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V1187-18 9 May 2018 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · ganancias patrimoniales

Online gambling winnings taxed as capital gains; losses only offset gambling profits

A query was made regarding the Personal Income Tax (IRPF) treatment of gains and losses from online sports betting. The Directorate General for Taxes (DGT) ruled that winnings are classified as capital gains and that gambling losses can only be offset against gains obtained within the same tax period.

The question raised

Taxation in Personal Income Tax (IRPF) of the aforementioned losses and gains.

The DGT's ruling

Online sports betting prizes constitute capital gains as they involve variations in assets that are not classified as income. Gambling losses are not computed as capital losses if they exceed the gains obtained from gambling within the same tax period. The calculation of these gains and losses is performed on a global basis during the fiscal year. For reporting purposes, the section for prizes from participation in games, raffles, or random combinations must be completed in Form 100.

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