IRS Tax Rules on Spain's World Cup Winnings Spark Congressional Debate
The potential taxation of Spain's $50 million FIFA World Cup prize money by the IRS has ignited discussions among U.S. lawmakers regarding existing tax policies for international sporting events and foreign athletes.
Politics·

Spain, as the victorious nation in the 2026 FIFA World Cup, secured a substantial $50 million in prize money. However, a considerable portion of these winnings could become subject to federal taxation in the United States, potentially reaching as high as 30%.
Generally, income derived from activities performed within the United States is considered taxable by the Internal Revenue Service (IRS). Under current U.S. tax regulations, specific payments made to nonresident foreign athletes are typically subject to a 30% federal withholding rate, unless this rate is mitigated by a relevant tax treaty or another applicable exemption.
One perspective offered on the matter suggests that this taxation aligns with existing practices. "Americans have to do it. American professional athletes do it, so they knew that when they came over here," one individual noted.
Lawmakers Express Concerns Over Potential Tax Burden
The prospect of a high tax rate on Spain’s prize money has drawn criticism from several U.S. lawmakers. Representative Jonathan Jackson (D-Ill.) characterized the situation as "wrong" and indicative of a larger systemic issue. "It's wrong, and that kind of highlights something bigger," he stated.
Representative Tim Burchett (R-Tenn.) contended that such a significant tax burden sends an undesirable message, especially as the United States prepares to host a growing number of major international sporting events. He argued that the nation should be encouraging foreign athletes and visitors to spend their money domestically, rather than imposing substantial tax obligations.
"I'm not a big fan of the IRS," Burchett 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."
Jackson further extended his critique to the broader U.S. tax code, advocating for corporations to bear a greater share of tax responsibilities compared to individual workers. He referred to the situation as a "classic example of what’s wrong with our taxation system."
"They should be paying the taxes as opposed to having tax loopholes," Jackson asserted. "The people, the laborers that are working, they should not have to pay 30% of their income on taxes."
Representative Burgess Owens (R-Utah) echoed his colleagues' sentiment that a potential 30% tax on the prize money is "too much." However, he also emphasized the broader significance of the U.S. hosting the World Cup. As a retired NFL player, Owens shared how the experience unexpectedly fostered his interest in soccer, a sport he had previously paid little attention to before the tournament.
"It is what it is here, unfortunately, in our country of taxes," Owens remarked.
Broader Implications for International Competitions
The total prize pool for the World Cup amounted to $871 million, with $655 million of that sum allocated based on team performance throughout the tournament. All teams that participated in games held in the United States, even if their earnings were solely for participation, will see some portion of their income subjected to taxation.
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