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V0228-22 9 February 2022 · 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 query was raised regarding the taxation of prizes won from online and land-based sports betting. 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 gains obtained within the same tax period.

The question raised

Taxation in the Personal Income Tax (IRPF) of prizes obtained from sports betting, carried out both online and in betting venues.

The DGT's ruling

Prizes from games of chance, skill, and luck are capital gains as they imply variations in assets that are not qualifying as income. Losses in gambling are only computed as capital losses if they do not exceed the gains obtained from gambling in the same tax period. Losses derived from games subject to special taxation are not computed. The calculation of gains and losses is carried out globally within the tax period.

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