Spanish Football Team Faces Potential Tax Burden After World Cup Victory

Following their victory in the 2026 FIFA World Cup, the Spanish football team could be facing a significant tax bill in the United States, potentially up to 30% of their $50 million prize. While major European nations may benefit from tax treaties, smaller countries without such agreements could face hefty tax liabilities. Individual players will also be responsible for US taxes on their earnings, regardless of any treaties. This situation highlights the financial challenges that smaller football associations may encounter in the wake of the tournament.

By Narendra Chaudhary Jul 23, 2026, 13:06 IST

Tax Implications for the Spanish Team

The Spanish national football team, celebrating their triumph at the 2026 FIFA World Cup, may encounter a significant tax obligation in the United States. A report indicates that they could be liable for up to 30% of their substantial $50 million prize money due to US federal taxes.

According to US tax regulations, the Internal Revenue Service (IRS) imposes taxes on any earnings generated by athletes or organizations within the country. Although Spain has a Double Taxation Avoidance Agreement (DTA) with the US, the extent of any tax relief on the prize money remains uncertain. Historically, host nations of the World Cup have provided complete tax exemptions to FIFA, teams, and players, but the US has not made similar announcements this time.

Challenges for Smaller Nations

Among the 48 nations that participated in the World Cup, only 18 have tax agreements with the US. Major European countries such as Spain, England, France, Germany, and Italy will benefit from some tax relief, along with nations like Canada, Mexico, Australia, Egypt, Morocco, and South Africa.

Conversely, countries like Brazil, Argentina, Japan, South Korea, Senegal, Nigeria, Haiti, and Curacao face a different scenario. Lacking a tax treaty, these nations are expected to incur substantial tax liabilities, which will disproportionately affect the football associations of smaller countries compared to their wealthier counterparts.

Tax Responsibilities for Players

Even with existing tax treaties, individual players are not exempt from US taxes on their personal income. They will still be required to fulfill their tax obligations in the US, while the treaties primarily offer relief to football associations and support staff.

The US imposes a corporate tax rate of 21% and a personal income tax that can reach up to 37%. Additionally, states like California (13.3%) and New Jersey (10.75%) impose their own taxes, adding to the financial burden. However, Florida, where some matches were held, does not have a state income tax. For instance, Brazil's coach Carlo Ancelotti will need to pay taxes in both Brazil and the US, while England's coach Thomas Tuchel benefits from the UK-US treaty, allowing him to avoid extra taxes in the US.