How to organise a contest in Spain

Regulations and tax aspects for organising a successful contest

Every contest in Spain is subject to strict control by the Dirección General de Ordenación del Juego, an organ of the Ministerio de Hacienda y Hacienda y Administraciones Públicas.
The legislation in question on prize events is the “Ley 13/2011 de Regulación del Juego” of 27/5/2011, which has unified the legislation relating to games and competitions in Spain.

Types and timing for organising contest in Spain

According to the regulations, Spain allows us to organise both chance based promotions and those tied to purchases.

The period of time required to start a contest in Spain varies according to the mechanism. We recommend that you allow a minimum of 10 days for a contest governed by skill and up to 3 weeks for a chance based promotion to fulfil the necessary obligations. For the latter type of promotions, it is necessary to send the regulations and a specific communication to the competent authorities (AEAT) before the start of the initiative, in order to ensure full compliance with tax obligations.

Tax obligations in contests in Spain

Taxation is a critical aspect to be considered carefully when organising contests in this country.

The fiscal responsibilities related to the management of a contest depend on various factors, including the type of initiative and the value of the prizes offered.

In chance based promotions, for example, you must pay the “tasa de combinaciòn aleatoria”, a tax equal to 10% of the total value of the prizes, to be paid after receive the related “carta de pago” from the AEAT which must which must be notified before the start of the promotion. Regardless of the mode of participation, on prizes above 300 euros it is necessary to pay taxes as the “Ingreso a cuenta” tax using particular payment models.

Taxes and territorial coverage of chance based promotions

The “Tasa de combinaciòn aleatoria” is mandatory for chance based promotions, with different procedures depending on the geographical extent of the event.

Payment of the tax requires the presence of a tax official position in Spain on the part of part of the promoter with a co-organiser equipped with a Spanish VAT number (NIF), such as Promosfera.

Control and transparency of contests in Spain

In addition to the Tax Agency, the Consumer Inspectors also verify the correctness of promotions, requiring maximum transparency and adherence to consumer protection legislation.

Obstacles and Solutions

The lack of a tax position or the fear of violating local rules can hinder the organisation of promotions in Spain.

Promosfera specializes in creating and managing international prize promotions and giveaways worldwide, offering tax representation and logistical support to ensure the integrity and legality of these promotions, including abroad.