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How much does the Treasury keep from the Christmas Lottery prizes?

Date: June 8, 2023 Time: 12:18:01

The Christmas Lottery Draw puts 2,520 million euros at stake on December 22. Many already dream of taking a pinch, we must not forget that they will not have all the prize that the children of San Ildefonso sing because they will have to give the ‘aguinaldo’ to the Treasury if the prize exceeds 40,000 euros. To be more exact, the Tax Agency will keep 72,000 euros of each Jackpot prize of the Extraordinary Christmas Draw that will take place this Thursday, in application of the special tax that came into force in 2013.

How much do you have left if you get the Gordo?

So, calculator in hand, how much will you have after taxes if you win the Christmas Lottery? The lucky ones who win the Jackpot, who distribute 400,000 euros to the tenth, will receive 328,000 euros, while the treasury will pocket the remaining 72,000 euros. In the same way, for a second prize, endowed with 125,000 euros, the non-exempt 85,000 euros would be taxed, so that the Treasury keeps 17,000 euros and the winner, with 108,000 euros.

The winners of a third prize -50,000 euros- will have to pay 2,000 euros and will keep 48,000 euros, while the rest of the prizes are exempt for not reaching 40,000 euros. The Treasury technicians (Gestha) calculate that if the first three prizes are distributed, the public Treasury will enter 163.8 million for this tax, 7.28 more than last year when eight more series were broadcast.

How to distribute a lottery prize so as not to overpay the Treasury

This tax is applied in the form of withholding, that is, the additional one itself.

It will not be easy either to try to evade fiscal responsibilities. From the law firm Le Morne Brabant, Maribel Sánchez explains that there are those who decide to donate the prize to her children to pay less and in the end they find themselves with a double tax burden: from the donor and from the recipients. Parents must contribute, in the first instance, the part that exceeds those 40,000 euros mentioned above. If a part remains, he must render accounts for that amount in the usual income statement. As for the children, and depending on the autonomous community in which they reside and the state of this matter, do the same, you must face the prescriptive amount in the inheritance tax. Always in a limited period of time, only in the month after receiving the money

Who should pay taxes if you share El Gordo with your relatives?

The Tax Agency explains that when the prizes are shared with friends or family, the 40,000 euros exempt from taxation must be distributed proportionally to the participation of each one. Whoever is in charge of this task will appear as the sole beneficiary or collection manager and must be able to prove to the Tax Agency that the distribution has been made and to identify all the winners.

One possibility, the lawyer admits, is to ensure the tenth or tenths that are played. Thus, if it touches, it will be the insurer that is in charge of facing the taxes derived from the benefit. Of course, when the winner sees her personal income increased, she will find that she will have to pay more in her income statement.

Puck Henry
Puck Henry
Puck Henry is an editor for ePrimefeed covering all types of news.

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