Wednesday, 3 October 2012

Lottery Winnings to be Taxed!

From the beginning of next year, anybody lucky enough to win over 2,500 euros on any one of the Spanish lottery systems, will have to kiss goodbye to 20%, thanks the the conservative government’s latest decision.

Lottery winnings have always been sacred and not even in the deepest depths of Franco autocratic rule did he attempt to tax lottery winnings, but now the Spanish right-wing government has decided that this former ‘sacred cow’ is now fair game, and a source of bountiful revenue for the administrative coffers of the state.

Thanks to this ‘move,’ the Government hopes to rake in 825 million euros, yet there is already talk of boycotting lottery ticket purchases from the 1st of January.

The Minister for the Tax Office (Hacienda), Cristóbal Montero has been far from explicit about how far this unprecedented taxation will actually reach – whether it will include all lotteries, such as the one run by the Red Cross, for example.

 In fact, it is not even clear if the hugely popular Loteria El Gordo, this Christmas will be affected, as although it is held in December 2012, the money won’t be paid out until January.