Spain's Tax Agency and the EuroMillions: when a jackpot becomes a nightmare

EuroMillions: the prize Spain's Tax Agency turns into an endless debt

Winning the EuroMillions is not the end of your tax troubles, it's the beginning. The 20% levy on the prize is only the first bite. Then come Wealth Tax, property tax, gift tax, inheritance tax... The list seems endless, and the Agencia Tributaria (Spain's tax agency) has no qualms about inventing new concepts to squeeze the winner.

A recent case shows just how far the tax collectors' creativity goes: a pensioner with a €974 pension and barely €1,500 in his account received a €7,000 demand because his home was not considered his primary residence — and the reason was that he used too little electricity. Yes, too little electricity. He even submitted documents from the police, but nothing doing: the money, and that was that. His account could not be garnished, but the tax office kept pushing.

The conclusion to be drawn is that the State considers everything to be its property, and only lets citizens temporarily believe it is theirs. You are taxed when you win it, when you spend it, when you save it, when you give it away and when you die. That is why some analysts recommend not leaving a single euro in Spanish accounts if there are disputes with the tax authorities, and others go further: if you hit the jackpot, pay the 20% and flee to Switzerland or any tax haven. But not everyone trusts that: a modest prize can be more vulnerable than a great fortune, and Swiss banking is not for everyone.

Meanwhile, the question remains open: how many times can the tax authorities charge you for the same money? The answer, according to those affected, is infinitely many.