Spain may lose 30% of $50m World Cup prize to US taxes

Spain might lose up to 30 percent of the $50 million prize money it earned for winning the 2026 FIFA World Cup to taxes in the United States.

PUNCH Online reports that US tax laws say income earned from activities done in the country is usually taxable.

Payments to foreign athletes who do not live in the US often face a 30 percent federal withholding tax unless a tax treaty or exemption applies.

Spain won the 2026 FIFA World Cup after beating Argentina 1-0 in the final at the New York New Jersey Stadium on Sunday, July 19.

FIFA says the champions will get $34 million from the governing body’s record $871 million prize fund for the new 48-team tournament.

Reacting to the possible tax burden, Republican Congressman Tim Burchett from Tennessee, as reported by Fox News on Tuesday, called it excessive.

“I think it’s a rip-off,” Burchett told the platform.

“I’m not a fan of it, but Americans have to do it. American professional athletes do it, so they knew that when they came over here,” he said.

Burchett said taxing international athletes at such a rate sends the wrong message as the US gets ready to host more big global sporting events.

“I’m not a big fan of the IRS,” he said. “They made that money over here, I guess, but I don’t like all that. We want to encourage these people to come over here and spend their money, and then we take a big chunk of it.

“We’ve got to get a better tax system.”

A popular social media commentator, William Copus, known as The Feedski, said host countries for the World Cup usually sign wide tax exemption agreements covering everyone involved, including FIFA, national federations, and players.

But he pointed out that unlike past hosts like South Africa, Brazil, Russia, and Qatar, the US did not offer these exemptions.

“While FIFA worked hard and eventually got federal tax exempt status for itself and the national federations under section 501(c) of the tax code, that exemption ends at the federation level. Individual players, coaches, and staff are on their own.

“The default IRS withholding rate for foreign athletes earning money in the US is 30 percent at the federal level. On top of that, players face state jock taxes in every state where they played or practiced. New Jersey, where the World Cup final took place, charges up to 10.75 percent state income tax and notably does not honor international tax treaties, meaning even players from countries with US tax agreements still owe New Jersey.

“California, where several group matches were played, charges 13.3 percent. Together, players who spent a lot of time in high-tax states could face total US tax bills of up to 40 percent of their tournament earnings before their home country takes its own cut,” he said.

US President Donald Trump (Photo by ALEX WONG / GETTY IMAGES NORTH AMERICA / Getty Images via AFP)

PUNCH Online could not independently check these claims.

But Democratic Congressman Jonathan Jackson from Illinois also criticized the possible tax rate.

“It’s wrong, and that kind of highlights something bigger,” Jackson said.

He called it “a classic example of what’s wrong with our taxation system,” saying that corporations should pay more taxes.

“They should be paying the taxes instead of using tax loopholes,” he said. “The people, the laborers that are working should not have to pay 30 percent of their income on taxes.”

Republican Congressman Burgess Owens from Utah also said the possible 30 percent tax was “too much,” while praising the US for hosting the World Cup.

“I have such an appreciation for soccer now,” Owens said. “I think it’s going to be a game changer for so many of our kids. And, so, I want to congratulate the president and everyone who made this happen.

“It is what it is here, unfortunately, in our country of taxes.