If you're one of the lucky winners of a prize this December 22nd, it won't all be celebration: the tax authorities also benefit. We'll explain what portion of the prize is tax-exempt, how much is withheld, and what to do if you share it.
Every year, the Christmas Lottery draw distributes millions of euros in prizes… and also represents a significant source of revenue for the Treasury. Since the entry into force of the Law 16/2012Prizes from State Lotteries and Betting (SELAE), ONCE or the Red Cross are subject to a special tax of 20%, although with certain exceptions.
What portion of the prize is tax-exempt?
At the moment, Prizes up to 40,000 euros are exempt from taxation. per share or share. This means you will only pay taxes if your prize exceeds that amount, and only on the portion that exceeds that threshold.
How much is paid to the tax authorities?
The tax rate is 20% on the amount exceeding €40,000.
For example:
- If you win 100.000 €You pay taxes on €60,000 → you will pay 12.000 € tax.
- You will finally get paid: 88.000 €.
This percentage withholds directly when collecting the prizeTherefore, the winner will not have to complete any additional tax procedures (except in exceptional circumstances).
What happens if the tenth share is shared?
In shared prizes (groups of friends, family, clubs, associations…), the The €40,000 exemption is distributed proportionally. among the participants. Whoever manages the prize collection must identify the winner to the Tax Agency. each beneficiary and their percentage of participationto avoid future problems.
It is very important to document these agreements and keep evidence (such as Bizums, transfers or written communications), especially if the prize is high.
Should I include it in my tax return?
No. If you are an IRPF taxpayer and the withholding for 20% has already been applied, You don't need to include the prize in your tax return.However, if you are a company or entity subject to Corporation Tax, Yes, you will need to declare it as income., offsetting with the withholding as a payment on account.
Conclusion
Winning the Christmas Lottery is a dream… but it's not all up to you. Keep in mind… How much is withheld, how to declare the prize, and what to do in case of shared prizes This will help you avoid surprises with the tax authorities. If you need help managing payments or taxes, Consult with your trusted advisor.
English 
Spanish