Gambling Taxes In The UK And The EU
Depending on the jurisdiction, taxation laws applied to gamblers can vary significantly. The UK, which has one of the most regulated and open gambling markets in the world, has generous taxation laws and players do not pay a penny on their winnings. The EU has different laws in different countries, as tax laws are determined nationally. Some charge 0% taxation, taking money from casino and iGaming sites instead, while others do levy taxes against total winnings. Below, we look at the gambling taxes faced by players in different nations within the EU.
Generally, offline and online gambling are treated the same, although there are some unusual exceptions that we’ll cover below. Online gambling has become popular because it is convenient and offers access to casinos, gambling sites, and games from around the world. And with under 1 hour withdrawal casino sites, players can get access to their winnings virtually straight away. Even if they have to pay some taxes, it’s easier to act accordingly with their assets available in no time.
Tax Laws In The UK And EU
UK – The UK has a regulated, open gambling market and generous tax laws for players. Winnings are not taxed regardless of how much a player wins or what type of gambling the winnings came from.
Austria – Austria has similar tax laws to the UK as gambling does not fall under any of the seven types of taxable income. Winnings from games of chance are not taxed.
Belgium – Belgium does not levy tax on winnings from games of chance or betting, putting the country on a par with the UK and Austria.
Bulgaria – Similarly, Bulgaria taxes casinos and betting sites, but players do not pay tax on any winnings.
Croatia – Croatia does charge tax on player winnings. The tax rate varies according to the size of the winnings, from 10% for small prizes up to 30% for bigger total winnings.
Cyprus – In Cyprus, which has a sizeable online gambling industry, state lottery winnings are taxed at a rate of 20% but other forms of gambling do not incur any taxes.
Czech Republic – Raffle and lottery winnings over 1 million Korunas (around $44,000) face a 15% income tax. Gambling winnings from any other form of gambling are offset by bets placed, but a 15% income tax is levied against total winnings over 1 million Korunas.
Denmark – Winnings from licensed gambling operators in Denmark are not subject to taxation, but winnings from unlicensed gambling are considered personal income and included in income tax, which can be as high as 62%.
Estonia – All licensed gambling winnings are tax-free in Estonia, and gambling at unlicensed facilities or sites is prohibited.
Finland – Whether you gamble online or offline in Finland, there is no tax applied to winnings.
France – French law dictates that winnings from gambling are not subject to income tax. However, players who win more than 1,500 Euros at slot machines do pay a 12% tax.
Germany – Winnings are not subject to tax, but all sports bettors pay a 5% tax on the stakes of any bets they place, which means you are taxed even if you lose.
Greece – Greece has staggered tax rates according to the amount players win. The rate ranges from 0% for very small winnings to 20% for big wins.
Hungary – General winnings in Hungary are not taxable. However, winnings from online betting and unlicensed operators are subject to regular income tax rates.
Ireland – Ireland has a flat 2% tax rate that is paid on winnings from all forms of gambling including online and offline gambling.
Italy – Italy taxes gamblers according to the size of their winnings with tax rates ranging from 12% to 23%, and this includes state lotteries.
Latvia – Lottery and gambling winnings are included as taxable income in Latvia, except where those winnings are less than 3,000 Euros. In this case, winnings are tax exempt.
Lithuania – In Lithuania, all lottery and gambling winnings are treated as income and are, therefore, subject to income tax.
Malta – Winnings are generally exempt from tax in Malta, unless the player plays frequently enough to be considered a professional gambler.
Netherlands – The Netherlands has quite high tax rates, charging 30.1% on any winnings over 449 Euros.
Poland – As well as taxes placed on all betting stakes, paid by the betting company, player winnings are also taxed.
Portugal – Generally, winnings from betting on games of chance in Portugal are tax exempt.
Romania – Romania recently increased taxes on winnings significantly, with players now taxed between 3% and 40% on their total winnings.
Slovakia – Slovakian gamblers do not face any taxes on winnings, regardless of what type of gambling activity and whether it is conducted online or offline.
Slovenia – Slovenia has reasonable tax rates with winnings up to 299.99 being exempt from tax. Any winnings over this amount are taxed at 15%.
Spain – Spain has a large-tiered list of winnings taxes, ranging from 19% tax on winnings up to 12,450 and including 24%, 30%, 37%, and 45% on winnings.
Sweden – Sweden gamblers are exempt from tax if winnings come from an operator that is licensed within the EU.
Crypto Taxes
Even in jurisdictions where winnings are tax-exempt, it is important to note that other taxes might be levied. For example, if winnings are taken as cryptocurrency which the player holds before cashing out to fiat currency, any profits made from that trade are likely to be subject to local taxes. And, in most jurisdictions, if a player is considered to be a professional gambler, their winnings will be treated as income and subject to income tax.
