Everything you need to know about EuroMillions and taxes. EuroMillions is known for its high Jackpots. 10, 20 or 30 million euros is no exception during Tuesday and Friday evening. People talk about ‘Mega Tuesday’ or ‘Mega Friday’ when the Jackpot money is extra high. On these evenings there also five extra prizes of 1 million pounds (1,1 million euros) and holidays to win. However, winners need to pay a lottery tax. How much money do you have to ‘sacrifice’ when you’re a lucky winner?
European countries and taxes 2023
There is good news and bad news. The good news is that you don’t have to pay taxes when you live in another country than Portugal, Switzerland and Spain. The bad news is that if you’re a citizen of these countries the taxes can be quite high. For example, if you’ve won more than 5000 euros in EuroMillions Portugal you need to pay 20 percent on your prize. For Spanish players there is a 20 percent tax on prize money above 2500 euros. Players from Switzerland are the least lucky, if you can still talk about it like that.
They need to pay 35 percent taxes on prize money above 1000 Swiss Franc. The difference between these countries and the rest of Europe is the fact that they consider a lottery win as an ‘earning’.
Lottery taxes of different European countries in 2023
Tax in Polen
There are two tax brackets in Poland. Tax group 1: tax-free up to PLN 2,280. Tax group 2: any part of the prize above PLN 2,280 is subject to a 10% tax rate.
Tax in Portugal
There are two tax brackets in Portugal. Tax group 1: tax-free up to €5,000. Tax group 2: Any part of the price above €5,000 is subject to 20% tax.
Three tax brackets in Romania
There are three tax brackets in Romania. Tax group 1: Prices from RON 1 to RON 10,000 are subject to a 3% tax rate. Tax group 2: Prices between RON 10,001 and RON 66,750 are subject to a fixed tax of RON 300 and a 20% tax rate on the amount above RON 10,000. Tax group 3: Prices above RON 66,751 are subject to a fixed tax of RON 11,650 and a tax rate of 40% on the amount above RON 66,750.
lottery tax in Spain
Gambling tax: 20% on winnings over €2,500
Notes: Tax is withheld directly at source.
There are two tax brackets in Spain. Tax group 1: Tax-free up to RON 40,000. Tax group 2: Taxed at 20% on any part of the price above 40,000 euros. Citizens of most countries other than Spain are entitled to a full tax refund to avoid double taxation.
There are as many as seven tax brackets for lotteries in Italy.
Tax group 1: tax-free up to €100.
Tax group 2: For the portion of the prize between €100.01 and €300, a local shopper’s contribution of €1.03 applies.
Tax group 3: For the part of the price between € 300.01 and € 500, € 3.10 is charged.
Tax group 4: The portion of the price between €500.01 and €1,000 is subject to a local retail fee of €3.10 and a tax rate of 20%.
Tax group 5: Each portion of the price between €1,000.01 and €5,200.00 is subject to a local sales price of €6.20 and a tax rate of 20%.
Tax group 6: Any portion of the price between €5,200.01 and €52,000.00 is subject to a local retail fee of €5.16 and a tax rate of 20%. Tax group 7: Any portion of the price above € 52,000.01 is subject to a tax rate of 20%.
Gaming tax: Up to 20%
Notes: Depends on the amount of winnings; lottery winnings are generally tax-free up to a certain amount.
Gambling tax: 12% on winnings over €500
Notes: Tax is withheld directly at source.
Gambling tax: 18% for operators
Notes: Lottery winnings are tax-free for winners.
Austria no lotto tax
Gambling tax: None
Notes: Lottery winnings are tax-free, but other taxes may apply to interest on the amount won.
Tax on interest
The fact that many countries don’t levy taxes on prize money doesn’t mean that you don’t have to pay taxes at all. First of all, there is a so called ‘tax on interest’. When there’s a sum of money on your bank account there is an interest as well, and you need to pay a levy on it. It could be helpful to open an account at a private bank where professionals help you to deal with your new financial situation. There are a lot of things you need to think about, and some guidance and advice is definitely needed.
Some countries also used the so-called ‘inheritance tax’. For example, in the United Kingdom there is an ‘inheritance tax’ of 40 percent when your estate is worth more than 325.000 pounds, which is about 366.000 euros. This sum of money only accounts for individuals, because couples need to pay 40 percent tax when the value of their estate is more than 650.000 pounds (723.000 euros). It is possible to pay less taxes if you give 10 percent of the money to charity. In that case you pay 36 percent taxes. It is a good idea to have a life insurance by the way. The people or fund that received your money still have to pay taxes on it if you die within seven years of giving money to them. With a life insurance they’re protected from this. So it’s always a good idea to make a so-called ‘syndicate agreement’ before you give the prize money to charity. It would be terrible if the fund has to pay taxes on the full amount of money because you’ve passed away.
Do I have to tax gambling in Belgium?
You won a nice amount with one of our scratch or draw games, do you have to hand over part of it to the tax authorities? The answer is: NO!
“What you can win with our games is exempt from taxes,” explains Jean-Nicolas David, Chief Financial Officer of the National Lottery. “Whatever game you have participated in, if you win, you will never be taxed on it. So it concerns net amounts that you don’t have to state on your tax return.