First €10,000 of lottery winnings to be tax-exempt

THE first €10,000 of lottery winnings will be tax-exempt from this year, rising to €40,000 by the year 2020.

Opposition parties UPN, from Navarra, Ciudadanos, and the Basque National Party (PNV) have voted in favour of a move by the right-wing PP-led national government to raise the maximum exempt from tax from €2,500 to €10,000.

Until a few years ago, lottery winnings were not subject to tax at any amount, but the PP brought in a law which stipulated that the first 21% would be stopped on all winnings exceeding €2,500.

Next year, 2019, will see the tax-free threshold double to €20,000, then it will double again in 2020 to €40,000.

This move is part of the ongoing discussions surrounding the 2018 budget, which is due to be debated later this week in Parliament.