- U.S. lawmakers are criticizing potential thirty percent tax withholding on Spain’s fifty million dollar World Cup prize.
- The Royal Spanish Football Federation may seek relief under the United States-Spain Income Tax Treaty.
- Combined federal and state taxes could reduce the award to six or seven million dollars after distributions.
House lawmakers criticized the prospect of U.S. taxes on Spain’s $50 million award after the team won the 2026 FIFA World Cup, while tax specialists said the final amount depends on how FIFA and Spain’s federation distribute the money.
Rep. Tim Burchett, R-Tenn., called the possible collection “a ripoff.” Rep. Jonathan Jackson, D-Ill., said “It’s wrong,” and Rep. Burgess Owens, R-Utah, said a 30% cut would be “too much.”
The dispute centers on income connected to matches played in the United States. U.S. rules generally tax income earned on American soil, including certain payments to nonresident foreign athletes.
Free toolSubstantial Presence Test CalculatorThe award reportedly went to the Royal Spanish Football Federation, or RFEF. Its treatment could differ from payments made directly to players or staff.
The classification remains central. The money could be treated as federation income, player compensation or a combination of both, with treaty provisions or other exemptions potentially reducing the final liability.
Lawmakers say the possible collection could discourage international events
Burchett, who represents Tennessee’s 2nd congressional district, criticized the potential tax during an interview on July 21, 2026. He said the United States should attract spending rather than take a large share afterward.
“I think it's a rip-off. I’m not a fan of it. 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, who represents Illinois’s 1st congressional district, made his remarks on July 22, 2026. He focused on the burden for players and other workers.
“It’s wrong, and that kind of highlights something bigger. [This is] a classic example of what’s wrong with our taxation system. The people, the laborers that are working, they should not have to pay 30% of their income on taxes.”
Owens separately described a 30% reduction as “too much.” The criticism has extended beyond Spain’s federation to the broader question of how the United States taxes foreign athletes working at international events.
The award is not automatically a tax bill for Spain’s entire team
Spain’s first-place FIFA award has been reported as $50 million, although some reports cite $51 million. Spain defeated Argentina 1-0 in the final on July 19, 2026.
The payment recipient affects the analysis. A national federation may face different treatment from a player receiving a match bonus or appearance fee. Individual players and staff can remain responsible for U.S. income tax on compensation tied to their work, even if a national association receives an exemption.
FIFA reportedly negotiated with the U.S. Treasury Department before the tournament so national associations could apply for federal tax-exempt status under Section 501(c). That status does not necessarily extend to individuals.
Ferran Torres, Spain’s final goal-scorer, and the coaching staff could therefore face separate treatment for bonuses, appearance fees or other compensation connected to matches in the United States.
For tax year 2026, filed in 2027, the reported dispute concerns the award and related compensation earned during the tournament. The RFEF is expected to seek relief under the U.S.-Spain Income Tax Treaty, although applying treaty provisions could require an administrative process.
Federal and New Jersey rules could overlap
The federal rate often cited for payments to nonresident foreign athletes is up to 30% withholding. That figure describes withholding, not necessarily the final liability after treaty provisions, exemptions or other calculations.
New Jersey adds a state-level issue. The final took place at MetLife Stadium in East Rutherford, New Jersey, where players may face the state’s so-called “jock tax” on income connected to their performances.
New Jersey does not always recognize international tax treaties in the same way as federal authorities. As a result, federal treaty relief may not resolve every state tax question.
Some reports estimate that federal and state authorities could claim as much as $44 million from the federation, players and staff combined. Those estimates suggest the RFEF could retain only $6 million to $7 million from its $50 million check.
Those figures combine multiple recipients and jurisdictions. They do not establish a final assessment.
| Reported figure or rule | What it describes |
|---|---|
| $50 million | Spain’s reported first-place FIFA award |
| $51 million | Higher amount cited in some reports |
| Up to 30% | Federal rate often referenced for nonresident foreign athletes |
| $44 million | Estimated combined liability involving the federation, players and staff |
| $6 million to $7 million | Estimated amount the RFEF could retain from a $50 million check |
The tournament left teams facing several tax jurisdictions
The 2026 World Cup was co-hosted by the United States, Canada and Mexico. Other teams and participants who earned income from matches in the United States could face related federal and state questions.
FIFA distributed a record $871 million during the 48-team tournament, including $655 million based on performance. Spain’s award formed part of that wider distribution.
The event also spread activity across 16 host cities. Rob Fagan, Senior Manager at KPMG’s Washington National Tax practice, rated its tax complexity “8 out of 10” because of the overlapping rules across three host countries and multiple jurisdictions.
That structure can affect the treatment of bonuses, appearance fees and federation payments. The tax position of a national association does not by itself settle how individual compensation is handled.
Robert Raiola, Director of the Sports and Entertainment Group at PKF O’Connor Davies, described the issue on July 19, 2026, in broader terms:
“It doesn't make a difference who wins the game. The IRS will get a piece,”
The dispute remains a matter of tax analysis and commentary rather than a binding IRS ruling or a reported federal court decision on Spain’s award. The RFEF’s expected treaty claim could lead to further administrative proceedings over the distribution and related payments.
This article is for informational purposes only and does not constitute tax advice. Consult a qualified tax professional or CPA about your specific situation.
