Christmas is approaching, and with it Spain's traditional Lottery draws, whose promise of overnight riches is hard to resist. But for the tax authorities, there’s no need for dreams: year after year, the Spanish Tax Agency is the real winner, thanks to the share of proceeds not awarded as prizes.
If you hope to win and are already planning how to spend your fortune, we explain how much the tax authorities take from lottery winnings so you can calculate exactly how much you’ll keep after taxes.
How much does the tax office take from the lottery?
Lottery prizes in Spain are subject to a special tax at a fixed rate of 20%, with a few exceptions.
The main exception is a minimum exemption of €40,000. This applies to bets of at least €0.50; for smaller bets, the exempt amount is reduced proportionally. For those wondering when the tax authorities claim their share, the general rule is that prizes are taxed on the amount remaining after deducting the €40,000 exemption from the total prize.
In the case of those who receive prizes totalling €40,000 or less, they will not have to pay anything, provided that the bet exceeds 50 cents.
How is a shared prize taxed?
For a lottery prize with joint ownership, the tax-exempt amount is divided equally among the owners according to their shares. Each participant must have already paid their share, as proof of joint purchase will be required.
If only one participant initially claims the prize and it is later shared, each additional participant will face a higher tax burden in the form of a gift. This triggers inheritance and gift tax (ISD), increasing the overall tax payable.
How much does the tax office take from the Christmas lottery?
In the case of the 2025 Christmas Lottery, the State could collect around €175 million, assuming all tickets are sold. Interestingly, a portion of this tax revenue comes from unclaimed prizes.
It is important to note that the special tax on gambling does not only apply to the Christmas Lottery, but also to other similar draws, including:
- Prizes from lotteries and betting organised by the State Society of Lotteries and Betting and by the bodies or entities of the autonomous communities.
- Prizes from raffles organised by the Spanish Red Cross.
- Prizes from games authorised for the Spanish National Organisation of the Blind (ONCE).
- Awards organised by public bodies or entities in other EU or EEA member states that carry out non-profit social or welfare activities and pursue objectives equivalent to those of the bodies listed above.
The remaining prizes are considered capital gains and must be included in the general taxable income of the Personal Income Tax (IRPF) for the year in which they are received.
Taxation of the 2025 Christmas Lottery
Lottery taxation in 2025 remains the same as in previous years, as there have been no changes to the governing regulations.
Here are some examples of how much your prize will be after taxes, depending on the amount you win:
| Award type | Amount withheld | After-tax prize |
| Christmas Lottery jackpot (€400,000) | €72,000 | €328,000 |
| Second prize (€125,000) | €17,000 | €108,000 |
| Third prize (€50,000) | €2,000 | €48,000 |
| Fourth prize (€20,000) | €0 | €20,000 |
| Fifth prize (€6,000) | €0 | €6,000 |
| Pedrea (€100 euros) | €0 | €100 |
The lottery tax: what is it and how does it work?
This term refers to the special tax on gambling activities, which is incorporated into the regulations for Personal Income Tax (IRPF) but is subject to different rules than those normally applied to income tax.
The easiest way to understand the tax on lottery winnings is through examples: the larger the prize, the greater the amount owed to the tax authorities, and the smaller the relative impact of the tax-free allowance.
If I win €30,000, how much does the tax office take?
In principle, as long as your bet is at least €0.50, the Tax Office will not claim any tax in this case, since the prize does not reach the minimum exemption of €40,000.
How much does the tax office take from €60,000 prize?
If you win a prize of €60,000, the amount you must pay to the tax authorities will be 20% of €20,000, that is, €4,000. Therefore, you will keep €56,000 of your €60,000.
How much does the tax office take from a €100,000 prize?
If you are fortunate enough to win a prize of this size, remember that you will only pay tax on the €60,000 remaining after deducting the €40,000 exemption set by law. The tax authorities will therefore take 20% of that €60,000, which amounts to €12,000.
If I win €100 million, how much does the tax authorities take?
If your prize totals €100 million, the first €40,000 is tax-free, so you will only pay tax on €99,960,000. This means the tax authorities will take at least €19,992,000 of your winnings – almost €20 million.
When is the lottery tax paid?
As the prize winner, a 20% withholding tax will be applied at the time of payment by the paying entity. By the time you receive your prize, the tax authorities will have already deducted the appropriate amount, ensuring they collect the tax due.
Specifically, the special tax arises when the prize is paid or settled, and the withholding or payment on account releases the taxpayer from the obligation to submit a self-assessment.
Do lottery winnings have to be declared on your tax return?
Lottery prizes are not subject to the general rules of Personal Income Tax, as they fall under a special levy known as the tax on gambling activities.
Prizes from the Christmas Lottery draw are not included in the taxable base of the Personal Income Tax (IRPF).
There is a self-assessment form for the special tax on gambling activities (Form 136), but it only needs to be submitted if your prize has not been subject to the corresponding withholding tax.
If your prize is entirely exempt, you do not need to include it in your income tax return, provided it is one of the prizes covered by this tax, as is always the case for prizes from lotteries and betting organised by the State Lottery and Betting Company and by the bodies or entities of the various autonomous communities.