How to run a giveaway in your business: ideas, rules and tax (Spain)

Disclaimer: this article is for information only and does not constitute legal or tax advice. Regulations can change and vary between Spain’s autonomous communities: check with your accountant or adviser before running your first giveaway.

In Spain, a promotional giveaway in your shop is legal and doesn’t require a licence, as long as taking part is free beyond the normal purchase (no surcharge) and you publish the terms and conditions. There are two tax points to bear in mind: the tax on the value of the prize, paid by the organiser, and the IRPF (Spanish income tax) withholding or payment on account if the prize is worth more than €300. We explain it step by step.

Why run giveaways in your business

Customer giveaways are the perfect complement to a stamp card or points card:

They keep interest alive between one reward and the next.
They get people talking in the neighbourhood and on social media.
They attract new customers, who come in to take part.

Prize ideas by sector

Business	Prize	Approximate value
Café	Breakfast for two every month	€10-15
Bakery	A cake or a seasonal bake	€15-30
Hair or beauty salon	A treatment or a product bundle	€30-60
Restaurant	Dinner for two	€40-80
Local shop	A shopping voucher	€25-50

A prize doesn’t have to be expensive to work: it has to be visible (in your window and on social media) and desirable. What’s more, below €300 the tax side is simpler, as you’ll see below.

Step by step: organising your giveaway

Define the goal and the prize. Do you want more visits on quiet days, more new customers or to reward your regulars?
Decide how people enter. For example: one entry per purchase, per visit or from a minimum number of points.
Set the dates: start, end and draw date.
Write and publish the terms. Below you’ll find what they should include.
Choose the winner. With Socios, the app picks the winner automatically from the participants and notifies everyone.
Announce the result and hand over the prize. Share it in your window and on social media, respecting the winner’s privacy.

What the giveaway terms should include

Clear terms protect both you and your customers. At a minimum:

Organiser: the shop’s name or registered business name, tax ID (NIF) and address.
Dates: start and end of the entry period and the draw date.
Scope: where it takes place (your premises, your town).
Who can enter: for example, over-18s, excluding employees.
Mechanics: how people enter and how many entries each purchase or visit gives.
Prize: description and approximate value. State that it can’t be exchanged for cash, if that’s the case.
Choosing and notifying the winner: how the winner is chosen, and how and when they’re told.
Deadline for claiming the prize and what happens if nobody claims it.
Data protection: what data is used, what for and how to exercise their rights (GDPR).
Prize taxation: who covers the taxes and the withholding, if any.
Acceptance: taking part means accepting the terms.

Publish them somewhere visible (your window, your social media or your website) for the whole duration of the giveaway.

What the law says in Spain

Rules on giveaways differ from country to country: this section covers Spain and, below, Mexico; if your business is elsewhere, check the local rules with an adviser.

You don’t need a licence or national authorisation

Law 13/2011 regulating gambling excludes from its scope so-called “random combinations for advertising or promotional purposes”: giveaways whose only aim is to promote a product or service and whose only consideration is buying that product, with no surcharge or additional cost.

According to the Directorate General for the Regulation of Gambling, running them requires no licence, authorisation or prior notification.

The organiser pays a tax on the value of the prize

Although they don’t need a licence, these giveaways are taxed. The organiser pays the Tax on Gambling Activities: 10% of the market value of the prizes (article 48 of Law 13/2011). For example, for a €50 prize, around €5.

If the giveaway is limited to one autonomous community, the corresponding regional tax may apply. In Catalonia, for example, the Agència Tributària de Catalunya also applies 10% on the value of the prizes and links the tax to authorisation of the giveaway. That’s why it’s important for your adviser to confirm what applies in your region.

If the prize is worth more than €300, there’s IRPF withholding or a payment on account

For the winner, the prize is a capital gain taxed under their IRPF. For the organiser:

Prizes up to €300: no withholding or payment on account is required. The winner must declare the prize in their tax return.
Prizes over €300: the organiser applies 19%, as withholding if the prize is cash or as a payment on account if it’s in kind (a product or a service). They must also report it to the Spanish Tax Agency and give the winner a certificate.

More information from the Agencia Tributaria.

Data protection

If you collect participants’ data, explain what data you use and what for, and comply with the GDPR. With Socios, entry is linked to the customer’s app, which already includes its privacy policy.

What about Mexico?

If your business is in Mexico, the rules are different. Giveaways are governed by the Federal Law on Games and Draws (Ley Federal de Juegos y Sorteos) and generally require prior permission from the Ministry of the Interior (SEGOB), which must be requested before announcing the promotion. Profeco’s rules on promotions also apply. Check the SEGOB requirements for giveaways and speak to a local adviser before organising one.

Common mistakes

Charging to enter. If the customer pays anything extra to enter the giveaway (a surcharge or a “ticket”), it stops being promotional and becomes regulated gambling.
Not publishing terms. If anyone complains, the terms are your backing.
Prizes over €300 without planning for withholding. If you don’t want to deal with it, keep prizes below that amount.
Not announcing the winner. If participants don’t see that someone wins, your next giveaway loses credibility.

Frequently asked questions

Do I need permission to run a giveaway in my shop?

In Spain, you don’t need a licence or national authorisation for a promotional giveaway where the only condition is making a purchase, with no surcharge. Check with your adviser whether your autonomous community has its own requirements. In Mexico, on the other hand, you do need permission from SEGOB.

Do I have to pay tax to run a giveaway?

Yes. The organiser pays a 10% tax on the value of the prizes (national or regional, depending on the giveaway’s scope) and, if the prize is worth more than €300, must apply a 19% IRPF withholding or payment on account on behalf of the winner.

Can I require a purchase to enter?

Yes, as long as there’s no surcharge: the customer pays the normal price for what they buy, with no extra cost to take part.

What happens if the prize is worth more than €300?

You have to apply a withholding (cash prize) or a payment on account (prize in kind) of 19% of its value, pay it to the Tax Agency and give the winner a certificate. That’s why many small shops prefer prizes under €300.

Create your automatic giveaway

With Socios Plus you set the prize, the frequency and who takes part, and the app chooses the winner automatically and notifies all your customers. 14 days free, no credit card required.