When you play at Liechtenstein Lotto you get a shot at winning the over 20 million Euros tax-free jackpot.
This is the same as winning any lotto prize in the EES or EU countries. I needed to check if this were indeed true and so I sent an email to the tax authorities to get a detailed explanation. This is an interpration of their answer:
This is regarding to the email that you had sent to our Tax Office:
If you win any prize through a lottery in the EU or EES, then that prize money is tax-free, just as in any other internal prize. There are however, some conditions:
“Lottery” as defined in the lottery act is a business where a single person or more participate with or without putting up a stake, and win amounts that are of higher amounts than others. Guessing, Betting, drawing of lots, and similar activities including bingo games, dice games, funfair games, market games, card games, chain letter games, roulette games, gambling machines and other similar games are included in the term. Chess, bridge, pool and other games that require skill are excluded from this category.
The definition of a “Foreign lottery” is when you partake in any foreign lottery such as horse racing, poker, etc as defined in the lottery act and win money from such lotteries.
The lottery needs to be held by an actual person physically living in the EU/EES country or by any foreign judicial person that belongs to an EU/EES country. In practice, this would be related to winnings won over the Internet from foreign gambling companies or bookmakers. Even though this would have involved betting with or gambling through a foreign bookmaker on a server located out of the EU/EES region, this does not need different rules other than this is a foreign lottery operating inside an EU/EES country.
With kind Regards
From the Tax Office