Don't spend it all before you pay the taxman. Calculate your net winnings instantly.
Winning the lottery feels like free money, but the government treats it as a taxable event. In Spain, an automatic levy of 20% is applied to all lottery prizes provided by SELAE (Loterías y Apuestas del Estado) that exceed €40,000. This amount is deducted directly at the source before the money even hits your bank account. This means if you win a €400,000 'Gordo' tenth (décimo), you won't see the full amount. This calculator breaks down exactly what is tax-free, what is taxable, and the final net amount that enters your pocket.
It is important to note that while the prize itself is subject to this special 20% tax, it is generally exempt from standard personal income tax (IRPF) in the year you receive run. However, any *income* generated from that money in the future—interest from bank accounts, dividends from stocks, or rent from properties you buy—will be taxed as investment income. Knowing your true 'net' prize allows you to plan your financial future accurately, rather than overspending based on a gross figure you will never actually possess.
