Personal income tax

from lotteries and gambling winnings

A natural person must pay personal income tax from all lotteries and gambling winnings, which in total exceed the amount of 3,000.00 EUR. The tax is to be paid from the excess amount regardless of the amount of expenditure (membership fees, the amount lost).

Tax rates:

  • 23% tax rate applies to winnings of over 3000 EUR (during a taxation year).
  • 31,4% tax rate applies to winnings of over 62800 EUR (during a taxation year).

Tax withholding:

  • From winnings exceeding 3,000.00 EUR, the gambling organiser withholds the tax instead of paying it out and pays it to the Treasury (Valsts Kase).

EXAMPLE:

Winning amount of a customer: 10,000.00 EUR

Non-taxable amount: 3,000.00 EUR

The taxable amount subject to the tax rate of 23%: 7,000.00 EUR

Tax paid by the budget of the gambling organiser: 7000 * 0.23 = 1,610.00 EUR

Customer winnings after taxes: 8,390.00 EUR

 

Natural persons pay tax of all lotteries and gambling winnings, the total of which exceeds 3000 EUR during a taxation year. The winning recipient is obliged to pay tax on the excess amount, if it is not withheld by the paying agent or gambling organiser.

Find out more about personal income tax on lotteries and gambling winnings here.