# Spanish El Gordo Christmas Lottery (The Fat One)



## nandnjudge2 (Oct 5, 2008)

Does anyone know if it is legal for a Portuguese resident to buy tickets in the Spanish El Gordo Christmas Lottery (The Fat One) and what are the taxation implications should there be a substantial win?

I ask this question because I live on the Portuguese Spanish border and a number of Expat’s are interested in forming a small syndicate, so before we dive in head first it would be nice to find out more.


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## canoeman (Mar 3, 2011)

Because of the unique way El Gordo is played (the expensive tickets are broken down into 10 smaller tickets), it can be quite sociable to play the Spanish Christmas Lottery. Read on for details:
On Your Own - If you are in Spain before December 7, go into an official 'Loteria Nacional' office - every town will have one. You don't need to buy a whole ticket, but if you don't and your ticket wins, you'll be sharing your winnings with a stranger! Tickets go on sale in the summer.
With Friends - Buy a whole ticket with friends and share out the decimos amongst yourselves. As everyone gets their own decimo, there can be no cheating - everyone gets their share!
At a Bar in Spain - If you see a number written in a window, enquire to see if they have any tickets left. Then chat with your new found friends over a beer about how you would all spend your winnings!
Example of a Spanish Lottery Ticket May be Won

You buy two decimos.
Person A buys three decimos.
Person B buys five decimos.
Your ticket wins 1,000€.
You win 200€.
Person A win 300€.
Person B win 500€.

Anyone can play, as Spain has introduced a Lottery Tax from next year I believe it's deducted at source so that's not a problem but Portugal Tax Rules

" income earned in Portugal in the form of prizes or winnings from competitions, games or gambling is subject to taxation. However, an exemption applies to lottery winnings from Euromilhões e Liga dos Milhões,_(although this will be taxed from Jan2013)_ lotteries and games organised by the Santa Casa da Misericórdia de Lisboa, an entity carrying out activities of social interest."
Portugal was taken to ECJ over taxing foreign lottery wins but only changed Law for Euromillion which they've altered again

_"Following the reasoned opinion sent to Portugal y the European Commission in September 2008 (IP/08/1355), Portugal amended in December 2008 its legislation and extended the tax exemption to winnings from the State lotteries which are part of the European Euromillions network (i.e Euromillions lotteries from Belgium, France, Ireland, Luxembourg, Portugal, Spain, United Kingdom and Switzerland). However, Portugal did not extend the tax exemption to all foreign state lotteries: the winnings in respect of the vast majority of other state lotteries organised in other EU Member States and EEA countries, which are not part of the Euromillions network, continue to be taxed in the hands of Portuguese residents."_

you need an accountant as Portugal has a Tax Treaty with Spain then same money shouldn't be taxed twice but does this apply to Lottery winnings?


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