When you win the lottery how do you get paid?

When you win the lottery how do you get paid?

Banks that pay lottery prizes

In any of the cases, the exempt limit of the special tax on lottery and betting prizes is 40.000 €, so that all the prizes that do not reach this amount per tenth or bet are free of tax.

You can have a receipt with an exempt amount for a winning bet and also another winning bet with part of the tax applied. In any case you will be paid the sum of all with the individualized calculation.

In the case of El Millón (game associated to Euromillions), the exemption is 24,000 €, since only 0.30 € is played and the tax exemption limit applies proportionally in the case of bets under 0.50 €.

Fortunately, users can check the prizes in many ways: at the Loterías points of sale, in the different media or right here, on the official website and official Apps.

How to collect lottery prizes online

Thus, for each winning tenth of the Christmas Gordo with 400,000 euros, the first 40,000 euros will be exempt from taxes. Of the remaining 360,000 euros, 20% must be taxed to the Treasury. So 72,000 euros will be for the tax agency and 328,000 for the lucky winner.

In the second prize endowed with 125,000 euros, taxes will be paid on 85,000 euros (after subtracting the 40,000 that are exempt). Therefore, the Treasury will keep 17,000 euros of the total and the winner will receive 108,000 euros.

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In the case of the winners of the 50,000 euros of the third prize, the formula is the same. If 40,000 euros are exempt, the Treasury is paid 20% of 10,000, that is, 2,000 euros. The lucky winner therefore gets 48,000 euros.

National lottery number today

The current situation is quite different. The taxation of the Lottery is very clear and also relatively simple. If one thing you should be clear about is that you have to pay taxes for El Gordo and the rest of the draws of ONLAE, Loterías y Apuestas del Estado.

And how much money will the Treasury take from the bets?  A 20% of all that exceeds 40,000 euros. And is that the first 40,000 euros are exempt from taxation. For practical purposes, this means that you will only have to pay taxes on the prizes over that amount, the rest will not even have to be declared to the Treasury.

As an example, imagine that you have won 4,000 euros in the betting game this 2021. Thanks to the minimum exemption, you will not pay taxes on the prize. Let’s up the ante a bit and imagine that you win a big prize in the bonoloto, of 50,000 euros. In that case you will have to pay taxes for the bonoloto.

Have you won a prize and don’t know what to do with that money or how much tax you should pay? In these cases, the best option may be to consult a financial advisor to help you minimize tax payments and make your money profitable. You can also take a look at our index funds showcase and invest a part of it in a simple way.

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Collecting Christmas lottery

The taxation of the Christmas lottery is a topic that we ignore when we buy a lottery ticket. Then, if we win, we worry about how the prizes are taxed and what we must do to fulfill our obligations with the Tax Agency. Because, at the end of the day, the December 22 draw is an opportunity for many citizens to win thousands of euros, but above all it is big business for the State through ticket sales and taxes.

The tax is 20% and applies only when the prizes exceed 40,000 euros. But this percentage is not taxed on the totality of the prize, but on the amount that exceeds the exemption of up to 40,000 euros. This means that a tenth prize winning the Gordo, endowed with 400,000 euros, will pay 72,000 in taxes. This figure is obtained by subtracting the 40,000 euro exemption from the 400,000 euro prize and applying 20% to the remaining 360,000 euros, i.e. 72,000 euros.

The Christmas Lottery will distribute 2,408 million euros in prizes in 2021. In this edition there are 172 series of 100,000 tickets divided into ten tenths each. This means that in total there are 172 million tenths competing for the almost twenty different prizes that will be drawn.

When you win the lottery how do you get paid?
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