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Spain may owe 30% of World Cup prize to US taxes: Report

From The Punch · () English

Translated from English, summarized and contextualized by DistantNews.

At a glance

News Named sources Outcome reported
  • Spain could lose up to 30% of its $50 million World Cup prize money to U.S. federal taxes.
  • U.S. tax law typically taxes income earned from activities within the country, with a 30% withholding tax on non-resident foreign athletes.
  • A U.S. congressman criticized the tax as excessive and argued it sends the wrong message for hosting international sporting events.

Spain faces a potential 30% tax on its $50 million World Cup winnings, according to a report by The Punch. U.S. tax laws generally apply a 30% federal withholding tax on income earned from activities within the United States by non-resident foreign athletes, unless a tax treaty or exemption applies.

I think it’s a rip-off.

— Tim BurchettRepublican Congressman Tim Burchett of Tennessee reacting to the potential tax burden on World Cup prize money.

Spain secured the 2026 FIFA World Cup title by defeating Argentina 1-0 in the final. The champions are set to receive $34 million from FIFA's record $871 million prize fund.

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.

— Tim BurchettRepublican Congressman Tim Burchett of Tennessee explaining his view on taxing international athletes.

U.S. Republican Congressman Tim Burchett of Tennessee called the tax "a rip-off" and "excessive." He argued that taxing international athletes so heavily sends the wrong message as the United States prepares to host more major global sporting events. "We want to encourage these people to come over here and spend their money, and then we take a big chunk of it," Burchett stated, advocating for a better tax system.

We want to encourage these people to come over here and spend their money, and then we take a big chunk of it.

— Tim BurchettRepublican Congressman Tim Burchett of Tennessee criticizing the U.S. tax policy for international athletes.

Social media commentator William Copus noted that World Cup host countries typically sign broad tax exemption agreements. However, he pointed out that unlike previous hosts, the United States did not grant these exemptions. While FIFA and national federations secured federal tax-exempt status, individual players, coaches, and staff are subject to the default 30% federal withholding rate. Additionally, players face state "jock taxes" in every state where they played or practiced, with states like New Jersey (up to 10.75%) and California (13.3%) potentially pushing total U.S. tax bills to 40% of tournament earnings.

We’ve got to get a better tax system.

— Tim BurchettRepublican Congressman Tim Burchett of Tennessee calling for reform of the U.S. tax system.
DistantNews Editorial

Originally published by The Punch in English. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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