Spain Faces Possible US Tax Deduction on World Cup Winnings
Spain could lose up to $15 million of the $50 million prize money awarded for winning the 2026 FIFA World Cup if the United States applies its standard 30 % federal withholding tax on income earned within its borders.
Why the Tax Might Apply
The 2026 tournament will be co‑hosted by the United States, Canada and Mexico, with a significant number of matches scheduled on American soil. Under US tax law, income derived from activities performed in the country is generally subject to federal taxation, and payments to non‑resident foreign athletes often trigger a 30 % withholding unless a tax treaty or exemption reduces the rate.
Lawmakers Voice Concern
Republican Congressman Tim Burchett of Tennessee called the potential deduction “a rip‑off,” warning that heavy tax obligations could discourage international visitors and athletes from spending money in the United States. He acknowledged that American professionals face similar rules but argued the policy sends the wrong message as the nation prepares to host more global sporting events.
Democratic Congressman Jonathan Jackson of Illinois echoed the criticism, describing the situation as “wrong” and a symptom of a tax system that places a heavy burden on workers while corporations enjoy loopholes. He urged a shift in focus so that laborers are not forced to surrender a large share of their earnings to taxes.
Broader Implications for Other Teams
The tax issue is not limited to Spain. Any national team that earned income from matches or tournament‑related activities conducted in the United States could see a portion of its revenue subjected to US withholding. This means the financial impact could extend to all participants who played on American soil, regardless of final placement.
Positive Views Amid the Debate
Republican Congressman Burgess Owens of Utah, a former NFL player, agreed that a 30 % deduction would be excessive but highlighted the tournament’s positive influence, saying it has deepened his appreciation for soccer and could inspire a new generation of American fans.
As the 2026 World Cup approaches, the discussion over how foreign earnings are taxed in the United States remains unsettled. The final amount Spain — and other teams — ultimately retain will depend on the specific payment structure, applicable tax treaties, and any exemptions that may be negotiated.
About the Author
