Spain’s Ministry of Finance to set gambling tax declarations at €300

Spain’s Ministry of Finance is reported to want to amend a tax module to ensure the disclosure of gambling prizes/winnings under €300. 

The planned amendment was disclosed via a proposal made open to the public, in which the Ministry detailed its intentions to ‘fix a deficiency’ in income declarations submitted to AEAT – Spain’s National Tax Agency.

The Treasury seeks to amend tax Module 190 related to “personal income declarations for business, economic, gambling and capital gains” to ensure that prizes below €300 are disclosed to AEAT.

Spain’s current tax code accounts for two types of gambling declarations, one for prizes from state lotteries such as ONCE and SELAE.  Meanwhile, a separate form is required for winnings taken from casino games and sports betting.

At present, Spanish tax laws impose a 20% tax on lottery winnings exceeding €2,500 that is applied to a personal income exemption of €40,000 per year.

Meanwhile for sports betting and casino, a four-tier framework is applied which consists of a base rate 19% on winnings up to €12,450, a secondary tier of 24% between €12,450-to-€20,200, followed by 30% on €20,200 to €35,200, and a final top tier charge of  37% applied on all other winnings/prizes.   

Module 190 ensures that Spanish citizens disclose to AEAT all gambling winnings, except for prizes below €300 that have remained unaccounted to date. 

The Ministry explained that it wanted to amend the tax module for the fiscal year of 2022, to be declared in 2023.