How much does the Treasury keep from the 2023 El Niño lottery prizes?

The 2023 Children's lottery draw allows the luckiest to start the year with the best of luck.

Thomas Osborne
Thomas Osborne
05 January 2023 Thursday 23:43
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How much does the Treasury keep from the 2023 El Niño lottery prizes?

The 2023 Children's lottery draw allows the luckiest to start the year with the best of luck. The same one that the Tax Agency will have, always pending the prizes, especially those who are obliged to pay taxes. Which are? How much remains Treasury?

There are three grand prizes in the El Niño lottery. Before taxes, the first prize amounts to 200,000 euros for the tenth, the second to 75,000 euros for the tenth and the third to 25,000 euros for the tenth. The rest of the prizes are already considered minor, with approximations of up to 1,200 euros per tenth and extractions that deliver 140 euros per tenth. The refunds, as usually happens, are paid with 20 euros, recovering the investment in the purchase of the participation.

Is that really charged if you win? The answer in the most bulky cases is a no. The Treasury always wins in this type of draw and prizes that exceed 40,000 euros are taxed.

In this way, in the first prize of 200,000 euros, the first 40,000 euros are exempt from taxes. The rest, 160,000 euros, are taxed at 20%. This implies a payment of 32,000 euros in taxes. In the account, then, 168,000 net euros are received.

Regarding the second prize, of 75,000 euros, again the initial 40,000 euros are exempt from tax. For the remaining 35,000 euros, 7,000 euros are paid, which leaves the second prize at a net of 68,000 euros.

In the rest of the prizes, you do not have to worry about taxation, as it falls below the exempt limit. This implies that in general the winners of this Friday's draw face a lower tax burden than the Christmas lottery prizes.

In any case, you must take into account not to make mistakes when collecting a prize if it has been shared. The big mistake occurs when a single person collects and then distributes the amount among those who have shared, something that can trigger the tax bill when considered a donation.