This month, at 9 a.m., the drums at the Teatro Real in Madrid will start spinning and millions of Spaniards will be waiting for you if your number is assigned to the Gordo: four million euros for the series or 400,000 euros for the tenth. This ticket will not be the only winner, because it is also the second prize, which distributes 125,000 to the tenth; the third, with 50,000; four prizes and eight fifths (respectively 20,000 and 6,000 euros per ticket). If you are one of the winners of these prizes, you should know how much money goes to the Hacienda.
Since 2013, a special tax has been in force which covers amounts above 40,000 euros from this drawing with 20%. So those who win a tenth with the Gordo Prize will have to pay a total of 72,000 euros, so instead of winning 400,000 euros they will receive 328,000. In the case of the second, the net amount won will be 108,000 and if you have an invoice awarded with the third, 2,000 euros will be withheld, resulting in 48,000 euros.
This money earned is, however, not necessary to include it in the tax return or to take any additional steps. This price is not included in the tax base of the IRPF and is sufficient with the retention, which is carried out by the National Lottery and Apuestas Company (Selae). Therefore, the Selae itself will accumulate the corresponding remuneration by applying the charge at the time of payment.
How much money will Hacienda make?
With the application of this tax, the Tax Agency will be able to recover up to 180.2 million with the prizes of this draw, if the big three are distributed, according to the calculations made by the technicians of the Ministry of Hacienda (Gestha).
Since Gestha also warns that in 2024 there was a strong return of the grand prizes obtained by companies, foundations and associations, which were multiplied by 43, compared to the significant declines recorded in 2021 and 2023. In addition, the grand prizes were multiplied by more than 14 obtained by non-residents, who do not have to declare them to support their retention.
The Hacienda technicians also recall that although they should not include the money earned in the IRPF base, the beneficiaries will not be disadvantaged in applying for scholarships, aid or other public assistance that depends on their income and assets. It is therefore important to include it in the Patrimonial Tax if the whole reaches the minimum to present it.
Shared prices
In the case of prizes shared between friends or acquaintances, a very common practice at the time of purchasing the Christmas lottery, the 40,000 euros tax-free must be distributed among all beneficiaries in proportion to their participation percentage, as indicated by the tax administration. Additionally, when you make the distribution and act as the sole beneficiary, you must be able to believe that the money earned has been distributed among all participants.
It should also be emphasized that, according to the Sánchez Garrido Bar Association, if a person recovers the entire price and distributes it without having properly accredited the previous participation of others, “Hacienda could consider the share as a donation subject to the Impuesto de Sucesiones et Donaciones”, a charge that “could result significantly higher than the retention initially applied”.
On the other hand, the Tax Administration ensures that IRPF taxpayers or non-resident taxpayers without a permanent establishment receive a bonus — and apply withholding when paying the amount — without having to present another self-liquidation to anyone. In the case of the latter, you can also request a refund that could correspond to them thanks to the application of an agreement to avoid international double taxation.
Repay the minimum amount
The technicians of the Hacienda also complained to the government which reduced the minimum price exemption of Loterías del Estado or autonomous communities, ONCE and Cruz Roja to the first 2,500 euros. They therefore emphasize that there is no “justification” that does not tax a price below 40,000 euros, but this implies certain benefits, such as unemployment, or subsidies for reduced amounts. The minimum threshold for granting scholarships has varied in recent years. Until 2017, it was set at 2,500 euros, then increased to 10,000 in 2018, to 20,000 in 2019 and to 40,000 euros – currently in force – since 2020.
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