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V0105-18 18 January 2018 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · ganancias patrimoniales

Sports betting prizes taxed as capital gains for Income Tax purposes

A taxpayer inquired about the taxation of winnings from sports betting conducted at physical premises. The Directorate General for Taxes (DGT) ruled that these prizes constitute capital gains and that gambling losses can only be offset up to the limit of the winnings obtained within the same tax period.

The question raised

Taxation in Personal Income Tax (IRPF) of the gains obtained from bets placed in said establishments.

The DGT's ruling

Winnings from sports betting are capital gains because they represent a variation in the taxpayer's assets not classified as income from human capital. Losses in gambling shall not be accounted for as capital losses if they exceed the winnings obtained from gambling in the same tax period. The calculation of these gains and losses is carried out on a global basis during the tax period. Gains that exceed losses are integrated into the general taxable base.

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