.
If you are taxed under the special regime for expatriates, the tax rules change (a flat rate of 24 per cent on employment income up to €600,000); it is advisable to plan which insurance policies to take out and in whose name.
Some life-savings or unit-linked insurance policies taken out outside Spain may give rise to reporting obligations.
As we always say, every case is different. At Taxmind, we’d be delighted to help you integrate your expatriate insurance policies into your tax planning so you don’t end up paying more than you need to.
Barcelona and Catalonia: what you need to know
With regard to the public health service, in Catalonia this is managed by CatSalut. To access it, you generally need to be registered on the local council’s register and meet certain residence requirements; until then, private insurance fills the gap. As is well known, Barcelona is home to numerous private clinics and hospitals offering care in English and other languages, which makes private insurance very practical during the first few months.
When it comes to registering on the council’s register, you must enrol on the local council’s register (Barcelona, Girona, Pineda de Mar, etc.) as the first step in many administrative procedures, including obtaining your individual health card (TSI).
Finally, there is the matter of renting. Due to the high demand for housing in Barcelona, tenant insurance is increasingly becoming a requirement for certain types of tenants to be accepted as tenants.
As we know that all this paperwork and the process of gathering information on expatriate insurance can be very overwhelming for new residents, please be assured that at Taxmind, as specialists in taxation for expatriates and foreign nationals in Barcelona, Girona and Pineda de Mar, we take care of these formalities and all the necessary procedures. We plan for your arrival — the Beckham Act, registering as self-employed, Form 720, tax returns for foreign residents and non-residents — and ensure that these insurance policies fit within each client’s tax situation.
Frequently asked questions about insurance for expatriates
There’s no better way to summarise the key points about expat insurance than by answering the most important questions to help you understand it:
☑️ Is it compulsory to have insurance to live in Spain as a foreigner?
It depends on the individual’s circumstances. If you are working and paying Social Security contributions, you have access to the public healthcare system. However, several visa categories (non-lucrative residence, digital nomad, study) require private health insurance as a condition for granting residence.
☑️ What sort of insurance do I need for a non-profit-making residence visa?
Private health insurance with comprehensive cover in Spain, with no co-payments or waiting periods, taken out with a provider authorised to operate in the country. This is one of the standard requirements for obtaining the visa.
☑️ Can I use the public healthcare system as soon as I arrive in Catalonia?
Not always straight away. You usually need to be registered on the local council’s register and meet certain residence requirements. Until you gain access to CatSalut, private insurance will keep you covered.
☑️ How much does health insurance for expats in Spain cost?
It varies greatly depending on your age, the cover you choose and the geographical area. As a guide, local Spanish plans are usually cheaper than international ones. It’s best to compare several policies before deciding.
☑️ Does my home country’s insurance cover me in Spain?
Sometimes only for emergencies or for a limited period, and it may cease to apply once you transfer your habitual residence. Check the terms and conditions of your policy before relying on it for life in Spain.
☑️ Can self-employed people claim tax relief on health insurance?
Yes. A self-employed person can claim tax relief on their private health insurance premiums up to €500 per year per person (themselves, their spouse and children under 25 living with them), and up to €1,500 per person with a disability.
☑️ Do I need home contents insurance if I’m renting?
The landlord’s insurance does not cover the expat’s belongings. Tenant’s insurance protects your possessions and usually includes third-party liability; furthermore, in cities such as Barcelona, it is sometimes required by the tenancy agreement itself.
☑️ Should I opt for international or Spanish insurance?
International insurance is preferable if you move between countries, have family in various places or have just arrived. Local Spanish insurance is usually sufficient if you are going to be living there permanently and are already paying into the Social Security system.
☑️ What is repatriation and why is it important?
This is the cover that arranges for the transfer of remains to the country of origin and covers the associated costs in the event of death. It is one of the most highly valued forms of cover for those living far from their families.
☑️ Does taking out insurance affect my tax situation in Spain?
It can offer advantages, such as tax deductions for the self-employed or exemption from tax on benefits in kind for employees, and it’s worth planning for this, especially if you’re taxed under the Beckham Law. A tax consultancy such as Taxmind can help you make the most of these benefits.
Conclusions
Most of the expat insurance policies we have mentioned in this article are not compulsory, but as new citizens in an unfamiliar country, having them in place provides peace of mind and security when you need it most. Gaining a clear understanding of how they can affect an expat’s tax situation is another key factor to consider when thinking about taking out one of these policies.
At Taxmind, we support our clients in this and all other administrative, tax and accounting matters, so that they can focus their efforts on their professional and personal lives.
If you have any questions or queries on this matter, please leave us a comment or get in touch with the team. We’d be delighted to advise you.
