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Spanish lottery player wins €123M Euro Millions jackpot

Topic closed. 25 replies. Last post 6 years ago by HaveABall.

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HaveABall's avatar - rocket

United States
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March 18, 2009
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Posted: May 15, 2011, 11:53 pm - IP Logged

if an American citizen won, he or she would have to pay the max federal income tax, as you mentioned 35%, plus state income tax. No, they won't have to pay taxes from Spain. According to wikipedia, the only country in Europe that taxes Euro Millions winnings is Switzerland.

If I was the winner, I'd collect the money anonymously, move to a tax friendly country and then renounce American citizenship. No way I'm giving the IRS $60+ million for something they had no part in whatsoever but then again, that's just me.

Thanks for responding, OwlCreekBridge.  Hurray!

All good points and I appreciate them!  The only problem would be that, I believe, all foreign countries require that lottery jackpot winner be a CITIZEN for at least ONE year; or else winner pays an "foreigner income tax" to the country PLUS an additional income tax to country (plus possibly state/providence/county income tax) that winner formerly resided in and/or were a citizen of.  So, if the foreign lottery only allows 1 year to claim the ticket, taxes would be impossible for a non-countrymen to avoid. It's a shame that the Wikipedia article left this KEY expensive information out of their information.  Wikipedia articles are often a crap shoot, since they are written by amateurs often, who don't care to research the BIG PICTURE, all angles of a subject to exhaustion.

Ah well, the crux of the complex income tax situation ... it is more expensive for an American [or any foreigner] to win a foreign country's lottery jackpot than their own country's lottery jackpot.  Plus, it appears that new citizenship/extradition often requires more than one year to obtain, or to receive notice if the country has declined.

Having several millions of dollars in my financial accounts means receiving several valuable services each day!

Disney

    OwlCreekBridge's avatar - Lottery-031.jpg
    lottoville
    United States
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    August 11, 2010
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    Posted: May 16, 2011, 12:28 am - IP Logged

    Thanks for responding, OwlCreekBridge.  Hurray!

    All good points and I appreciate them!  The only problem would be that, I believe, all foreign countries require that lottery jackpot winner be a CITIZEN for at least ONE year; or else winner pays an "foreigner income tax" to the country PLUS an additional income tax to country (plus possibly state/providence/county income tax) that winner formerly resided in and/or were a citizen of.  So, if the foreign lottery only allows 1 year to claim the ticket, taxes would be impossible for a non-countrymen to avoid. It's a shame that the Wikipedia article left this KEY expensive information out of their information.  Wikipedia articles are often a crap shoot, since they are written by amateurs often, who don't care to research the BIG PICTURE, all angles of a subject to exhaustion.

    Ah well, the crux of the complex income tax situation ... it is more expensive for an American [or any foreigner] to win a foreign country's lottery jackpot than their own country's lottery jackpot.  Plus, it appears that new citizenship/extradition often requires more than one year to obtain, or to receive notice if the country has declined.

    if this is true, it's news to me. I was under the impression the United States was one of the very few countries that tax lotto winnings. I know the US has a "foreigner income tax" for foreigners who win a jackpot in the US but I've never heard this about another country. I'm planning on playing a non-US lotto soon and there is always the possibility I might win something so any links or other information about a "foreigner income tax" on US citizens playing other countries would be appreciated.


      Canada
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      Posted: May 16, 2011, 12:12 pm - IP Logged

      Thanks for responding, OwlCreekBridge.  Hurray!

      All good points and I appreciate them!  The only problem would be that, I believe, all foreign countries require that lottery jackpot winner be a CITIZEN for at least ONE year; or else winner pays an "foreigner income tax" to the country PLUS an additional income tax to country (plus possibly state/providence/county income tax) that winner formerly resided in and/or were a citizen of.  So, if the foreign lottery only allows 1 year to claim the ticket, taxes would be impossible for a non-countrymen to avoid. It's a shame that the Wikipedia article left this KEY expensive information out of their information.  Wikipedia articles are often a crap shoot, since they are written by amateurs often, who don't care to research the BIG PICTURE, all angles of a subject to exhaustion.

      Ah well, the crux of the complex income tax situation ... it is more expensive for an American [or any foreigner] to win a foreign country's lottery jackpot than their own country's lottery jackpot.  Plus, it appears that new citizenship/extradition often requires more than one year to obtain, or to receive notice if the country has declined.

      This is not the case for Canadian lotteries. Anyone can play and win regardless of their citizenship or country of residence. No taxes are withheld by the Canadian government again regardless of their citizenship of country of residence. If an American citizen wins a Canadian lottery, they have to pay taxes to the US government but no taxes are paid to the Canadian government.

        OwlCreekBridge's avatar - Lottery-031.jpg
        lottoville
        United States
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        Posted: May 16, 2011, 3:31 pm - IP Logged

        This is not the case for Canadian lotteries. Anyone can play and win regardless of their citizenship or country of residence. No taxes are withheld by the Canadian government again regardless of their citizenship of country of residence. If an American citizen wins a Canadian lottery, they have to pay taxes to the US government but no taxes are paid to the Canadian government.

        this is useful information. The US IRS not only taxes US citizens for income made outside US soil but taxes non-residents for winning. I think the US is one of the very few countries in the world that does this. If there are other countries that do the same, I'd like to know.

          James1's avatar - 5599078405 12a562a9e7_t.jpg
          Florida
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          Posted: May 16, 2011, 7:57 pm - IP Logged

          this is useful information. The US IRS not only taxes US citizens for income made outside US soil but taxes non-residents for winning. I think the US is one of the very few countries in the world that does this. If there are other countries that do the same, I'd like to know.

          not if your from England or any other tax-treaty country

          say if you won $1 MM you can have your English buddy collect it tax free instead of you giving 60% of it away to IRS ...

          2014 Highest Winner: $500


            Philippines
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            May 17, 2011
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            Posted: May 17, 2011, 4:05 am - IP Logged

            WOW! So LUCKY! I want to win to become a millionaire also..

              rdgrnr's avatar - walt
              Way back up in them dadgum hills, son!
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              April 28, 2009
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              Posted: May 17, 2011, 10:16 am - IP Logged

              WOW! So LUCKY! I want to win to become a millionaire also..

              Welcome to Lottery Post jaylo!

              Best of luck to you!   LepThumbs UpYes Nod


                                                           
                                   
                                                       

               

               

               

               

                                                                                                                 

              "The only thing necessary for evil to triumph is for good men to do nothing"

                                                                                                          --Edmund Burke

               

               

                butterflykt's avatar - Lottery-043.jpg

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                Posted: May 17, 2011, 1:23 pm - IP Logged

                Congratulations to the winner.  I hope they enjoy the blessing!!!

                All things are possible to those that believe!!!!!!Wink

                  time*treat's avatar - radar

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                  Posted: May 17, 2011, 10:40 pm - IP Logged

                  Hmm, 60% the the IRS vs. 100% to the [suddenly-left-town-without-leaving-a-forwarding-addy] buddy. Crazy

                  In neo-conned Amerika, bank robs you.
                  Alcohol, Tobacco, and Firearms should be the name of a convenience store, not a govnoment agency.

                    HaveABall's avatar - rocket

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                    Posted: May 18, 2011, 10:39 pm - IP Logged

                    not if your from England or any other tax-treaty country

                    say if you won $1 MM you can have your English buddy collect it tax free instead of you giving 60% of it away to IRS ...

                    Thanks for presenting your idea.  Problem with idea is that, in most countries, the "countrymen buddy" would be limited as to how much they can annually give a person.   (In the U.S.A., that "gift" amount has been $13K per person per year -- a married couple could thus collectively "gift" up to $26K to a single person, per year.  Another key caveat is cannot "gift" more than $1,000,000 within their lifetime, otherwise, the sender and receiver pay a very high tax).

                    Having several millions of dollars in my financial accounts means receiving several valuable services each day!

                    Disney

                      HaveABall's avatar - rocket

                      United States
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                      March 18, 2009
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                      Posted: May 18, 2011, 10:42 pm - IP Logged

                      Hmm, 60% the the IRS vs. 100% to the [suddenly-left-town-without-leaving-a-forwarding-addy] buddy. Crazy

                      Yes!  I, too, I can forsee that possibility!  Darn. Dupe Alert

                      Having several millions of dollars in my financial accounts means receiving several valuable services each day!

                      Disney