Spain Could Lose Millions in World Cup Prize Money Over US Tax Rules

Spain's 2026 FIFA World Cup triumph could come with an unexpected financial setback, as reports suggest a significant portion of the team's prize money may be deducted under United States tax regulations.

La Roja secured their second World Cup title after edging Argentina 1-0 in the final, earning the tournament's top prize of $34 million from FIFA's record-breaking prize fund.

However, because much of the competition took place in the United States, the winnings may be subject to American tax laws governing income earned by non-residents.

According to reports, foreign athletes and sports organizations that generate income within the US can face a withholding tax of up to 30 percent unless protected by a tax treaty or granted a special exemption.

If applied in full, Spain could lose millions of dollars from the reward it received for winning the tournament.

The possibility has generated debate among politicians and sports observers. US Congressman Tim Burchett criticised the policy, arguing that taxing international athletes after they compete in the country sends the wrong message.

While acknowledging that similar tax rules also affect American athletes, he suggested such deductions could discourage future participation in major sporting events hosted in the United States.

The issue has also sparked discussion online, with analysts pointing out that previous World Cup host nations often negotiated tax exemptions for FIFA, participating football associations and players.

Such agreements helped ensure prize money was paid without significant deductions, something that may not have happened in this case.

The situation has renewed conversations about the financial implications of hosting global sporting events, particularly as international federations and national teams continue to navigate varying tax systems across different countries.

Although FIFA has yet to comment on the reported deductions, the matter highlights how off-the-pitch regulations can have a major financial impact even after sporting success has been achieved.

For Spain, lifting the World Cup trophy remains a historic achievement, but questions over the final amount of prize money they will receive are likely to remain until the taxation process is fully clarified.