Although brands have been running exciting consumer prize promotions for over 50 years, with the rise of social media, and the increase in cross-border brands, central marketing teams are often tasked with creating promotions in many different countries and they may have a very different legal framework to consider.
So in this occasional series of articles, we take a look at Spain. The basics on their laws and how to run promotions there.
Here are some of the key rules to consider when running promotions:
Competitions, that is games of skill or judgement, are the easiest mechanic to run in Spain, even if linked to a product purchase.- Prize draws, whether free or linked to purchase, can be run, and no longer need to registered with the Authorities, but draws still need to be conducted by a Public Notary in Spain.
- Cash or vouchers can be used as a prize for any promotion.
- There is a 10% tax on all prizes given away in Spain, and an additional tax if the value of a prize is more than €300.
- This tax is usually paid by the Promoter- so allow for it in your budget.
- Spain can be part of a multi-country prize promotion – and in many ways this makes life easier because some of the rules of the country do not then apply.
- If the total value of prizes exceeds €10,000, then the Promoter must inform the public via newspaper or other advertising.
- Terms and conditions must be in Spanish and must be available to the participants before they enter.
- It is advisable to lodge the Terms with a Notary Public before the start date.
- Beware. There are serious penalties and cash fines for non-compliance.
To ensure that your promotion is being run fairly and according to the laws and best practices of the country, talk to PromoVeritas. We are global experts at helping to shape and implement promotions for all types of brands and all types of mechanics, whether run online, on pack, offline, in the UK, Europe or the rest of the world.
To discuss how we can help you to run a promotion in Spain or anywhere else in the world please contact info@promoveritas.com or call 0203 301 7360.
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