Spain’s $50 Million World Cup Prize Could Face 30% US Tax

ijr.com

Spain’s $50 million prize for winning the 2026 FIFA World Cup could be subject to federal tax withholding of up to 30% in the United States, drawing criticism from lawmakers on both sides of the aisle. According to Fox…

According to Fox News, Rep. Tim Burchett, R-Tenn., called the potential tax bill "a rip-off," while noting that American athletes also face taxes on income earned in the country.

"I'm not a fan of it, but Americans have to do it," Burchett told Fox News Digital. "American professional athletes do it, so they knew that when they came over here."

Under U.S. tax law, income earned by nonresident foreign athletes for activities performed in the country can generally be subject to a 30% federal withholding rate, unless a tax treaty or another exception reduces the amount.

Rep. Jonathan Jackson, D-Ill., also criticized the potential tax burden, saying it points to broader problems with the U.S. tax system.

"It's wrong, and that kind of highlights something bigger," Jackson said.

Burchett argued that a significant tax obligation could send the wrong message as the United States prepares to host major international sporting events.

He said the country should be encouraging foreign athletes and visitors to spend money in the U.S. rather than taking a large portion of their earnings.

"We want to encourage these people to come over here and spend their money, and then we take a big chunk of it," Burchett said. "We've got to get a better tax system."

The 2026 World Cup featured a total prize pool of $871 million, with $655 million tied to tournament performance.

Teams that played games in the U.S. could have their earnings taxed, even if their only payment was for participating.

Jackson said the tax burden should be addressed as part of a larger debate over how income is taxed in the country. He argued that corporations should contribute more rather than workers carrying a greater share of the tax burden.

Rep. Burgess Owens, R-Utah, also said a potential 30% tax on the prize was "too much." The former NFL player, however, praised the World Cup for bringing more attention to soccer in the United States.

"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."

Owens also credited President Donald Trump and others involved in bringing the tournament to the country, while acknowledging the tax rules as part of the reality for international athletes competing in the U.S.