Català
Español
English
Well, if your tenth is rewarded with the Gordo and you go to collect the 400,000 euros you will find that the bank will only pay you 328,000. What happened? Because they have applied the tax to which the Christmas Lottery prizes are subject.
Please note that prizes of less than € 40,000 are not subject to the payment of taxes, while those who exceed this amount will have to pay 20 per cent of the prize to the Inland Revenue. This means that only the tenths of the Gordo, the second prize and the third prize will pay taxes.
In addition, it should be borne in mind that the collection is not made on the total prize, which in the case of Gordo is 400,000 euros per tenth, but on the amount once the exempt part has been deducted. Thus, a person who has a tenth prize with the 400,000 euros of the First Prize, will pay 72,000 euros in taxes (20 percent of 360,000) and will receive 328,000 euros.
Likewise, those who are lucky in the Christmas Lottery must keep in mind that the tax does not apply to prizes of less than 40,000 euros, even if the sum of these exceeds this amount. That is, if you win five prizes worth 10,000 euros each, all five will be tax free.
However, whatever amount we have earned, if we invest the income will be taxed in the form of bank interest or through the Wealth Tax. Lottery prizes are not included in the personal income tax base. So you don't have to pay more on the annual return. Nor do they affect when it comes to obtaining public aid for scholarships or social benefits.
What if the prize is shared?
In the case of a shared prize, the Inheritance and Donation Tax could come into play, which would be paid by the recipient of the prize, and which depends on the taxation of each Autonomous Community.
Therefore, it is recommended that all winners be identified from the beginning. Firstly, because the bank is obliged to inform the Tax Agency and, secondly, because if the prize is collected by a single person and then distributed, the Treasury may consider this payment as a donation and, therefore, , demand the corresponding tax.
This is the amount left to the Treasury if we have been awarded one of the following Christmas Lottery prizes:
First Prize: 400,000 euros to the tenth. 328,000 for the winner and 72,000 euros for the Treasury.
Second Prize: 125,000 euros to the tenth. Treasury is left with 17,000 euros and the winner with 108,000 euros.
Third prize: 50,000 euros to the tenth. The Tax Agency is left with 2,000 euros and the winner with 48,000 euros
The fourth prizes, which are endowed with 20,000 euros in number, or the fifth prizes, which carry 6,000 euros, do not have to pay to the Treasury because they are amounts that are below 40,000 euros tax-free.
Minor prizes, other approaches and refunds are exempt for less than 40,000 euros.
What if the prize winner is not an individual?
In the event that the winner is a company, association, foundation, cooperative or any other legal form of company, the obligations change. The amount earned is included in the corporation tax base, and the withholding tax is deducted from the amount they pay.
What about New Year's Eve?
The same criteria applies to the New Year's Eve Grossa as to the Christmas Lottery. Prizes below 40,000 euros are exempt. For higher amounts, the tax is 20 percent, after deducting the exempt portion. If you need more information do not hesitate to contact DATA and SERVICES.