Are you interested about knowing how the taxation of Christmas lottery prizes works in Spain? Welex, your tax advisor in Marbella is pleased to write a few lines on this subject.

The well-known “Lotería de Navidad” (Christmas lottery), one of the most popular lotteries held in Spain, is actually called “El sorteo extraordinario de Navidad” (The Special Christmas Draw). Special tax on lottery prizes in Spain

Brief history of the lottery in Spain

The lottery arrived in Spain thanks to Charles III who imported it from a tradition in Italy. It was very similar to what is now called the Primitive Lottery.

The first lottery draw took place in December 1763 in Spain although the institution of the national lottery was created in 1811.

Taxation of lottery prizes in Spain

The right to collect Christmas lottery prizes expires after 3 months and in general terms, lottery prizes are subject to Non-Resident Income Tax in Spain.

Lottery prizes were not subject to taxation before 01.01.2013. The exempt amount will be 40,000 euros for prizes held from January 1, 2020.

It should also be noted that the tax is levied independently on each of the prizes won.

20% is the percentage of withholding that, in per cent, coincides with the tax rate.

Taxpayers who have won prizes will be obliged to file a declaration for this special tax filing form 136.

History of taxation of prizes in Spain

In recent years, taxes on lottery and gambling prizes have been altered in various ways:

  • Until 2013 they were exempt.
  • The amount exempted was 2,500 euros in prizes derived from games held before July 5, 2018.
  • As of July 5, 2018, inclusive, the exemption amount will be 10,000 euros.
  • In 2019 the exemption is 20,000 euros.

The special tax on lottery prizes in Spain today

The exemption increases to the first 40,000 euros on prizes to be held from January 1st, 2020.

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