What to do if you win the Christmas lottery in Andorra?
The Christmas holidays are starting and with them arrive the big lotteries of "El Gordo de Navidad", "El Niño" and "La Grossa", among others. And as every year someone has to win, what happens if a resident of Andorra chooses the right number?
The prizes have a deadline of three months to cash for money and can be charged from the day of the draw. The collection is made through a bank deposit regardless if the account is Spanish or foreign.
Since 2012, the Public Treasury of Spain retains 20% of the prize when it is equal to or greater than € 2,500. The prize, therefore, results in 80% of the total amount. The application of the 20% retention in Spain is automatic and is deducted directly from the prize.
If the winner is a tax resident of Andorra, with the entry into force of the double taxation agreement between the Principality of Andorra and Spain, the winner is no longer taxed in Spain and the tax obligations are transferred to Andorra. The winner and tax resident of this country can recover the retained tax through a procedure that must be submitted to the Spanish Tax Administration (AEAT) and, subsequently, the prize will be subject to Andorran taxes that are only a 10% of the profit.
From IS21 we wish you the best of luck with the Christmas lottery and very happy holidays!