Spain Faces 30% Tax Hit on $50M World Cup Prize

Spain could forfeit up to 30% of the $50 million prize money earned for winning the 2026 FIFA World Cup to U.S. federal taxes. Under U.S. tax laws, income from activities performed in the country is taxable, and payments to non-resident foreign athletes are subject to a 30% federal withholding tax unless reduced by a tax treaty.

Spain won the World Cup by defeating Argentina 1-0 on July 19 at the New York New Jersey Stadium. FIFA announced that the champions would receive $34 million from its $871 million prize fund for the tournament.

Republican Congressman Tim Burchett criticized the tax rate as excessive, stating it sends the wrong message as the U.S. prepares to host more global sporting events. Commentator William Copus noted that unlike previous World Cup hosts, the U.S. did not grant broad tax exemptions for players.

Players could face total tax bills of up to 40% of their earnings due to state taxes, particularly in New Jersey and California.