Every day, televised lotteries offer prizes in the form of cards through telephone calls. Are these prizes subject to taxes? Yes, they are subject to Stamp Duty (IS), but typically, the broadcasters cover this cost, meaning the prize as announced is what the winner receives.
“The prizes are subject to stamp duty, in accordance with applicable legislation. However, unless otherwise stated, all prizes are communicated by their net value, meaning the amount mentioned is what is actually delivered to the winner, net of applicable taxes. These taxes are paid by the contest organizers. Thus, the winner will not have to bear any tax burden or pay additional taxes,” states TVI in an FAQ document.
SIC’s similar document mentions that the “payment of the stamp duty of 35% + 10% on prizes awarded in the contest, as specified in items 11.2 and 11.2.2 of the General Table of Stamp Duty, is fully covered by SIC.”
RTP also states, in response to their frequently asked questions, that “the payment of the tax on the prize awarded in the promotional contest is covered by RTP.”
Why are prizes awarded on cards?
RTP explains that prizes are awarded in kind and may consist of preloaded debit cards, gold, shopping vouchers, cars, or others depending on each contest.
SIC adds that prizes are awarded in kind and, depending on each contest, may consist of preloaded debit cards, cars, or others announced in the respective contests.
TVI notes that, by law, contests subject to municipal approval cannot award cash prizes, which is why TVI does not award cash prizes in such contests nor convert awarded prizes into cash.
The Queluz de Baixo channel further explains that the card “allows payments for most goods or services acquired this way, in Portugal or abroad.” For instance, purchases can be made “at over 24 million commercial establishments connected to the VISA network worldwide,” allowing for “all payments with multibanco references and ATM transactions” such as paying electricity, water, TV, or phone bills, purchasing tickets, online shopping, and others.
However, the card does not allow withdrawals or bank transfers, applicable to all three channels.
Is there a deadline to spend the money?
TVI also states that the “balance validity is, at a minimum, one year and can be extended upon written request from the winner to TVI, at least 60 days before the card’s final expiration date.”
The same applies to RTP: “The prepaid debit card has a one-year validity from the date the prize is loaded onto the card. The validity period can be extended upon written request from the winner to the card issuer.”
Meanwhile, on SIC the “credited balance on this card must be used within three years from the date of issue, after which the right to use the remaining balance expires.”
Prizes from Jogos Santa Casa above 5,000 euros are subject to Stamp Duty, meaning winners take home 20% less. Also, find out if prizes need to be declared in the IRS.
Notícias ao Minuto | 09:16 – 16/09/2025
