Spain could forfeit up to 30 per cent of the $50 million prize money it earned for winning the 2026 FIFA World Cup to United States federal taxes.
PUNCH Online reports that under US tax laws, income earned from activities performed in the country is generally taxable.
Payments to non-resident foreign athletes are typically subject to a 30 per cent federal withholding tax unless reduced by a tax treaty or another exemption.
Spain clinched the 2026 FIFA World Cup title after defeating Argentina 1-0 in the final at the New York New Jersey Stadium on Sunday, July 19.
According to FIFA, the champions will receive 34 million, as part of the governing body’s record $871 million prize fund for the expanded 48-team tournament.
Reacting to the potential tax burden, Republican Congressman Tim Burchett of Tennessee, as reported by Fox News on Tuesday, described it as excessive.
“I think it’s a rip-off,” Burchett told the platform.
“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 said.
Burchett argued that taxing international athletes at such a rate sends the wrong message as the United States prepares to host more major global sporting events.
“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.”
Commenting, a popular social media commentator, William Copus, known as The Feedski said World Cup host countries usually sign broad tax exemption agreements covering everyone involved, FIFA, the national federations, and the players.
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He, however, said unlike previous hosts such as South Africa, Brazil, Russia and Qatar, the United States did not grant the exemptions.
“While FIFA lobbied hard and eventually secured federal tax exempt status for itself and the national federations under section 501(c) of the tax code, that exemption stops at the federation level. Individual players, coaches, and staff are on their own.
“The default IRS withholding rate for foreign athletes earning income on US soil is 30% at the federal level. On top of that, players face state jock taxes in every state where they played or practiced. New Jersey, where the World Cup final was held, charges up to 10.75% state income tax and notably does not honor international tax treaties, meaning even players from countries with US tax agreements still owe New Jersey.
“California, where several group matches were played, charges 13.3%. Combined, players who spent significant time in high-tax states could face total US tax bills of up to 40% of their tournament earnings before their home country takes its own cut,” he said.
PUNCH Online could not independently verify these claims.
But the Democratic Congressman Jonathan Jackson of Illinois also criticised the potential tax rate.
“It’s wrong, and that kind of highlights something bigger,” Jackson said.
He described it as “a classic example of what’s wrong with our taxation system,” arguing that corporations should bear a greater share of the tax burden.
“They should be paying the taxes as opposed to having tax loopholes,” he said. “The people, the laborers that are working, they should not have to pay 30% of their income on taxes.”
Republican Congressman Burgess Owens of Utah also said the potential 30 per cent tax was “too much,” while praising the United States for hosting the World Cup.
“I have such an appreciation for soccer now,” Owens said. “I think it’s going to be a game changer for so many of our kids. And, so, I want to congratulate the president, everyone who made this happen.
“It is what it is here, unfortunately, in our country of taxes.”
Saheed is a journalist at Punch Newspapers with over two years of experience covering metro, technology, sports, politics, and human-interest stories. He focuses on producing clear, engaging reports across diverse beats. Saheed’s work reflects hands-on newsroom experience and a commitment to accurate and balanced journalism.
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Source: The Punch
