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sure more than once you have dreamed, whether asleep or awake, that you won the lotterybut have you thought how much of what you get is kept Estate? Winning is one thing and another thing is how much you win, so it's time to know the real prize you have left if you win a very juicy amount in the lottery, bonus lottery, euromillions or any other bet in the SELAE.
You don't have to know a lot of math to know how much you have left of the winning amount in the lottery. The amount that we must pay to the Treasury depends on the money earnedTherefore, the way in which the prize is taxed varies from one amount to another. This rule applies to all prizes in the National lottery, pools, bonolotos, tenths of the ONCE, Red Cross, primitives, etc.
Taxes to pay if you win a lottery prize
To begin with, there are no withholdings on prizes of less than 40.000 eurosTherefore, if you get an equal or higher amount, there is nothing to subtract, it is all for you. Taxes arrive when said amount is exceeded, and the bite is 20%.
To make it clearer we leave you a example below:
TOTAL PRIZE: €90.000
TAX-FREE AMOUNT: €40.000
AMOUNT TAXED TO THE INCOME: 90.000 – 40.000 = €50.000
AMOUNT TO BE PAID: 20% OF €50.000 = €10.000
AMOUNT TO BE RECEIVED: €80.000 (50.000 – 10.000 = 40.000 + 40.000)
Taxes to be paid if you get El Gordo de la Navidad
If we apply these accounts to prizes as recognized and important as those of the Christmas Lottery, we can know exactly how much we have left. if it's your turn The Fat Christmas whose amount is €400.000 per tenth, the total amount you take is 328.000 €. If it is the second Christmas prize, the total to be received after paying 20% of taxes is €108.000, and the third would be a total of €48.000.
Taxes that must be paid if you win the Million EuroMillions
How much do I have left if I win the Million EuroMillions? In this particular case, the tax-free limit is €24.000 since the amount played is €0,30. So the solution is 1.000.000 – 24.000 = 976.000 – 195.200 (20% of 976.000) = 780.000 + 24.000 = 804.000 €
Present the award in the Income Statement
Once you know this, now the most important thing remains and that you should not forget, Present in your next income statement the prize that you have received. In the section "Prizes obtained for participation in games, raffles or random combinations without advertising purposes" you must include the amount you have won, so that the Tax Agency can verify that 20% has actually been paid to the Treasury.
The money you have won in the prize does not add to your personal income tax base, so don't worry, since what you have to pay or return does not influence. Now, if you invest the prize money in other assets that generate profit, for example, shares, they will be computed in the payment of the IRPF.
In the hypothetical case that the entity that organizes the draw (SELAE) does not compute that 20% and you receive the prize without withholding, you must submit a self-assessment to the Treasury paying that percentage. If you have doubts, you can leave this task to a tax advisor so that everything goes in order.
Taxes if the prize is shared
If the prize you win is shared, that is, you were playing halfway with one or more friends, it is important to identify all the winners, since if a single person is going to collect it, then when it is distributed, it will be considered a donation, so the person who collects it will have to pay the donation tax (ISD) which is usually higher.
Taxes if a company wins the prize
In the event that the prize is for a company or association, it will be taxed according to the Corporation Tax (IS). For non-residents in Spain, the prize is declared through the Non-Resident Income Tax (IRNR).
It is always recommended that if you win a grand prize (greater than €40.000) you consult all this information before going to collect it and/or with a specialized advisor, so that you do not get unwanted surprises later.
