Loterías y Apuestas

The prizes awarded by Loterías y Apuestas del Estado may be:

1. Exempt from withholding tax if the prize amount is €40,000 or less.**

2. You may have a voucher with an exempt amount and also another winning bet with a part of the tax applied. The special tax rate will be levied separately on each tenth share, fraction or winning lottery ticket or bet.

**In the case of El Millón (a game associated with Euromillones), since participation in this game costs 0.30 €, the exempt amount is reduced proportionally, so that the exemption is 24,000 €.

What if the prize is shared? (Not applicable to online games)

In the event that the prize is jointly owned, the exempt amount set out in the previous paragraphs will be apportioned amongst the joint owners in proportion to their corresponding shares. For example, if a tenth share has been awarded a prize of 60,000 € and the prize is shared between four people, the tax treatment will be as shown below.

Tenth share prize (gross): € 60,000

Tax-exempt portion per tenth share: € 40,000

Basis for withholding tax: €60,000 – €40,000 = €20,000

Tax rate: 20%

Withholding tax: €20,000 × 20% = €4,000

Tenth share prize (net) = €60,000 – €4,000 = €56,000

Tenth share prize for each of the four winners (gross): 60,000 / 4 = € 15,000

Tenth share prize for each of the four winners (net): 56,000 / 4 = € 14,000

In other words, each of the four winners received € 15,000 gross, of which € 1,000 was ultimately subject to tax, leaving a net amount of € 14,000, which is what they actually collected.