Lottery & Non-Residents How to Recover Withheld Taxes
Content:
Winning the lottery sounds like financial freedom, but if you're not a tax resident in Spain, that joy might come with a tax surprise. The prize is automatically subject to a 20% withholding, and getting that portion back can be tricky if you don’t take the right steps.
Here we explain step by step what happens and how to manage it.
Who pays taxes in Spain even if they are not tax residents?
State Lottery and Betting prizes (Lotería Nacional, Euromillones, ONCE, Cruz Roja) are subject to a Special Tax both for residents and non-residents without a permanent establishment in Spain.
This means that when you collect your winnings, 20% is automatically withheld on the amount exceeding the first €40,000 exempt, as established by Law 16/2012 and current regulations of the Spanish Tax Agency.
How does it work if you’re not a resident?
The withholding applies the same whether you’re registered (empadronado) in Spain or not. But there’s an important detail: if you’re not a tax resident in Spain, and your country has a double taxation treaty with Spain, you could claim a partial or full refund of the amount withheld.
The problem is that to make that claim, you need to have a NIE (Foreigner Identification Number).
Don’t have a NIE? You won’t be able to recover the tax
This is the critical point that many don’t know:
without a NIE, you can’t file tax forms with the Treasury.
And without those forms, the 20% withholding becomes final, even if by treaty you have the right to a refund.
This is where we come in...
At InnoTaxes we help you to:
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Obtain your NIE even if you don’t live in Spain.
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Process your tax residency certificate in your country.
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Submit the appropriate forms to the Tax Agency.
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Claim what you are legally entitled to.
Request your personalized consultation here. And recover your money with full legal support.
How to claim if you already have a NIE
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Submit Form 210 to the Spanish Tax Agency (AEAT), proving your tax residency in another country.
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Provide the tax residency certificate issued by your home country.
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Attach documentation related to the prize, the withholding, and the payment.
This process takes time, but the Treasury may refund part or all of the 20% withheld, depending on the applicable tax treaty.
Quick sumary
| Prize won | Exempt | Taxable | Withholding |
|---|---|---|---|
| 100.000 € | 40.000 € | 60.000 € | 12.000 € (20 %) |
Does your country have a tax treaty with Spain? You might be able to claim part of those €12,000, if you act on time.
Conclusion
Winning the lottery is exciting. But if you don't live in Spain and don’t have a NIE, you could lose thousands of euros by not being able to claim back the withheld tax.
At InnoTaxes, we handle everything for you, from applying for your NIE to getting your tax refund.
Need help recovering your full prize?