Spanish Lotteries Now Have Taxes!

A lot of people in Spain started the new year with much festivities as Spain’s very generous lottery gave away €840 million in prizes at its El Nino draw on January 6. 

However, a bit of cloud threw a shadow across the celebrations as, for the first time ever, winnings of at least €2500 are going to be taxed 20 percent in Spain’s effort to drive down its public deficit.

Despite this, winners are still very much thankful for whatever amount is left to them as they feel it will still go a long way towards alleviating their financial difficulties. Since 2008, Spain’s population have been suffering the jarring effects of the global financial crisis and the property market crash which left millions people jobless.

One of the top prize winners said that part of the prize money will go towards helping a jobless son and a younger daughter’s studies, while another one claimed that the prize is a relief for the limited budget. 

The winners of the El Gordo lottery at the December 22 draw, on the other hand, have managed to escape the levy as it will only take effect this year. That means the top prize winners of €400,000 each will be able to keep the whole amount of their winnings. The El Gordo lotto, one of the biggest lotteries in the world, paid out a whopping €2.466 billion.