Spain could forfeit nearly 30 per cent of the prize money it earned from winning the 2026 FIFA World Cup because of United States tax laws, according to reports
Under US federal tax rules, income earned from activities carried out within the country is generally subject to taxation. Payments made to foreign athletes who are not US residents are usually subject to a 30 per cent withholding tax unless covered by a tax treaty or other exemption.
Spain lifted the 2026 FIFA World Cup trophy after defeating Argentina 1-0 in the final at the New York New Jersey Stadium on July 19.
FIFA had announced that the champions would receive $34 million from the tournament’s record $871 million prize fund for the expanded 48-team competition.
Reacting to the reported tax deduction, Republican Congressman Tim Burchett criticised the policy during an interview with Fox News.
“I think it’s a rip-off,” Burchett said. “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.”
He added that taxing international athletes could discourage participation in major sporting events hosted by the United States.
“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.
“We’ve got to get a better tax system.”
Social media commentator William Copus, widely known as The Feedski, also noted that previous World Cup host nations often negotiated tax exemptions covering FIFA, participating football associations and players, helping them avoid similar deductions.
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