Spain Faces Potential 30% US Tax Withholding on $50m World Cup Prize

Fresh off their 1–0 victory over Argentina in the 2026 FIFA World Cup final at the New York New Jersey Stadium, Spain’s national team faces a significant reduction in its prize earnings due to United States tax regulations.

Under US federal tax laws, income generated from athletic activities performed within the country by non-resident foreign individuals is subject to a default 30 percent withholding tax. Combined with state-level “jock taxes” in host states such as New Jersey and California, overall tax obligations on tournament earnings could reach up to 40 percent.

While FIFA successfully secured federal tax exemption under section 501(c) of the US tax code for itself and participating national federations, the exemption does not automatically extend to individual players, coaches, and support staff.

The potential tax burden has sparked debate among US lawmakers from both political parties. Several members of the US House of Representatives have questioned the high rate, raising concerns about its potential impact on international athletes participating in major global events hosted within the country, while others noted that foreign competitors remain subject to standard US tax laws governing performance income on American soil.