Taxes & Law
IS THE PRIZE DRAW LEGAL?
Based on all the information, that have been published 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. Much confusion has arisen with respect to the house prize-draw and Belgian taxes on winnings. Further insecurity has also been created among participants by many comments that are simply not based on facts, although they claim to be so.
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.
IS THE PRIZE DRAW LEGAL?
Based on all the information, that have been published 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. Much confusion has arisen with respect to the house prize-draw and Belgian taxes on winnings. Further insecurity has also been created among participants by many comments that are simply not based on facts, although they claim to be so.
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.
1. Duties payable in Cyprus:
The tax totals 25% of the overall value of the raffle, and is payable by the organizers of the raffle.
The tax totals 25% of the overall value of the raffle, and is payable by the organizers of the raffle.
2. Tax on winnings in Belgium:
The 11% tax on winnings is due in Belgium on the gains constituted by the property offered as the prize, and is payable by the organizer of the event.
The 11% tax on winnings is due in Belgium on the gains constituted by the property offered as the prize, and is payable by the organizer of the event.
3. Belgian property-transfer tax:
The prize draw actually takes place on Cyprus, although the property is transferred to the winner and inscribed in the land registry of Belgium, with 12,5% property-transfer tax due on the market value of the property, which is paid – along with the corresponding notary’s fees – by the organizer of the raffle.
The prize draw actually takes place on Cyprus, although the property is transferred to the winner and inscribed in the land registry of Belgium, with 12,5% property-transfer tax due on the market value of the property, which is paid – along with the corresponding notary’s fees – by the organizer of the raffle.
