US Taxes Could Claim Part of Spain’s $50M World Cup Prize

The U.S. Internal Revenue Service can withhold up to 30 percent of the prize money, which FIFA awarded to the Spanish national team after their victory in the 2026 tournament held across the United States. The withholding applies because the competition took place on U.S. territory, and no blanket tax exemption was granted for the event.

Individual players and coaching staff also face state-level taxes known as "jock taxes" in jurisdictions where they played matches. These taxes vary by state and are calculated based on the number of games and days spent in each location, potentially reducing take-home pay further.

Spain's soccer federation may seek to recover some of the withheld amounts by filing for refunds or claiming foreign tax credits in Spain, though the process can be lengthy and uncertain. The total tax liability depends on the final prize distribution and the specific state tax laws applicable to each team member.

The U.S. tax treatment of international sports prizes has drawn criticism from some foreign teams and sports organizations, who argue it creates an uneven playing field. However, U.S. tax law generally requires withholding on income earned by nonresident aliens from U.S.-source activities, including prize money from events held in the country.