The world’s main reinsurance markets typically provide their services on a cross-border basis for Latin American cedants, given the limited reinsurance capacity within the region compared to the demand from insurance companies.
Consequently, these cross-border transactions create taxation challenges for the local governments where the cedants are domiciled, as foreign reinsurers collect premiums while being located in other jurisdictions.
As a result, most Latin American tax authorities have implemented withholding tax rates on outbound reinsurance premiums paid by local cedants to foreign reinsurers.
This updated 2025 report provides a comparison of the withholding tax rates applicable in the region and includes more jurisdictions such as Dominican Republic, Guatemala, Honduras, El Salvador, Nicaragua and Puerto Rico.
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