Spain aims to clamp down on taxing gambling winnings

The country’s tax agency has warned that gambling winnings must be included in tax returns.

Spain.- The Spanish tax agency has signalled that it will be getting stricter on ensuring that players report gambling winnings in their income self-assessments. Agencia Tributaria (AEAT) director general Soledad Fernández said that the agency would increase its scrutiny of profits from online gambling as well as cryptocurrency, foreign income and property rentals.

The agency has issued around 2.9 million notices to taxpayers, including 64,000 notices about gambling winnings. It’s the first time it has sent such warnings. Around 1 million notices were sent out regarding crypto profits.

In 2022, rules were changed to require the disclosure of all gambling winnings. Previously the threshold that required disclosure was €300.

The tax rate for gambling winnings follows a tiered system. Sports betting and online gambling winnings are taxed at 19 per cent on the first €12,450, 24 per cent up to €20,200, 30 per cent to €35,200, 37 per cent on up to €60,000, and 45 per cent on all winnings over that.