Enjoy the same Christmas Jackpot joys with less tax

In all Christmas Lottery draws the Tax Agency is the most blessed by the designs of Fortune. It was able to enter 188 million last year thanks to the refunds of non-awarded tenth winners, and the tax reform of 2013, in which the first 2,500 euro of each prize was exempted from taxes. This decision was changed by the most recent approved budgets.

Progressively, the minimum amount exempted from prizes would rise. The exempt amount for last year was 10,000 euros, and this year it is 20,000 euros. This decision exempts fourth prizes and approximations from taxes for this draw. The quarters will distribute 20,000 Euros per tenth; the eight fifths will give 6,000 Euros per tenth. Approximations vary from 48 to 100 Euros per euro for El Gordo, while the quarters will distribute 20,000 Euros per tenth.

Josep Manuel Iborra (President of the National Association of Provincial Associations of Lottery Administrations) says that almost 60% of prizes paid by State Lotteries and Bets are exempt from tax. The Gordo, which is endowed with 400,000 Euros, is an example of the highest prize. This amount must be subtracted the 20,000 exempt from tax. The Treasury will apply 20% tax (which has not changed) on the remaining 380,000 euro. The winner will receive 304,000 euros plus the 20,000 exempted and 76,000 euros to public coffers.

The same operation is used to determine the second prize. It is endowed with 125,000 Euros per tenth. The Treasury receives 20% of the 105,000 euros and the exempt 20,000 are subtracted. These are 84,000 euros for each winner (plus 20,000) as well as 21,000 euros for Treasury.

Last thing. When the prize is collected, the Tax Agency will take its part. It is recommended that you mention that you were awarded a prize in your income tax return.