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TAXES & LAW
IS THE PRIZE DRAW LEGAL IN CYPRUS?
Based on all the information, that have been published in the German-speaking countries and many of them are misleading and wrong, we want to clarify the main issues.
Yes, this kind of raffle is legal, because the draw will be carried through on Cyprus where the chosen form of the draw is in alignment with the relevant laws. Cyprus is an official member state of the European Union and provides the needed jurisdiction.
WHAT IS THE WINNER LIABLE TO PAY?
Many interested participants have asked us about the costs that might occur for the winner of this house.
In the case of prize-draws which, like this one, take place on Cyprus, we have to differentiate between duties to be paid by the raffle organizer, additional duties to be paid voluntarily by the raffle organizers (including, for example, property transfer tax) and the taxes to be paid by the winner.
Yes, the house raffle is legal in Cyprus. The draw procedure must however be limited to a single item. The organising of lotteries with multiple prizes for several “winning tickets” (i.e. involving various items) is reserved for holders of the corresponding official lottery concession.
Exceptions to the monopoly on gambling are not subject to the obligatory permit regime of the Cyprus Federal Ministry of Finance.
- Duties payable in Cyprus:
The tax totals 15% of the overall value of the raffle, and is payable by the organizers of the raffle..
- Tax in France
The tax in France for real estate until 2500m² land area and older than 5 years is currently 5%. Is payable by the organizer of the raffle.
- Registration tax in France The registration tax is 2%, and is payable by the organizer of the raffle.
- Winnings from gambling:
The prize is normally described as so-called “net winnings”, i.e. where the organiser has already paid the tax due under the terms of the fiscal code. Gambling winnings are not subject to income tax, as they do not constitute income.
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