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Taxes When Winning the International Lottery

by | Jun 11, 2025 | Eurojackpot, EuroMillions, General, La Primitiva, Lotto 6aus49, Lotto América, Lotto France, Mega Millions, Mega Sena, Mon & Wed Lotto, Powerball, Saturday Lotto, Set for Life (UK), SuperEnalotto, Thunderball, UK Lottery

What Taxes Are Paid When Winning the Lottery in Each Country? A Guide for International Players

Have you ever wondered how much of a big prize you would actually receive if you won the lottery in a country different from where you live? Although the prize amounts we see in draws are often spectacular, in many cases taxes can significantly reduce the final payout.

But not all countries apply the same tax rules—some even offer very favorable tax advantages.

In this guide, we clearly explain what taxes apply in the main countries and lotteries you can play online through our platform: lottohoy.com.

Are Lottery Prizes Taxed?

Yes, in many countries lottery winnings are subject to taxes. Some countries apply automatic withholdings at the time of payout, while in others, winners must declare the prize later.

It’s also important to check whether your country of residence has a double taxation treaty with the country where the ticket was purchased. This can help avoid paying tax twice on the same prize.

Taxes by Country for the Main International Lotteries Offered by LottoHoy

United States – Powerball, Mega Millions, Lotto America, and NY Lotto

In general, U.S. lottery prizes are subject to three types of taxes: federal, state, and local. However, when playing via LottoHoy, tickets are purchased in the state of Delaware, which does not apply state or local taxes on lottery prizes.

Therefore, only the federal tax applies, which currently means an automatic 24% withholding on the total prize.

This makes Delaware one of the most favorable states for claiming U.S. lottery prizes.

Spain – La Primitiva and El Gordo de la Primitiva

In Spain, lottery prizes over €40,000 are subject to a 20% automatic withholding. This tax is deducted before the winner receives the prize.

At LottoHoy, we only offer La Primitiva and El Gordo de la Primitiva, so our focus is limited to the taxation rules for these two draws.

United Kingdom – LottoUK, Thunderball, Set For Life

In the UK, lottery prizes are tax-free for British residents. That is, the winner receives the full amount. However, if you participate from abroad, you may be subject to your local tax laws.

Germany – 6aus49

Germany does not apply direct taxes on lottery winnings. However, if the prize generates interest or other financial returns, taxes may apply to those earnings.

France – Loto Français

France applies tax withholdings on prizes above certain thresholds, which may vary. For French residents, the tax is automatically deducted from the prize. If you’re playing from another country, taxation will depend on your own country’s laws.

Italy – SuperEnalotto

Prizes above €500 are subject to a 20% withholding, applied automatically before payment. This rule affects both Italian residents and international players.

EuroMillions – Tickets Purchased in Austria and the UK

At LottoHoy, EuroMillions tickets are purchased in Austria, where lottery prizes are tax-free.

Soon, our platform will also offer EuroMillions tickets purchased in the United Kingdom, with slight differences from Austria. Although the UK is no longer part of the EU, it continues to participate in EuroMillions and does not apply taxes on winnings for residents.

Therefore, the prize is paid in full. However, always check whether your country of residence requires you to declare the prize or pay additional taxes.

Brazil – Mega-Sena, Quina

Brazil applies a 30% withholding on all lottery prizes, regardless of the amount. This tax is deducted before payout, making Brazilian lotteries some of the most heavily taxed.

Australia – Oz Lotto, Powerball Australia, Saturday Lotto

In Australia, lottery winnings are not taxed. Winners receive the full amount, with no withholdings. This also applies to international players. However, always check if your country of residence imposes taxes after the fact.

What Happens If I Win from Another Country?

If you win a prize while playing a foreign lottery, tax rules may vary. Two main factors come into play:

  • The country where the ticket is purchased, which may or may not apply withholdings.

  • Your country of tax residence, which may require you to declare the prize or pay taxes, often as a capital gain.

Examples:

  • If you live in Latin America and win EuroMillions (ticket purchased in Austria or the UK), there are no taxes at the source, but you might have to declare the prize locally.

  • If you live in Europe and win Powerball or any U.S. lottery via LottoHoy (tickets bought in Delaware), only the 24% federal tax applies in the U.S., and you’ll need to check whether your country imposes further taxation.

Tips to Protect Your Winnings and Avoid Overpaying

  • Check the ticket’s country of origin, as some offer significant tax advantages.

  • Consult a tax advisor if you win a large prize. Every country has its own rules.

  • Your LottoHoy user account keeps all proof of ticket purchase to justify the origin of the prize.

  • Get informed before playing to avoid surprises when claiming your prize.

Conclusion

Winning the lottery is a dream that can change your life—but knowing the tax rules is key to making the most of your prize.

At LottoHoy, we give you access to the best lotteries in the world, and we handle your tickets from countries with favorable tax conditions such as Delaware (U.S.), Austria, or the United Kingdom (EuroMillions).

So if you win… you win more!