Portuguese win the least prize in the Euromillions draw
Going Home with Less: The Unfair EuroMillions Game in Portugal
While the EuroMillions prizes remain consistent across Europe, Portugal stands out as one of the nations where winners don't take home the full jackpot. The Portuguese residents have to hand over a substantial chunk to the government due to high taxation.
As reported by Contacto, Portugal's tax rate on EuroMillions winnings is among the most punishing among the nine participating countries. This discrepancy was evident in last week's draw, which saw seven players win the second prize valued at €2,737,810.69. Bemoaning their luck, two of the winners hail from Portugal.
According to the same source, the remaining five winners will be taking home the entire prize, while the two Portuguese winners will only pocket €2,190,248.55 due to the 20% stamp duty, which claims more than half a million euros from each winner.
Portugal: The Land of Taxed Jackpots
In the eyes of Contacto, Portugal is one of the countries with the harshest taxation policies on lottery winnings. All social game winnings over €5,000 are subject to a 20% stamp duty, a tax that affects both EuroMillions and other high-stakes games. What's more, Portugal's relatively low rate percent-wise creates a nasty sting when the tax kicks in at just €5,000, making Portugal one of the nations that most severely penalizes winners.
The situation contrasts starkly with other European countries such as Luxembourg, France, Belgium, the United Kingdom, Ireland, and Austria. In these nations, EuroMillions winners always keep their entire prize, as noted by Contacto.
Apart from the taxation structure, the Portuguese M1lhão game and its associated costs are unique to Portugal. Each EuroMillions ticket purchased there includes an extra €0.30 for the M1lhão draw every Friday. Nonetheless, the main reason behind the difference in received amounts remains the tax deduction. For instance, in the M1lhão draw, a €1 million prize offers a winner just €800,000 after the 20% stamp duty is deducted, as noted in a report.
[Enrichment Data]The Portuguese EuroMillions winners take home less than their counterparts from other European countries due to taxation. In Portugal, winners of large sums have to pay stamp duty on their winnings at a rate of 20%. This duty reduces the actual amount they receive compared to winners from countries with different tax structures or no tax on lottery winnings. For example, in the M1lhão draw, a prize of €1 million is subject to a 20% stamp duty, leaving the winner with €800,000 in hand. This taxation difference is the primary reason for Portuguese winners receiving less than winners from other countries, despite nominally identical prizes.
The high taxation in Portugal on lottery winnings, specifically the 20% stamp duty on EuroMillions wins over €5,000, results in Portuguese winners taking home less money compared to their counterparts in other European countries. For instance, a €1 million prize in the M1lhão draw leaves the winner with only €800,000 after tax, contrasting with winners in countries like Luxembourg, France, Belgium, the United Kingdom, Ireland, and Austria who keep their entire prize.
