Spain’s $50m World Cup Prize Money Faces 30% US Tax Hit, Report Says

Spain’s $50m World Cup prize money could shrink by nearly a third once United States tax authorities take their share, according to a new report examining the country’s federal tax rules. The reigning champions may end up losing as much as 30 per cent of the money they earned by lifting the 2026 FIFA World Cup trophy.

The issue stems from a straightforward principle in US tax law: income generated from work performed inside the country generally counts as taxable. Consequently, payments made to non-resident foreign athletes typically fall under a 30 per cent federal withholding tax, unless a specific treaty or exemption applies.

How Spain Earned Its World Cup Prize Money

Spain claimed the 2026 FIFA World Cup title after edging Argentina 1-0 in a tense final at the New York New Jersey Stadium on Sunday, July 19. That victory secured the team a $34 million share of FIFA’s record $871 million prize pool, which covered the expanded 48-team tournament. Even so, once federal withholding applies, the champions’ actual take-home amount looks considerably smaller than the headline figure suggests.

Lawmakers React to the World Cup Tax Rules

Unsurprisingly, the story has sparked reaction from US lawmakers on both sides of the aisle. Republican Congressman Tim Burchett of Tennessee didn’t hold back during a Fox News interview on Tuesday. “I think it’s a rip-off,” he said, though he quickly acknowledged that American athletes face similar obligations. “Americans have to do it. American professional athletes do it, so they knew that when they came over here,” he added.

Still, Burchett argued that taxing international athletes this heavily sends the wrong message, particularly as the United States positions itself to host more global sporting events in the years ahead. “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.” He closed by suggesting the country “got to get a better tax system.”

Breaking Down the Layers Behind Spain’s World Cup Tax Bill

Social media commentator William Copus, known online as The Feedski, offered additional context on how the situation came together. Previous World Cup hosts, he explained, usually negotiated sweeping tax exemptions that covered FIFA itself, national football federations, and even individual players. The United States, however, took a narrower approach this time around.

According to Copus, FIFA successfully lobbied for federal tax-exempt status for itself and participating national federations under section 501(c) of the US tax code. That exemption, though, stops there. Individual players, coaches, and support staff remain fully exposed to standard tax obligations.

“The default IRS withholding rate for foreign athletes earning income on US soil is 30% at the federal level,” Copus explained. On top of that federal rate, players also face state-level “jock taxes” in every state where they competed or trained. New Jersey, the site of the World Cup final, charges up to 10.75 per cent in state income tax and notably ignores international tax treaties altogether. This means players from countries with existing US tax agreements still owe New Jersey its share.

Meanwhile, California, which hosted several group-stage matches, imposes a state tax rate of 13.3 per cent. Once these layers stack together, Copus noted that players who spent substantial time in high-tax states could face combined US tax bills reaching 40 per cent of their tournament earnings, and that’s before their home countries take their own cut too.

Democrats and Republicans Find Rare Common Ground

Interestingly, criticism of the tax structure crossed party lines. Democratic Congressman Jonathan Jackson of Illinois called the situation “wrong” and said it highlighted a deeper flaw in the broader US tax system. He framed it as “a classic example of what’s wrong with our taxation system,” arguing that corporations should shoulder a larger share of the tax burden instead. “They should be paying the taxes as opposed to having tax loopholes,” Jackson said. “The people, the laborers that are working, they should not have to pay 30% of their income on taxes.”

Republican Congressman Burgess Owens of Utah struck a similar note, even while praising the tournament’s success. “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.” He went on to congratulate everyone involved in staging the event before acknowledging the tax reality. “It is what it is here, unfortunately, in our country of taxes,” he said.

What This Means Going Forward

Taken together, these reactions suggest growing bipartisan discomfort with how the US handled taxation for this year’s tournament, even as lawmakers celebrate the World Cup’s broader success on home soil. Whether Congress moves to revisit these rules before the next major international sporting event remains unclear. For now, though, Spain’s champions will likely see a meaningfully smaller final payout than the tournament’s headline prize figures initially suggested.

The official FIFA World Cup website provides detailed breakdowns of the $871 million pool.