Understanding Gambling Taxes in Spain: Key Facts for Expats
Do you live in Spain and enjoy online betting? Understanding how the Spanish Tax Agency (Hacienda) treats your winnings is crucial to avoid unexpected fines. Whether you are an expat, a digital nomad, or a retiree, gambling winnings are considered taxable income and must be declared in your annual income tax return (IRPF).
Progressive Tax System
In Spain, gambling tax isn't a flat rate. It follows a progressive system, meaning the more you earn (from both your job and your bets), the higher the percentage you pay.
Losses Are Deductible
You can deduct your losses from your winnings, but you can never declare a "negative balance". Excess losses cannot reduce tax on your salary.
The Tax Thresholds: When Do You Have to Declare?
Most expats are confused about when they must report winnings. As of 2025, you generally must file a tax return if:
- Your net profit from gambling exceeds €1,000 (if you also have a salary or other income).
- Even if you win less, if your total annual income exceeds €22,000 from a single payer, every cent of your betting profit must be included.
- Tax declarations happen during "Renta" season (April to June each year).
Bookmakers Don't Withhold Tax
Unlike some countries, Spanish bookmakers do not automatically withhold tax on your winnings. It is your responsibility to save a portion of your profits and declare them during the Renta season.
