Spain’s financial reward for winning the 2026 FIFA World Cup may be significantly reduced, with reports suggesting the team could lose millions of dollars to US federal taxes.
Because the tournament was hosted in the United States, money earned from the competition could fall under American tax regulations, which generally require a 30 per cent withholding tax on payments made to non-resident foreign athletes unless a special exemption or tax agreement applies.
After edging Argentina 1-0 in the final played at the New York New Jersey Stadium on July 19, Spain claimed the world title and became eligible for FIFA’s $34 million winners’ prize from the tournament’s record $871 million prize fund.
The possibility of a large tax deduction has sparked criticism from US Congressman Tim Burchett, who described the policy as unfair during an interview with Fox News.
“I think it’s a rip-off. 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.”
Burchett argued that the United States should be making itself more attractive to international athletes instead of taking a large share of their earnings.
“I’m not a big fan of the IRS. 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.”
Adding to the discussion, social media commentator William Copus, popularly known as The Feedski, explained that countries hosting previous FIFA World Cups often negotiated tax waivers that protected FIFA, participating teams and players from similar deductions.
