Withholdings on lottery prizes
Updated Jun 26, 20262 min read
Some lotteries deduct tax at source before sending us the prize. Here's a country-by-country summary.
How withholding works
When a lottery operator pays out a prize, the law of the operator's country may require them to withhold a portion as tax before the money leaves them.
A few common cases
- Spain (El Gordo, La Primitiva, Bonoloto): 20% withholding on prizes above €40,000.
- Italy (SuperEnalotto): 20% withholding on prizes above €500.
- United States (Powerball, Mega Millions): federal withholding of 24–30% on jackpot wins; some states withhold an additional state tax.
Rates above are operator policy and can change. The exact amount withheld is always shown on the prize receipt we issue, alongside the gross and the net.
Tax in your own country
Once the net is in your Lottofy balance, your obligations to your own tax authority depend on where you live. Some countries treat lottery winnings as taxable income; others don't. Lottofy cannot give tax advice, we provide every receipt and certificate the operator issues so you (or your adviser) have what you need.
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