Spain Gambling Tax: Complete Guide for Bettors (2026)

Spain Taxes Gambling Winnings

Unlike the UK or Canada, Spain does tax gambling winnings. However, the system is more nuanced than simply taxing every euro you win.

Spanish tax law allows you to deduct gambling losses against winnings, and there are thresholds below which you may not need to file. Understanding these rules can significantly reduce your tax burden.

How the Spanish System Works

Gambling winnings in Spain are considered "ganancias patrimoniales" (capital gains) and are reported on your annual IRPF (personal income tax) return.

The key principles:

1. Net taxation: You're taxed on net gambling income (winnings minus losses)
2. Loss deduction: You can deduct losses up to the amount of your winnings
3. Annual calculation: Gains and losses are calculated over the tax year
4. Reporting thresholds: Small amounts may not require filing

This is more favorable than the US system, where recent changes limit loss deductions to 90% of winnings.

The Tax Rates

Gambling income in Spain is taxed at the savings income rates, which are progressive:

These rates apply to your net gambling profit after deducting losses.

Deducting Losses

Spain allows you to deduct gambling losses against winnings, which significantly reduces tax liability.

Example:

• Winnings in 2024: €15,000
• Losses in 2024: €12,000
• Net gambling income: €3,000
• Tax owed: €570 (19% of €3,000)

Without loss deduction, you'd owe tax on the full €15,000. With it, you're only taxed on your actual profit.

Important limitations:

• Losses can only offset gambling winnings, not other income
• You cannot create a gambling "loss" to reduce other taxable income
• Maximum deduction is the amount of your winnings (no negative gambling income)

Reporting Thresholds

You may not need to include gambling on your tax return if:

No filing required if:

• Your total income from all sources is under €22,000, OR
• Net gambling profits are under €1,000 and you have no other income requiring filing

Must file and report if:

• Net gambling profits exceed €1,000 (even with low other income)
• Net gambling profits plus other income exceed €22,000
• You have other filing requirements regardless of gambling

Even if you're not required to file specifically because of gambling, keeping records is wise in case of questions.

Online Gambling and Sports Betting

Online gambling winnings from DGOJ-licensed operators (those with .es domains) follow the same rules as traditional gambling.

Spanish-licensed operators report player activity to the Agencia Tributaria, meaning the tax authority knows your gambling history on regulated sites.

This includes:

• Sports betting (Bet365.es, Betfair.es, etc.)
• Online casino games
• Online poker
• Daily fantasy sports

If you gamble with unlicensed offshore operators, winnings are still legally taxable, but enforcement is more difficult. This doesn't mean it's legal to evade taxes; it means you're taking both legal risk (unlicensed gambling is prohibited) and tax risk.

Lottery Taxation: Different Rules

Spanish lottery winnings have their own tax regime, separate from other gambling.

For SELAE and ONCE lotteries (La Primitiva, El Gordo, Euromillones, etc.):

Example: El Gordo Prize of €100,000

• First €40,000: Tax-free
• Remaining €60,000: Taxed at 20% = €12,000
• Net prize: €88,000

The lottery operator withholds this tax automatically before paying your prize. You don't need to do anything; you receive your net amount.

This is different from regular gambling, where you're responsible for calculating and paying tax yourself.

Record-Keeping Requirements

To claim loss deductions, you need documentation. The Agencia Tributaria may request:

• Transaction records from gambling accounts
• Bank statements showing deposits/withdrawals
• Betting slips or account histories
• Records of cash gambling (casinos)

Licensed online operators provide annual summaries that detail your wins and losses. Save these for your records.

For casino gambling, keep any receipts or records you can obtain. Casino loyalty programs often track your play, which can serve as documentation.

Residency Considerations

These rules apply to Spanish tax residents. If you're:

A Spanish resident:

• Taxed on worldwide gambling income
• Can deduct worldwide gambling losses
• Must report all gambling regardless of where it occurred

A non-resident gambling in Spain:

• Generally not taxed on gambling winnings in Spain
• May face withholding on large casino prizes (which can sometimes be reclaimed)
• Subject to your home country's tax rules

A Spanish resident gambling abroad:

• Foreign winnings are taxable in Spain
• Be aware of potential double taxation
• Some countries withhold tax at source (US withholds 30%)

Practical Example

Let's walk through a realistic scenario:

Maria's 2024 gambling activity:

• Sports betting wins: €8,000
• Sports betting losses: €6,500
• Casino wins: €2,000
• Casino losses: €3,000
• Lottery win: €500 (under €40,000, so tax-free and separate)

Calculation:

• Total gambling wins: €8,000 + €2,000 = €10,000
• Total gambling losses: €6,500 + €3,000 = €9,500
• Net gambling income: €10,000 - €9,500 = €500
• Tax owed on gambling: €500 × 19% = €95

Maria's total tax on gambling is €95, not 19% of €10,000 (€1,900).

The €500 lottery win is separate and tax-free (under the €40,000 threshold).

Professional Gamblers

Spanish tax law doesn't have a clear category for "professional gamblers" like some countries. However, if gambling is your primary economic activity, you may be required to register as self-employed (autónomo).

This creates additional obligations:

• Social security contributions
• VAT considerations (usually exempt for gambling)
• Quarterly tax payments
• More detailed record-keeping

If you're earning significant, consistent income from gambling, consult a Spanish tax advisor about your obligations.

Payment and Filing Timeline

Spanish tax returns are filed annually, typically April through June for the previous year's income.

If you have significant gambling income:

• Keep records throughout the year
• Calculate net gambling income in January
• Include in your IRPF return (Modelo 100)
• Pay any tax owed by the filing deadline

There's no requirement for quarterly gambling tax payments for individuals, but withholding may apply in some situations (like large lottery prizes).

Common Questions

Can I deduct losses from previous years?

No. Losses can only offset gains in the same tax year. You cannot carry forward gambling losses.

What if I only gamble at casinos with cash?

The same rules apply. You're legally required to report winnings and can deduct documented losses. Enforcement is harder without paper trails, but the legal obligation exists.

Do I pay tax on free bets and bonuses?

The value of bonuses isn't taxed when received. However, winnings from bonus funds are taxed normally.

What about cryptocurrency gambling?

Crypto gambling adds complexity around the crypto itself (capital gains/losses) plus the gambling taxation. Winnings are still taxable; consult an advisor for the crypto specifics.

Can I offset gambling losses against my salary?

No. Gambling losses can only offset gambling wins, not other income sources.

Key Takeaways

• Spain taxes gambling winnings as capital gains at rates from 19-28%
• You can deduct losses against winnings in the same year
• Net gambling income under €1,000 may not require filing
• Lottery winnings have separate rules: tax-free under €40,000, 20% above
• Licensed operators report your activity to tax authorities
• Keep detailed records of all gambling transactions
• Residency determines whether Spanish rules apply to you
• Professional gamblers may have additional obligations

Sources:

• Agencia Tributaria - IRPF
• GM Tax Consultancy - Spain Gambling Tax
• DGOJ - Gambling Regulation