Spain’s €770 million lottery draw sparks tax scrutiny over big winners
Spain’s upcoming lottery draw will hand out €770 million in prizes. The event has sparked calls for closer scrutiny of large payouts after reports of rising wins by legal entities and non-residents. Tax union Gestha is now pushing for an investigation into €243.7 million paid out to such winners between 2021 and 2024.
The lottery’s top prize offers €200,000 per tenth share, but winners must pay tax on any amount over €40,000. A 20% rate applies to the excess, while the first €40,000 remains tax-free. The second prize of €75,000 follows the same rule, whereas the third prize of €25,000 is paid in full with no deductions.
Gestha has flagged a growing trend of corporations, foundations, and non-residents claiming large prizes. The group wants tax authorities to examine whether these payouts comply with current rules. Winners sharing tickets worth over €40,000 must register with the tax office and pay their share of the tax. Additionally, Gestha suggests lowering the tax-free limit to €2,500 for state, regional, ONCE, and Red Cross lotteries. This change, they argue, could bring in extra revenue. Any lottery win above the regional minimum must also be declared under the Wealth Tax. No official request for a 2025 review of these investigations has yet been recorded in public records.
The lottery’s €770 million draw proceeds amid calls for stricter oversight of high-value payouts. Tax rules already require winners to declare amounts over €40,000 and pay 20% on the excess. The debate now centres on whether current thresholds and enforcement are sufficient.
