IRS May Tax Spain's World Cup Winnings at 30%

Spain, the reigning 2026 FIFA World Cup champions, won $50 million in prize money, which could be subject to federal taxes in the United States, potentially up to 30%. Representative Tim Burchett (R-Tenn.) expressed his disapproval of this tax obligation, stating that while American athletes are subject to similar taxes, it sends a negative message to foreign athletes. Under U.S. tax law, income earned from activities performed in the country is generally taxable, and payments to nonresident foreign athletes are typically subject to a 30% federal withholding unless reduced by a tax treaty or exception. Representative Jonathan Jackson (D-Ill.) criticized the high tax rate, suggesting it highlights broader issues within the U.S. tax system. He argued that corporations should bear more tax responsibility rather than workers. Burchett and Jackson both emphasized the importance of encouraging foreign visitors to spend money in the U.S. rather than imposing steep tax burdens. The total prize pool for the World Cup was $871 million, with $655 million allocated based on performance. All teams participating in games in the U.S. will have their earnings taxed to some extent.