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V0375-15 2 February 2015 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · ganancia patrimonial

Foreign lottery prizes taxed as capital gains in year of demand

A Spanish resident asks how to tax a 2013 US lottery prize from a 2012 draw. The DGT states it is a capital gain and is attributable to the year the prize becomes demandable.

The question raised

Subjectivity of the prize received to Personal Income Tax and the period to which it must be imputed.

The DGT's ruling

The lottery prize constitutes a capital gain that is included in the general tax base. Its temporal imputation corresponds to the period in which the change in assets occurs, that is, when the prize becomes enforceable according to the rules of the game. Legal fees cannot be accounted for as a capital loss as they are considered consumption income. It is possible to apply the deduction for international double taxation pursuant to Article 80 of the Personal Income Tax Law.

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