There is very little left for the traditional Christmas Lottery Draw. Surely many will be overflowing with excitement at the possibility of winning one of the great prizes that are distributed on December 22 and therefore, they want to know how to proceed when it comes to depositing or managing that money. Here we leave you some tips to know what steps to take and how to optimize the profit both from a financial and tax point of view.
Is there a deadline to enter the Christmas Lottery prize?
Yes, there is and it’s the day March 22. From State Lotteries and Betting, special emphasis is being placed on remembering that the prizes have an expiration period of three months and that therefore they must be claimed before March 22, 2023. According to the state company in charge of managing the Draw of the Christmas Lottery, each year around 30 million in prizes and refunds go unpaid.
Where can I collect a winning tenth?
Christmas Lottery prizes can be collected from the same afternoon as the draw. If the prize is less than 2,000 euros, it must be collected in one of the 10,600 administrations of the Lottery commercial network and they can be materialized either in cash or even via Bizum. If the prize exceeds that amount, the way to collect it is to go to one of the authorized financial entities whose list can be consulted on the website of State Lotteries and Betting.
If you are not a client of the entity, you do not have to open an account at that bank and you can collect the prize by means of a bearer check or by means of a transfer to the entity of which you are a client.
What documentation must I present to collect the prize?
For enter the prize It is absolutely necessary to present the tenth or the purchase receipt that proves its ownership. If the tenth has suffered some type of accident and is damaged, what you must do is go to one of the State Lottery and Betting points of sale, fill out the ‘Prize Payment Request’ form, sign it and provide the tenth. deteriorated, which will be sent to Lotteries for authentication.
How do I prove that I have a share of a winning tenth?
The tenths are bearer documents and only the person who has the ticket in their possession has the right to receive the prize. How then can I prove that I have participation in a prize-winning competition? To avoid problems, State Lotteries and Betting recommends proving the distribution of shares in writing and with the signature of the retainer to avoid the possibility of the prize holder attempting to keep the entire prize. Sharing the prize with your partner can also be problematic. In that case, it is convenient to know that if the marriage is in community, 50% is distributed to each one. In the event that the economic regime is one of separation of assets, the prize belongs to the person who purchased it, unless it is proven that both of them bought the number halfway.
How many taxes do you have to pay to the Treasury?
The prizes Below 40,000 euros are exempt. If your tenth corresponds to one of the three major prizes in the Christmas Lottery Draw, you will have to settle accounts with the Treasury. The Lottery Prize Lien obliges you to pay 20% of the amount that exceeds those 40,000 euros.
If you have a third prize, and receive 50,000 euros for your tenth prize, you will have to pay 20% of the 10,000 euros that exceed that threshold; If you have a tenth of the second prize, rewarded with 250,000 euros, you will pay taxes on 210,000 euros; and if fortune smiles on you with a tenth of the Christmas Gordo, paid with 400,000 euros, your tax bill will be 20% of 360,000 euros.
There is strategies that allow you to reduce that tax bill. The Laguinda ‘broker’ offers the option of formalizing an insurance contract that covers this tax contingency for an amount of three euros. The insurer assumes that tax bill and reimburses it to the winner, who the following year, of course, will have to declare that amount in personal income tax. The maneuver allows you to save at least half of that tax bill.
What to do with the money won in the Christmas lottery?
The options are multiple: shore up savings, pay off the mortgage, pay debts, invest… If you choose to save, opening a fixed-term deposit with 100,000 euros can give you 30,000 euros in returns over a period of ten years; You can also opt for variable income, which is riskier but promises higher returns. Another option, very classic, is real estate investment. The slightly more than 300,000 euros net that you can obtain from a tenth prize awarded with El Gordo makes it difficult to maneuver in Madrid or Barcelona, the most profitable markets, but they can give you access to some assets in other territories.
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