Winning EuroMillions in Portugal may seem like a dream, but the announced value does not always reach the account of national gamblers. Although the awards are equal throughout Europe, the Portuguese are one of the few who do not receive the total value, losing a significant slice to the state coffers.
Higher rates in Europe
According to the contact, the Portuguese pay one of the most penalizing rates among the nine participating countries in Euromillions. This difference was evident in the draw last Friday, in which seven gamblers hit the second award, valued at 2,737,810.69 euros. Two of the winners are resident in Portugal.
According to the same source, the remaining winning gamblers will receive all the prize. Already the two Portuguese winners will take home only 2,190,248.55 euros, due to the application of the 20%seal tax, which removes more than half a million euros for each of the winners.
Awards Tax in Portugal
In Portugal, all social games awards greater than five thousand euros are subject to a fixed rate of 20% seal tax, as the contact indicates. This taxation is automatically applied by the state and affects not only Euromillions, but also other games with high awards.
According to the same publication, this rate is one of the lowest percentage terms among the countries that charge prizes tax, but the amount from which it is applied, only five thousand euros, makes Portugal one of the most penalizing countries for the winners.
This reality contrasts with that of other European countries where the tax does not even exist. In Luxembourg, France, Belgium, the United Kingdom, Ireland and Austria, the EuroMillions winners always receive the total value of the awards, as the contact stresses.
Comparisons with other countries
The same source adds that, although Spain and Switzerland also tax EuroMillions, apply more favorable rules to gamblers. In Spain, the 20% tax is only levied on the premium part that exceeds 40 thousand euros, which means that a significant portion of the amount won remains exempt.
In Switzerland, according to contact, taxation is even more selective. The 35% rate only applies to prizes that exceed one million Swiss francs, or about 1,065,800 euros. In addition, the first thousand Swiss francs are always exempt.
These differences make Portuguese award -winning the most injured among the participating countries in Euromillions, a situation that has been criticized by experts and gamblers, although tax rules remain unchanged.
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Value that goes to the state
By way of example, the value that the Portuguese State will raise the tax on the two second prizes of the last draw exceeds 1.09 million euros. This amount enters directly into the public coffers, without any announced destination, as the contact says.
The same source adds that this difference in treatment has raised questions among Portuguese players, which question if it is possible to record bets in other countries to avoid tax.
However, according to current legislation, the prize is taxed in the country where the bet was recorded, regardless of the player’s nationality.
Thus, if a Portuguese buy the bulletin in France or Luxembourg, and settle in a high prize, it may receive the total amount, free of taxes. However, if the bet is registered in the national territory, the tax must apply, as the same source confirms.
Who wins, loses
Euromillions remains the most popular European game and the one that offers the highest awards. However, as the contact recalls, not all the winners take home what they imagine when they see the numbers drawn.
Among the nine countries where EuroMillions are played, Portugal stands negatively by the fiscal burden applied to prizes that, at the outset, are announced as equal throughout Europe. This uniformity is not in practice, since the tax authorities of each country apply different rules.
The current situation causes players in Portugal to have less 20% of the value of the major awards. Even in cases of Jackpot, the Portuguese winner, if he existed, would see a significant part to be diverted to the state.
This scenario led many gamblers to show discontent on social networks and discussion forums, although, as explained by, this tax is provided by law and does not depend on the Santa Casa da Misericórdia of Lisbon, which only generates the distribution of prizes in the country.
The seal tax in social games has been introduced as a measure to increase state revenue and has been applied since 2013, remaining in force to this day without changes. For now, there are no indications that the government intends to review this rate.
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