Do They Tax Lottery Winnings in Europe?

Do they tax lottery winnings in Europe? What prompts the question is that I saw that there was a 200-million euro prize just announced. I know that lottery winnings are not taxed in Canada.

The €220 million (US$256 million) lottery jackpot cited was hit in France in late October in the EuroMillions multi-national lottery. It set a record for the game's jackpot; the previous EuroMillions record jackpot was €210 million (US$244.7 million) drawn on Feb. 26. The EuroMillions jackpot is capped at €220 million; it doesn't increase over the next four drawings. If no one wins in the fifth drawing, the pool is shared among ticketholders at the next prize tier of winners.

In national lotteries, the tax rates are established by the nations themselves. For example, in Greece, all lottery winners pay a 10% tax on their prizes, even if it's only one euro. In other countries, lottery jackpots have minimums for winnings that get taxed, generally between €500 to €3500. Poland also has a 10% tax, while in Italy, it's 6%, Portugal 20%, Romania 25%.

The United Kingdom doesn't tax jackpot winnings at all. Her Majesty's Revenue & Customs doesn't treat lottery winnings as income, so whether you win £2.50 or £125 million, you're paid the full amount. Same in Canada, Australia, New Zealand, etc.

For EuroMillions, the continent's counterpart to Mega Millions and Powerball, all prizes, including the big jackpots, are tax-free, except in Spain (20% above €2,500 prizes), Portugal (20% above €5,000 prizes), and Switzerland (35% above 1,000 CHF -- that's the symbol for the Swiss franc).

Other than those three countries, when you win a EuroMillions prize, there's no annuity discount or withholding taxes. Unlike in this country, when it comes to multinational jackpots, what you see is what you get.

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Comments

Jackie Dec-14-2021

CA Lotto

Withholds 24% for the IRS, however, anything over $100K after all deductions filing single and no kids in your 1040 gets hit for 40%, a difference of an additional 16% so don't spend those Lottery winnings too fast.

David Dec-14-2021

Lottery winnings should not be taxed

Nor should gambling winnings.

[email protected] Dec-14-2021

Spain & Portugal

Why do those two countries set their tax limits in pounds?  You'd think they'd use Euros.

Jeffrey Small Dec-14-2021

Canadian Lottery

My plan is to win the Canadian Lottery where you pay no tax. Become a Canadian citizen and keep all of the money since it is not taxed.  Then come back to the US and live here anyway... So far I have only gotten 4 of the 6 numbers but I keep trying...

Deke Castleman Dec-14-2021

Spain and Portugal

Yes, Spain and Portugal use the euro. The pound sign snuck in there during a copy and paste gone bad. Corrected. Thanks for pointing it out.

jay Dec-14-2021

Return to US

Jeffry - Just remember that a Canadian dollar is only 70 cents American - so its like being taxed 30% anyway. Yes I am Canadian and we call it the 49$ parallel as that is about the minimum cost  to ship anything cross border.

rett98 Dec-14-2021

Lotteries in the USA

Coming from the UK I have always wondered why lotteries are not taxed at source...(ie when you buy your ticket). If the IRS took out say 30c from every $1 ticket or 60c for every $2 ticket I accept the prize would be lower but it should then be tax-free. I am sure the reason they don't is due to each state having different rules and regs about lottery winnings and also it takes away the illusion of having a massive prize because what you see is definitely not what you get...

Llew Dec-14-2021

Jeffrey

Good luck emigrating to Canada. Unless you’re under a certain age and/or have a job skill that they really need, you’re outta luck. My guess is that they don’t want us foreigners glomming off their universal health care. 
One of my friends has been trying to emigrate for years. Unfortunately, she’s over sixty and was a newspaper reporter.  No way she can get approved. 🙁

Donzack Dec-14-2021

Borders

Are you saying Canada is protecting its border?

Roy Furukawa Dec-14-2021

Shocking

Shocking that the UK doesn't tax the winnings at all. Nice that they don't, but I am very surprised they don't even take a small cut in the way of taxing the winners.

AyeCarambaPoker Dec-14-2021

@ Roy

The UK taxes the stake (rather than the prize) at 12%

They also don't tax any form of personal gambling winnings, rather taxing the one true winner (casinos and sports books on their overall winnings)

Logistically it's far easier to tax a few dozen companies rather than expecting tens of millions to keep honest records and actually pay

Question of the Day - 14 December 2021

Comments