How much does the IRS keep of your Christmas Lottery 2025 prize?

have you won the Christmas Lottery 2025? We tell you exactly how much money you’re going to receive after the IRS applies withholdings.

The extraordinary Christmas Lottery 2025 draw has already distributed 2,772 million euros in prizes. But the important thing is not only if you have won, but how much you will really receive once taxes are deducted.

#Calculator: How much will I receive?

#How do lottery taxes work?

The first 40.000€ are tax-free. Above that amount, the tax office takes 20%.

#Example with El Gordo (400.000€)

1. Exempt portion: 40.000€
2. Taxable portion: 360.000€ (400.000€ - 40.000€)
3. Withholding tax: 72.000€ (20% of 360.000€)
4. What you receive: 328.000€

The withholding is automatically deducted when you collect. No need to do anything else or declare it on the income tax.

#Shared tenths

If you shared the tenth with other people, the 40.000€ exemption is shared among all.

Example: El Gordo between 4 people

• Each person has 10.000€ exempted (40.000€ ÷ 4)
• Each person receives: 82.000€ net

Important: You must document before the drawing who participates and with what percentage. If you don’t, the IRS may consider it a donation and apply higher taxes.

#Real examples of shared tenths

#Case 1: Family with El Gordo (4 siblings)

Situation: 4 siblings share the winning tenth of El Gordo (79432). Each put 5€.

Calculation:

• Total prize: 400.000€
• Exemption per person: 10.000€ (40.000€ ÷ 4)
• Gross prize per sibling: 100.000€
• Taxable per person: 90.000€
• Withholding tax per person: 18.000€
• Net prize per sibling: 82.000€

What you should do: Go all together to the bank with photocopy of the tenth copy where your names and percentages are stated. The bank should directly transfer 82.000€ to each of you.

#Case 2: Office with 2nd Prize (10 companions)

Situation: 10 co-workers share 70048. Each contributed 2€.

Calculation:

• Total award: 125.000€
• Exemption per person: 4.000€ (40.000€ ÷ 10)
• Gross prize per person: 12.500€
• Taxable per person: 8.500€
• Withholding tax per person: 1.700€
• Net prize per person: 10.800€

#Case 3: Pair with 3rd Prize (90693)

Situation: Couple shares tenth of 90693. Each put 10€.

Calculation:

• Total prize: 50.000€
• Exemption per person: 20.000€ (40.000€ ÷ 2)
• Gross prize per person: 25.000€
• Taxable per person: 5.000€
• Withholding tax per person: 1.000€
• Net prize per person: 24.000€

#Mistakes that can cost you dearly

❌Not documenting before the draw If the IRS considers that there has been a donation, you could pay Inheritance and Gift Tax, which can be as high as 34%.

❌ One person collects everything and distributes afterwards This is considered donation. The person who collects pays tax on 400.000€, and then must pay Gift Tax when distributing.

❌ Make bank transfers after Post-collection transfers are donation trails for the IRS.

#✅ How to do it correctly

1. Before the draw: Photocopy of the tenth ticket with names, ID and percentages of each participant
2. Send by WhatsApp/email: The information to all participants before the draw
3. To the bank all together: Submit the documentation and directly collect each one’s share
4. Save receipts: The bank should give individual receipts to each participant

#What to do if you win

#Prizes up to 2.000€

• Prizes are collected at lottery offices
• No withholding taxes

#Prizes above 2.000€

• Collected at banks
• Automatic withholding if over 40.000€
• Bring ID and original tenth prize
• If shared: go to the bank together

#Important dates

• Cashing from: December 22, 2025 (afternoon)
• Chargeable until: March 22, 2026 (3 months)

#Tax tips for winners

#If you have won a large prize

Plan before you spend. A lottery prize can change your future tax situation, especially if you generate returns on the money.

Smart investments:

• Term deposits: Interest is taxed as income from movable capital (19-26%)
• Habitual residence: Exempt from capital gains if you reinvest in another habitual residence
• Pension plans: Deductible up to certain limits

#Common tax mistakes after winning

❌ Immediate donations Donating money to relatives immediately after cashing out can generate additional taxes.

❌ Do not consult with an advisor For awards above 100.000€, it is advisable to consult with a professional.

❌ Unplanned investments The future yields of the prize are taxable for personal income tax purposes.

#Tax optimization of the prize

✅ Diversify investments so as not to concentrate all future taxation in one year ✅ Consider buying a home if it is your primary residence ✅ Plan gifts with time and advice

#Complete tax table per award

% Cash = Total withholding / Gross award

#Frequently Asked Questions

Do prizes have to be declared on the income tax return? No. The 20% withholding is final and does not require declaration.

What happens if I lose the tenth ticket? Without the original tenth you cannot cash it. It is essential to keep it.

Do foreigners pay the same? Yes, tax residents in Spain pay the same withholdings regardless of their nationality.

Can prizes be seized? Yes Yes. Prizes can be seized for debts with the Treasury, Social Security or court judgments.Is there a time limit to collect? Yes. Prizes expire 3 months after the draw (March 22, 2026).

Can I cash in the prize if I am not the original purchaser? Yes, if you have the physical tenth and can prove your identity. The bearer ticket is valid.

#Important Tax Calendar

• 22 December 2025: Drawing and collection available from the afternoon
• 31 December 2025: Prizes do not affect 2025 declaration
• April 2026: 2025 income tax campaign (prizes are NOT declared)
• 22 March 2026: Deadline to collect prizes

#Do I have to declare small lottery prizes?

No, no lottery prizes are declared on income, regardless of the amount. This includes:

• Refunds (20€)
• Approximations (100€, 200€)
• Hundreds (100€)
• Bits and other small prizes

The only exception are prizes greater than 40.000€, which have automatic withholding, but are also not declared.

#What to do if you lose the winning tenth?

Bad news: no physical décimo, no prize. The National Lottery does not admit:

• Photocopies
• Photos of the tenth ticket
• Participaciones without the original tenth
• Damaged unrecognizable tickets

Prevention tips:

• Keep the tenth copy in a safe place
• Make a photocopy before the drawing (for your control, it is not valid for cashing)
• Do not carry it with you the days after the draw

#Numbers close to the Gordo: do I have something?

If your number is close to 79432 (El Gordo), you could have a prize:

• Gordo Approximations: 79431 and 79433 → 2.000€ (without tax)
• Centenas del Gordo: All numbers ending in 432 → 100€
• Reintegros: Numbers ending in 2 → 20€

#How do I know if my number has a prize?

1. Official list: Check the Loterías y Apuestas del Estado website
2. Administraciones: Ask at any lottery administration
3. Official apps: Use the official Loterías app

#Scams related to lottery prizes

⚠️ Beware of these common scams:

#Fake calls

“You’ve won the lottery, pay fees to collect.” False. Real prizes do not require prepayments.

#Fake SMS or emails

You will never be contacted by SMS/email to report prizes. Only the physical tenth is valid.

#Buying of “winning” tickets

People who try to sell tickets claiming that “they are going to win”. Impossible to know the numbers before the draw.

#What to do with the prize money?

#If you have won El Gordo (328.000€ net)

Conservative option:

• Term deposit: 4-5% p.a. = 13,000-16.000€/yr
• Government bonds: Similar return, higher security
• Housing account: If you plan to buy house in 4 years

Balanced option:

• 50% deposits/bonds (security)
• 30% mixed mutual funds
• 20% for expenses/whims

Frequent errors:

• ❌ Spending it all immediately
• ❌ Investing everything in one product
• ❌ Making large donations without getting advice

#If you have won smaller prizes (20.000€-100.000€)

Recommended priorities:

1. Emergency fund: 6 months expenses
2. Expensive debts: Credit cards, consumer credit
3. Investment: What’s left over, diversified

#Multiple winning tenths

What if you have multiple winning tickets?

Each tenth is considered independent for tax purposes:

• Multiple fourth prizes: Each exempt (20.000€ x tenths)
• Fat + other prizes: Added together to calculate total withholding
• Different draws: Calculated separately

Example: Gordo (79432) + Fourth prize (78477)

• Jackpot: 328.000€ net
• Fourth prize: 20.000€ net of tax
• Total: 348.000€

#Prizes and inheritance: what happens if the winner dies?

If the winner dies before collecting:

• Heirs can collect the prize
• Must present death certificate
• The prize is part of the inheritance
• Taxable for inheritance tax purposes

Periods: The 3 months of validity of the tenth prize continue to run after death.

#Comparison with previous years

Historical holdings:

• 2020-2025: 20% over excess 40.000€
• 2018-2019: 20% over excess of 20.000€ (harder)
• 2013-2017: 20% over excess 2.500€ (much, much harder)

El Gordo Evolution:

• 2025: 79432 → 328.000€ net
• 2024: 72480 → 328.000€ net
• 2023: 88008 → 328.000€ net
• 2022: 05490 → 328.000€ net
• 2021: 86148 → 328.000€ net

Retention remains stable from 2020.

#Administrations that give out the most prizes

Historically, these administrations have distributed more Gordos:

• Madrid: Puerta del Sol, Gran Via
• Barcelona: Las Ramblas, center
• Valencia: Historic center

But statistically all have the same probabilities. It’s pure chance.

#Future draws: when is the next one?

Next major draws 2026:

• 6 January: El Niño draw
• February-November: Monthly drawings
• 22 December 2026: Next Christmas Drawing

Real odds:

• Jackpot: 1 in 100,000 (0.001%)
• Any prize: 1 in 3 approx

#Myths and realities about the lottery

❌ Myth: “Low numbers come up less.” ✅ Fact: All numbers have exactly the same probability

❌ Myth: “If I buy a lot of tenths I have a better chance of the Gordo” ✅ Reality: each tenth is independent. More tenths = more chances, but still extremely unlikely

❌ Myth: “There are ‘hot’ numbers that come up more.” ✅ Reality: Every draw is completely random

❌ Myth: “It’s better to buy from administrations that have given out the Gordo before” ✅ Reality: Each draw is independent. Administrations do not influence the numbers

❌ Myth: “Repeated numbers have lower odds” ✅ Fact: Coming up with the same number two years in a row has the same probability as any other combination

The 2025 Christmas Lottery draw is now history. If you’ve been lucky, you now know exactly how much you’ll receive and how to fiscally optimize your prize. If it wasn’t your year, remember that at BeeL we help you optimize your finances throughout the year, not just at Christmas.