US taxes could significantly cut Spain's World Cup prize money

Spain's triumphant victory at the World Cup, earning them a $50 million prize, faces a potential financial blow due to U.S. tax regulations. The final match was held in New Jersey, making the prize money subject to American tax laws.

According to U.S. statutes, a portion of these winnings could be taxed at a rate of up to 30 percent. This means the Spanish team might see approximately $15 million of their prize money withheld. This situation has sparked criticism from U.S. politicians, with Republican Representative Tim Burchett labeling the policy a "robbery." Democratic Congressman Jonathan Jackson echoed these sentiments, deeming the tax structure "unfair."

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This is a robbery.

Politicians argue that such tax policies could negatively impact the United States' image, particularly as the country prepares to host the 2028 Los Angeles Olympics and other major international sporting events. "We want people to come and spend money here, but we are deterring them ourselves. We need a better tax system," Burchett stated, emphasizing the need for a more welcoming fiscal environment.

Tax experts, however, point out that the U.S. and Spain have a double taxation avoidance treaty. This agreement means that taxes paid in the U.S. can likely be credited against any tax liabilities in Spain, preventing the Spanish athletes from being taxed twice on the same income. The article also details the prize money distribution for the 2026 World Cup, noting significant increases compared to the 2022 tournament, with all 48 participating teams receiving a share.

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We want people to come and spend money here, but we are deterring them ourselves. We need a better tax system.