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The Liechtenstein Lotto prize is all tax-free

Like all lotto prizes within the EU and the EES, the first Prize of the Liechtenstein Lotto is also tax-free. That means you can win over 20 million Euros – tax-free.
To make sure that the tax authorities are interpreting the law correctly, I wrote an e-mail to ask them, and this is the answer I got:

Answering your e-mail to Tax Office:

Hello!

If you have won a lottery arranged within the EU/EES region, the prize is not taxable, just like internal ones. These are the conditions:

The term “lottery” is defined in the lottery act. Lottery means a business where one or more participants, with or without a stake, can win a higher amount than the others. Included in this term are drawing of lots, guessing, betting and similar activities, market and funfair games, bingo games, gambling machines, roulette, dice games, card games, chain letter games, and similar games. These are examples – there are, of course, others. However, skill games such as pool, bridge and chess are not covered by this category.
A “Foreign lottery” may be defined as your participation in foreign lotteries according to the lottery act – foreign winnings from horse betting and poker etc., are to be considered “foreign lottery”
The lottery has to be held by a physical person living in an EU/EES country or by a foreign judicial person belonging to an EU/EES country. In practice, it would concern winnings from established foreign gambling companies (bookmakers), over the Internet. The fact that betting or gambling with a foreign bookmaker actually takes place on a server outside the EU/EES region, does not call for different rules to one that it is a foreign lottery arranged within an EU/EES country.

Kind Regards
Tax Office


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