We will all be watching the Extraordinary Christmas Draw next December 22nd, with our tickets ready to see if any of us are among the winners. If luck is our lucky charm, we should know that the Treasury could win a part of the prize.
Up until 2012, winnings from games were exempted from tax. However, since then, a fixed percentage must now be paid for all prizes. The tax guidelines for the Christmas Lottery are set by Law 16/2012 of December 27, 2012.
The tax rates for the Christmas Lottery prizes in 2021 will be the same as 2020. The Treasury will continue to have 20% tax on amounts above 40,000 euros. However, this amount is based on the 2018 General Budgets. The Jackpot, the second prize and the third will pay. The fourths and fifths don’t pay because they are not above that amount.
If you have to pay taxes in cases where it is required, keep in mind that the tax will be paid once the 40,000 euros exempted from being deducted. If you are among the lucky winners of the first prize (which ranges from 400,000 to tenth), you will need to pay taxes of 360,000 euros. The 20% tax will also be applied. The prize amount will be 328.00 euros, while the Treasury will receive 72,000 euros.
The second prize, 125,000 Euros for the tenth, will be subject to 85,000 Euros tax. 17,000 Euros will go to Treasury, and 108,000 will go to the winner. The third prize is 50,000 euro per ticket. 2,000 will be donated to the Treasury, and 48,000 to winner. The fifth prize, fourth prize, and the remainder of the approximations or refunds, will not be subject to tax as they are not more than 40,000 euros.
Since then, the tax-exempt amount has increased steadily to reach its current level. It was 10,000 euros in 2018, 20,000 euros in 2019, and 40,000 euros by 2020.
The Treasury will automatically retain the winning ticket, so those with winning tickets won’t have to worry about declaring it. These prizes are not included within the income tax base so you won’t have to pay any more for the annual declaration.
Remember, the Treasury might keep a portion of your winnings depending on the prize you won. First, remember to buy your tenths. If you’re looking for one in particular, you can use the locator.
