Spain's World Cup prize money faces 30% US tax, rep calls it rip-off

Key Points:

• Spain, as the 2026 FIFA World Cup champions, won $50 million in prize money, but up to 30% of this amount could be subject to U.S. federal taxes due to income earned on American soil.
• U.S. tax law generally imposes a 30% federal withholding on payments to nonresident foreign athletes unless reduced by tax treaties or exceptions, a policy criticized by some lawmakers as discouraging foreign athletes from spending money in the U.S.
• Rep. Tim Burchett and Rep. Jonathan Jackson expressed concerns that the tax burden sends the wrong message and highlighted broader issues with the U.S. tax system, including calls for corporations to pay more taxes instead of workers.
• Rep. Burgess Owens acknowledged the high tax rate but emphasized the positive impact of hosting the World Cup in the U.S., noting his newfound appreciation for soccer and its potential influence on American youth.
• The World Cup's total prize pool was $871 million, with $655 million dependent on tournament performance, and all teams playing in U.S. games facing some level of taxable earnings.