As of 1 January 2024, the Czech Republic has made significant changes to the taxation of gambling winnings, including lotteries.

Key changes:

Reduction of the exemption limit: Previously, lottery winnings were exempt from tax if they did not exceed CZK 1,000,000. From 2024, this limit has been reduced to CZK 50,000. This means that every single lottery win above CZK 50,000 is subject to a 15% withholding tax.

Individual winnings are not added together: Individual winnings are not added together when assessing tax liability. Therefore, if you win several small amounts during the year, none of which exceeds CZK 50,000, you will not pay tax on these winnings.

Practical example:

If you win CZK 60,000 in a lottery, the lottery operator automatically deducts 15% tax on the entire winnings, i.e. CZK 9,000, and pays you CZK 51,000.

If you win CZK 20,000 three times during the year, none of these wins will exceed CZK 50,000 and you will pay no tax.