In Spain, lottery prizes up to €40,000 are tax-free. On the part above €40,000, a flat 20% is withheld at source when the prize is paid. This rule applies to all official Spanish lotteries and to both residents and non-residents. On this page you’ll find exactly how it works, with worked examples for El Gordo, El Niño and the big jackpots.
The Rule in Short
| Tax name | Gravamen especial sobre los premios de determinadas loterías y apuestas |
| Tax-free amount | €40,000 per prize (per décimo or per winning bet) |
| Rate | 20% on the amount above €40,000 |
| How it’s collected | Withheld at source – you receive the net amount |
| Applies to | SELAE games, ONCE, Spanish Red Cross lottery and regional lotteries such as Loteria de Catalunya |
| Residents & non-residents | The same rule for both |
How Much Tax Do You Pay? Worked Examples
The formula: (prize – €40,000) × 20% = tax. Prizes of €40,000 or less are paid in full.
| Prize | Taxable part | Tax (20%) | You receive |
|---|---|---|---|
| €30,000 – Lotería Nacional Thursday 1st prize | €0 | €0 | €30,000 |
| €60,000 – Lotería Nacional Saturday 1st prize | €20,000 | €4,000 | €56,000 |
| €125,000 – El Gordo 2nd prize | €85,000 | €17,000 | €108,000 |
| €200,000 – El Niño 1st prize | €160,000 | €32,000 | €168,000 |
| €400,000 – El Gordo 1st prize | €360,000 | €72,000 | €328,000 |
| €1,000,000 – El Millón | €960,000 | €192,000 | €808,000 |
| €5,000,000 – El Gordo de la Primitiva jackpot | €4,960,000 | €992,000 | €4,008,000 |
Prize amounts per game can be found on the pages for El Gordo, El Niño, Lotería Nacional, EuroMillions & El Millón and El Gordo de la Primitiva.
Shared Tickets and Shared Prizes
If you share a décimo or a winning bet with others, the €40,000 exemption is divided in proportion to each person’s share. It is not multiplied.
Example: four friends share one El Gordo décimo equally. The décimo wins €400,000, so each friend’s share is €100,000. Each has a tax-free amount of €10,000 (a quarter of €40,000) and pays 20% on €90,000: €18,000. Each receives €82,000, exactly a quarter of the €328,000 the décimo pays after tax.
Sharing a décimo? Make sure the co-owners are registered when the prize is claimed, for example with a signed list of names and ID numbers. Otherwise the person who cashes the ticket may be treated as the only winner, and passing money on to the others could count as a gift.
Tax for Non-Residents and Players from Abroad
If you don’t live in Spain but win a prize on a Spanish ticket, the same 20% above €40,000 is withheld by the paying entity. You don’t normally need to file anything in Spain yourself: the withholding settles the Spanish tax.
- Your home country may also tax the prize, or ask you to declare it. Rules differ widely per country, so check with a local tax adviser.
- Double taxation treaties: if your country has a tax treaty with Spain that gives it the right to tax lottery prizes, you may be able to reclaim (part of) the Spanish tax from the Spanish Tax Agency.
- Played through an online service? With a messenger service, the prize comes from the official Spanish lottery and Spanish tax is withheld before you’re paid. With a lottery betting site, the operator pays the prize itself, so different tax rules may apply. Check the operator’s terms. More on the difference in our guide to playing online.
Tax for Residents of Spain
For residents, the 20% withholding is a final tax. Prizes subject to this special tax are not added to your income tax return (IRPF), and prizes up to €40,000 don’t need to be declared at all. Prizes from official lotteries of other EU/EEA countries are treated the same way.
How the Tax-Free Amount Has Changed
| Prizes from | Tax-free amount |
|---|---|
| 2013 – 4 July 2018 | €2,500 |
| 5 July 2018 | €10,000 |
| 2019 | €20,000 |
| 1 January 2020 – today | €40,000 |
Before 2013, Spanish lottery prizes were completely tax-free, which is why older articles sometimes still claim you “don’t pay tax on El Gordo”.
Lottery Tax FAQ
Do you pay tax on Spanish lottery winnings?
Only on the part of a prize above €40,000. On that part, 20% is withheld when the prize is paid. Smaller prizes are completely tax-free.
Do foreigners pay tax on El Gordo?
Yes, the same 20% above €40,000 applies to non-residents. Your home country may tax the prize as well.
Is the €40,000 per ticket or per person?
Per prize: per décimo or per winning bet. If a prize is shared, the €40,000 is split between the co-owners in proportion to their shares.
Do I have to declare a small lottery prize?
In Spain, no: prizes up to €40,000 are exempt and don’t need to be declared. Check your home country’s rules if you live abroad.
This page gives general information, not tax advice. Tax rules can change and depend on your personal situation. For large prizes, always consult a qualified tax adviser. Source: Agencia Tributaria (Spanish Tax Agency).
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