Should you declare the winnings on sports bets?

In 2017, according to the General Directorate for the Regulation of Gambling (DGOJ), 5 billion euros were played in sports betting in Spain, an amount that has not stopped growing every year. So, it is normal that many users of bookmakers (online and offline) ask themselves questions about whether they should declare the profits they earn. In this article we will solve them all.

In what cases do you have to declare the winnings of sports betting?

The minimum amount to declare the winnings obtained in sports betting varies according to the other rents you obtain:

  • If your work or real estate incomes exceed € 22,000 per year with a single payer or € 12,000 per year with more than one payer and the net benefits of your sports bets are higher than 1,000 euros, you must declare them.
  • If the net benefits of bets and other capital and property gains, such as reimbursements for investment fund shares, exceed € 1,600 per year, you must also declare them.

What should you declare exactly?

Law 16/2012, of December 27, stipulates that the net benefits of the game must be taxed. These benefits must be global, so you must calculate your net profits from all the betting houses in which you have played. In addition, we must take into account the money that we have not withdrawn and that we still have in the account.

In the case that a bookmaker gives you money to bet, something very common in welcome bonuses, the amount will count as a benefit when calculating the net benefit. So, if they give you 20 euros and you get profits for a value of € 10,000 and losses for a value of € 4,000, the net benefits to be declared are € 6,020

What percentage does the Tax Agency retain from sports betting profits?

One of the most frequent doubts about the declaration of earnings from sports betting is how much will have to be paid to the Tax Agency.

There is no fixed answer, since it varies according to the total income, not just the bets. Keep in mind that income from the income statement is divided into income from work, real estate capital, movable capital, economic activities and capital gains and losses. Applied the corresponding reductions, as for example if you have children, you will obtain a taxable base on which the percentages will be applied. The higher the tax base, the higher the percentage that applies:

  • Up to € 12,450: 19%
  • From € 12,450 to € 20,200: 24%
  • From € 20,200 to € 35,200: 30%
  • From € 35,200 to € 60,000: 37%
  • More than € 60,000: 45%

How to declare the benefits of sports betting?

The net benefits of sports betting are included in box 253, where there are all the prizes obtained for the participation of games, contests, raffles, random combinations or bets.

If you do not have time or want to make sure that you will present the income statement without any type of error, the easiest solution is to leave it in the hands of a tax consultant like GM Tax. Remember that if you do not declare your net profits from the Income bets when you should or not present it on time you expose yourself to sanctions that can be quite high.

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