Winning a good prize in a game of chance is an immense joy. For some people, it is the opportunity to pay off debts, for others to indulge themselves and those with an investment spirit consider something different: to spend on housing if they win the lottery.
But before imagining how that money is going to get used, you should know how much it will be charged and some other considerations.
How much to spend on housing if you win the lottery
How much it is in fact
In Spain, lottery prizes are subject to tax. That is to say that they pay taxes. Specifically, the tax rate that is applied is 20% from € 40,000. Hacienda directly deducts that amount before the prizes reach the lucky ones.
To understand it better, let's take an example with the first prize of the famous Christmas lottery. The big reward is € 400,0000 per tenth-share ticket:
• The first € 40,000 are not taxed.
• A 20% retention is applied to the remaining € 360,000.
• Treasury, therefore, keeps € 72,000.
• The winner, meanwhile, will receive € 328,000.
In addition to this, you must consider the amount received as income in the corresponding box of your income tax declaration (IRPF).
A good investment? Put it in housing if you win the lottery
Investing the prize is the best decision, and a home is always a safe-value asset. Besides, prices in the real estate market live a period of adjustments, so it is optimal timing to make investments thinking about future profitability, either within the rental market or as an opportunity to sell when the sector recovers and benefits from the operation.
There is a third factor to keep in mind. Perhaps the winning is not enough to buy a home, but you can always apply for a mortgage to cover the rest of the necessary capital. Why is it a good time to ask for a mortgage loan? Because the interests are low. If the amount requested is not very high, the loan will pay off in a short time.
Above all, think it through
The joy of winning a good prize, however, can cause essential issues to get missed. If you choose to purchase a home, take into account that added to the sale price, there are a series of expenses and taxes that must be satisfied. Therefore, accounting is essential.
If it is an investment for a habitual residence, you shall consider other questions. It is convenient to ask yourself if that home fit to the real possibilities or if it's above them and to assess if you have the economic capacity to maintain it.
More than one lucky person has been in difficulties due to lack of foresight and not being able to cope with the maintenance of the house chosen under the excitement of the moment. Therefore: investing in housing, if you win the lottery, is the best plan, but always after evaluating the possibilities thoroughly.
Now it only rests wishing you good luck. If you are one of those lucky ones, Spainhouses provides you with the best and largest real estate offer in Spain. Use our browser, and you will find the perfect home to invest and make your dreams come true.