If you play your own national lottery and make a win, the question of taxes depends on the laws of your country. In some countries, you have to pay taxes on lottery winnings above a certain amount, while in others lottery winnings are tax-free. However, you should be aware that you almost always have to pay taxes later on winnings such as interest that are earned on the lottery winnings. The same applies, of course, if you open a business with your lottery winnings. In the UK, you do not have to pay taxes on lottery winnings.
Buy tickets for a lottery abroad
If you buy a ticket for a foreign lottery online you might have to expect that taxes will be deducted from your winnings directly in the country of the lottery. However, it is very rare that you will have to pay tax on your winnings again in your own country. This is because most countries have agreements among themselves against double taxation.
However, if you play a lottery from a country that does not tax lottery winnings, you only have to worry about the tax laws for lottery winnings in your own country. Tip: if lottery winnings are taxed in your country, then if you win a lottery in a country of your choice (without tax on lottery winnings), you could open an account in that country. Then you could have the winnings paid out to this account.
Which foreign lotteries are tax deducted immediately?
In some countries, taxes are deducted immediately from the winnings. These include the USA – 25% is withheld immediately from larger lottery winnings. If the winner is a foreigner, then the tax rate is 30%.
Taxes at Powerball and Megamillions USA
As stated above, if you play Powerball as a foreigner, you will not be paid the full amount. The lottery commission retains 30% and transfers this amount to the tax authorities.
Taxes at Euromillions
No tax is deducted for winnings at Euromillions. We buy these tickets in Austria and lottery winnings are tax-free there. Only the taxes that apply in the country where you live apply.
Taxes at Eurojackpot
We buy your tickets in a country where no taxes are applied to lottery winnings, so again you only have to tax the winnings according to the tax laws in your country of residence.
Taxes on Superenalotto Italy
In Italy, a 12% tax is levied on major lottery winnings.
Taxes in Spanish lotteries
In Spain, the tax on lottery winnings is 20%, with winnings up to €2500 remaining tax-free.
Other European Countries
As far as the tax situation in other European countries is concerned, we recommend researching on the Internet. There you will quickly find the necessary information.
Taxes on lotteries from Australia
Australian tax laws state that lottery winnings are not taxed.
