30% tax threat on Spain’s World Cup reward sparks outcry in US

Spain’s $50 million prize money for winning the 2026 FIFA World Cup could face a significant tax deduction in the United States, triggering criticism and debate among American lawmakers and sports officials.

According to a report by Fox News, the US Internal Revenue Service (IRS) rules allow a federal withholding tax of up to 30 percent on certain income earned in the United States by non-resident foreign individuals. Since Spain played its World Cup matches on US soil, questions have emerged over whether part of its championship prize money could be subject to taxation.

The possibility has drawn criticism from lawmakers from both the Republican and Democratic parties. Republican Congressman Tim Burchett of Tennessee described the potential tax deduction as “a form of robbery,” arguing that foreign athletes and teams should be encouraged to come to the US rather than face heavy tax burdens.

Democratic Representative Jonathan Jackson of Illinois also criticized the policy, saying that imposing a 30 percent tax on workers and athletes was unfair and that large corporations should contribute more. Utah Republican Congressman Burgess Owens said hosting the World Cup would benefit the US economy and sports culture but called the 30 percent tax rate excessively high.

The 2026 FIFA World Cup had a total prize pool of $871 million, with $655 million distributed among teams based on performance. Besides Spain, other national teams that played matches in the US could also face taxation on portions of their participation fees and performance bonuses.

Analyses by Reuters and The Associated Press noted that the US has long-standing rules for taxing income earned by foreign individuals and organizations. However, the final tax amount may vary depending on existing tax treaties between countries and the nature of the income. Therefore, it is not yet certain that Spain would have to pay the full 30 percent tax.

Tax experts said the final amount would depend on several factors, including the structure of payments between FIFA, national football federations, players, and relevant provisions under the Spain-US tax agreement.

Some US lawmakers and experts warned that imposing high taxes on international sports earnings could send a negative signal ahead of future global sporting events, including the 2028 Los Angeles Olympics.

However, FIFA, the Spanish Football Federation, and the US IRS have not yet issued any official statement on whether Spain’s prize money will be taxed or how much would be deducted. As a result, the exact tax implications remain uncertain.

-HIS