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V3571-20 16 December 2020 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · ganancias patrimoniales

Income tax must be declared if sports betting winnings exceed the combined €1,000 limit

The inquirer asks whether they are required to file an income tax return due to winnings from sports betting. The DGT responds that these prizes constitute capital gains and, as they are not subject to withholding tax, the obligation to declare depends on whether the exclusion thresholds established by law are exceeded.

The question raised

Obligation to file a Personal Income Tax return due to the receipt of capital gains from sports betting.

The DGT's ruling

Prizes from games of chance, skill, and luck constitute capital gains as they involve variations in assets that are not classified as income. If the taxpayer only obtains these gains and has no other income, they shall not be required to file a tax return provided that the combined limit of investment income and capital gains does not exceed 1,000 euros per year. Since betting prizes are not subject to withholding tax, the exclusion limit set forth in Article 96.2 of the Personal Income Tax Law applies.

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