WINNING the EuroMillions lottery is a dream for many across the UK – but where is the best country to scoop your winnings?
Tonight’s lottery prize stands at a mammoth £90million for the lucky winner.
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Fortunately for those in the UK, all winnings are awarded tax-free regardless of how much you win or which game you play, according to Euro Millions.
Lottery winnings are not treated as income by HM Revenue & Customs, which mean they are exempt from taxation.
It doesn’t matter if you win £2.50 or £125 million, you will be paid the full amount.
Likewise, if you strike lucky in Austria, Belgium, France, Ireland or Luxembourg you will get to take home all your winnings.
So where is the worst country to hit the jackpot?
Portugal, Spain, and Switzerland are the three countries where EuroMillions prizes are taxed.
That means your winnings will take a hefty hit if you play in one of these locations.
In Portugal, any prize worth more €5,000 is taxed at a rate of 20 percent, while there is a levy of 35 percent in Switzerland on any winnings over CHF1 million.
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Spanish prizes of more than €40,000 are subject to tax at 20 percent.
However, the issue of tax can become more complex as your winnings accrue interest, or if you wish to give away any of your money.
For example, UK winners will not have to pay tax on the initial sum but if the win starts to produce an income through interest it will then be taxed as part of your normal income tax.
Tonight’s lucky winner will also gain automatic entry into the UK Millionaire Maker.
Recently, a generous winner took home £167million from EuroMillions but decided to donate nearly all of it to charity.
And one unlucky grandmother thought she had hit the multi-million jackpot but her joy only lasted ten minutes.
