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Taxation of Spanish Online Gaming Industry

Taxation-of-Spanish-Online-Gaming-Industry.jpgThe Spanish online gambling industry is regulated by the Spanish Gaming Act, which came into force in 2011. The Act refers to both regional gambling activities, which need licensing from the autonomous region in which the company was registered, as well as the online gambling activities that must obtain an authorization at a national level. However, if the online activities are carried only in a specific region of the country, the investors will need an approval issued by the institutions of the autonomous region and in this sense it is important to know that Spain has 17 autonomous regions and two autonomous cities. Our team of lawyers in Spain can offer in-depth assistance on the regulations available for this type of activity, as well as on the specific tax aspects related to the gambling industry
 

Tax aspects for Spanish gambling companies  

 
Companies operating in Spain in the field of gaming are required to file for taxation depending on the types of games the legal entity received authorization for. The online gaming industry imposes different types of taxes, following the regulations of the Gaming Act
 
Sports betting is taxed depending on the type of game (pool, fixed-odds or exchange); for a pool sports betting the company is required to pay a tax of 22% of the turnover, while in the case of the other two categories, the tax is imposed at the rate of 25% of the Gross Gaming Revenue (CGR). Our team of Spanish lawyers can provide more details on this tax
 
Games related to horse racing are taxed at the rate of 15% of the company’s turnover for pool games, while fixed-odds gambling is imposed with a tax of 25% of the GGR. The latter tax rate is also applicable for casino games, which may include poker, bingo, slots and similar games, while raffles and contests are imposed with a tax of 20% the turnover.  

 

Elements defining gaming activities in Spain  

 
Following the regulations of the above mentioned Act, companies registered in this industry should know that the gaming activities are defined by the following elements: 
 
chance;
pay to play;
a prize
 
It is necessary that all the above mentioned elements to be present in a gambling activity, as mentioned under the provisions of the Gaming Act
 
Businessmen are invited to contact our law firm in Spain for further information on the legal requirements applicable to a gambling company
 

Comments

  • Ethan 2017-09-13

    Thanks for the detailed presentation!

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