The tax regime for sports betting can be confusing on many occasions. If you are an online gambling player, we tell you what earnings to declare to the Tax Agency and how to avoid tax penalties.
On April 7, the 2021 Income Declaration campaign begins. A controversial issue for all Spaniards, but many more for sports betting users who do not know what earnings to declare to the Tax Agency.
You may also be interested: Complete guide on the deadlines to present your personal income tax in the 2021 Income Declaration
If you are a regular user in online casinos or a poker player, we will tell you what kind of economic benefits you should declare to the Treasury to avoid tax penalties.
Do I have to declare my gambling winnings to the Treasury?
Depends. Not everyone is obliged to declare sports betting to the Tax Agency, but be careful because the Personal Income Tax law establishes cases where the benefits of sports betting must be declared to the Treasury.
When should I report my sports betting winnings?
The Personal Income Tax requires declaring sports bets when a profit is obtained in an online game or another gain in equity or income from movable capital exceeding 1,6000 euros.
Also read: Complete guide on how to pay less to the Treasury in the next income statement
In addition, it is also required to declare to taxpayers the profits of sports bets when profits are obtained above 1,000 euros, as long as income from work is received in an amount greater than 22,000 euros or 14,000 euros in the case of having several payers.
I make sports bets, how much should I pay to the Treasury?
Taxing the winnings in sports bets, in physical betting houses or online, is linked to the IRPF traces of each year. In this sense, the Ministry of Finance has not presented tax news in 2021 regarding the sections of Personal Income Tax (IRPF).
I am a gambling player, what income tax will correspond to me in 2021?
Personal income tax contains the following five sources of income: income from work, income from movable capital, income from real estate capital, income from economic activities and capital gains and losses. This last point includes sports betting and other online games such as casino or poker.
From 0 to 12,450 euros: 19%
From 12,450 to 20,200 euros: 24%
From 20,200 to 35,200 euros: 30%
From 35,200 to 60,000 euros: 37%
More than 60,000 euros: 45%
