Sharing a lottery ticket among family, friends, or coworkers is a common practice, but the way to claim the prize can have tax consequences if it is not properly accredited who its owners were. The key is to demonstrate from the moment of collection that there are several beneficiaries and what part corresponds to each one, so that the subsequent distribution of the money corresponds to the prize won by each participant and cannot be confused with a free transfer of funds. The Tax Agency requires identifying the winners of the prizes subject to the special tax, and when there is a single beneficiary or manager in charge of the collection, they must be able to prove who the holders were and what their percentage of participation was.
All owners must be identified
When a shared ticket wins a significant prize, the simplest thing is that all holders are listed as beneficiaries from the moment the collection is processed.
Lotteries and State Betting indicates that, for larger prizes that must be collected through a collaborating banking entity, all participants must go to identify themselves. If the number of winners is high, they can appoint a representative to carry out the procedures, although the power must be formalized before a notary.
This procedure makes it clear from the beginning that the prize does not exclusively belong to the person who physically holds the ticket, but to all those who had acquired a share.
The mistake is in claiming it as if it were from a single person
That a single person is materially in charge of managing the prize does not automatically convert the subsequent distribution into a donation. The Tax Agency itself contemplates that there may be a single beneficiary or collection manager, but requires that they be able to prove that the money was distributed among the true holders of the ticket.
To avoid problems, it is essential to keep evidence that the ticket was shared before the draw: photographs of the ticket, WhatsApp messages, transfers, payment receipts, or any document where the participants and the percentage that belongs to each one appear.
The situation would be different if a person were really the sole owner of the ticket and, after winning, decided to give part of the money to family or friends. In that case, it would no longer be distributing a previously shared prize, but rather making a transfer of money that could be subject to the rules of the Inheritance and Donations Tax.
The 40,000 euros exempt are also shared
The prizes from the State Lotteries and Betting of up to 40,000 euros per ticket or bet are exempt from the special tax. When the amount exceeds that figure, only the amount that exceeds that limit is taxed, on which a withholding of 20% is applied.
In a shared ticket, those 40,000 euros exempt do not fully correspond to each participant. The exemption is distributed among all in proportion to their share in the ticket.
For example, if four people equally own a ticket that won 60,000 euros, the 40,000 euros exempt are shared proportionally among the four. The remaining 20,000 euros are subject to tax, and the total withholding amounts to 4,000 euros. The net prize would therefore be 56,000 euros, 14,000 euros for each participant.
Where to collect a shared ticket
The procedure also depends on the amount obtained. SELAE considers prizes less than 2,000 euros as minor prizes, which can be collected at the points of sale of its commercial network. Prizes equal to or greater than that amount must be paid through authorized financial entities.
In shared prizes of greater amounts, it will be precisely at the bank where the beneficiaries must be identified. The entity will also request the necessary documentation to comply with tax obligations and anti-money laundering regulations.
A photo and a message can avoid problems with the Tax Agency
Precaution should begin even before knowing the result of the draw. When several people jointly buy a ticket, it is advisable to photograph the ticket and write down who participates and with what amount. This way, if the prize arrives, it will be much easier to prove that the ownership was shared from the beginning.
The fundamental rule is that the Treasury can follow the trail of money and know who the real winners were. If the participants are identified and it can be demonstrated what percentage belonged to each one before the draw, the money received by each member of the group corresponds to their share of the prize. The problem may arise when there is no evidence of the prior distribution and a single person collects the ticket as their own to later distribute the money among third parties.