Lottery tax in Europe: 20% in Spain, Italy and Portugal, nothing in Germany, France and Ireland

Concepts2026-10-10

El Gordo's EUR 400,000 on one décimo pays EUR 72,000 of tax in Spain, a EUR 1,000,000 SuperEnalotto prize pays EUR 199,900 in Italy, and in Germany, France and Ireland lottery prizes are not taxed at all.

• €72,000Spain, El Gordo décimo
• €199,900Italy, EUR 1,000,000

How European Countries Tax Lottery Prizes

The table below shows how different European nations handle lottery winnings. Spain, Italy, and Portugal apply a flat withholding tax to the portion of a prize that exceeds a specific tax-free threshold. This means the government takes a fixed percentage of the amount above that limit. Germany, France, and Ireland follow a different approach. In these countries, the lottery prize itself is not subject to income tax. Instead, taxation applies only to any interest or dividends the winner earns after receiving the money. This distinction affects how much of the initial prize remains available for immediate use. Use the winnings tax calculator to estimate your specific liability.

Comparing With United States Rules

The United States treats lottery winnings differently than many European nations. In the US, the entire prize amount is added to the recipient's taxable income. This can push winners into higher tax brackets. By contrast, several European countries exempt the principal prize from immediate income tax. They focus instead on the future earnings generated by that capital. This structural difference means the timing and calculation of tax liability vary significantly across borders. Readers should note that these rules reflect current tax year standards and may change with legislative updates.

Understanding the Withholding Mechanism

In countries like Spain, Italy, and Portugal, the tax is withheld at the source. The lottery operator deducts the required amount before paying the winner. This simplifies the process for the recipient, who receives a net amount immediately. The tax-free threshold ensures that smaller prizes remain untaxed. Only the excess above this limit incurs the withholding charge. This method provides clarity on the final payout amount without requiring complex annual calculations. It contrasts with systems where tax is assessed after the money is received and invested.

Questions

Every figure on this page is computed by code from the 2026 federal and state brackets applied band by band and checked against a cumulative table. See the methodology.