Tax on Vikinglotto Winnings
Tax applies on lottery winnings in two of the nine participating countries of Vikinglotto. How much prize money you will receive if you win is not always as simple as looking at the advertised jackpot or waiting for the results to be announced. Some countries levy a tax on lottery winnings, so you might end up with less than the advertised prize amount depending on the country you play in.
In countries such as Denmark and Estonia, the lottery provider is responsible for paying the tax on prizes, meaning there are no further tax obligations for winners. In these cases, prize amounts are advertised after tax has been deducted.
The following table shows how much tax lottery winners in each of the participating countries must pay:
|Winnings from €3,000 to €55,000 are subject to a tax rate of 23%. Winnings above €55,000 are taxed at 31.4%|
|Winnings of €300 and above are taxed at a rate of 15%|
Tax obligations depend on where you play the game, rather than where you live. If you buy a Vikinglotto ticket abroad while on holiday in a country which taxes lottery winnings, for example, any amount you win will be subject to the local rate of withholding. You can only claim prizes in the country where you bought your ticket.
The majority of Vikinglotto countries do not tax prizes, but any interest accrued on lump sum payouts may be considered a source of income so could be subject to taxation. It means that while the initial prize amount paid to you may be exempt, any further money made from interest on the winnings could be taxed according to the rates in your country of residence.
Taxation issues can also vary greatly between individuals due to their personal circumstances, so players who win Vikinglotto prizes are advised to seek out expert financial advice.