Spain’s World Cup payout may draw US taxes after final win
Spain’s $50 million FIFA prize could be partly taxable in the U.S., with players also facing Spanish and state-level obligations.
By Maya Lindqvist · Senior Technology Correspondent
3 min read
Spain’s 2026 World Cup win over Argentina came with a $50 million FIFA prize, but tax authorities may claim part of the money before players see their bonuses. The issue matters because the tournament was played in the United States, Canada and Mexico, and U.S. rules can tax foreign athletes on income tied to work performed on American soil.
RCM Legal said 17 members of Spain’s 26-man squad will also owe tax in Spain. The firm said Spanish tax residents are taxed on global income, including national-team bonuses, and cited FC Barcelona player Lamine Yamal as an example of a player in that category.
The U.S. system commonly called the “jock tax” applies to athletes who earn money from performances or services in the country, according to H&R Block. Similar rules can apply to entertainers and actors.
FIFA has often obtained tax exemptions from World Cup hosts, including South Africa, Brazil, Russia and Qatar after 2010. For the 2026 tournament, the IRS said in its World Cup tax guidance that foreign athletes are subject to federal income tax on income connected to services performed in the United States.
How the tax bill is divided
The IRS, Canada Revenue Agency and Mexico’s Servicio de Administración Tributaria reached a joint position on how to allocate World Cup compensation among the three host countries. According to the IRS, the method compares the number of matches a team played in each country with the team’s total matches.
Richard Konigsberg, national lead partner for entertainment and media at EisnerAmper, told Fortune the U.S. is not seeking to tax the same income twice. He said the question is which country has the right to collect tax on a given share of the earnings.
Spain has a tax treaty with the United States, as many countries do, to reduce the risk that the same income is fully taxed in both places. Konigsberg told Fortune that a Spanish resident who pays U.S. tax may receive a credit at home, though the final burden can amount to paying the higher of the two countries’ rates.
Andrew Wilford, director of state policy at the National Taxpayers Union Foundation, estimated in a June note that Spain faced an average all-in tax rate of 31.66%, with a 30% all-in rate tied to its base camp. That analysis was published before the tournament ended and did not calculate Spain’s final tax rate after winning the title.
State taxes may add to the cost
Spain played World Cup matches in Georgia, California, Texas and New Jersey, according to Fortune. Konigsberg said state-level tax obligations could raise the overall burden, with New Jersey or California potentially pushing the combined rate to roughly 36% to 41%.
The $50 million FIFA prize is paid to the Royal Spanish Football Federation, which then distributes money to players. RCM Legal said the agreement between the federation and the squad allocates 45% of the winnings to players as a bonus.
Konigsberg told Fortune that bonus money is generally treated as another form of compensation. That means it is usually allocated based on where the services were performed, in this case where matches were played.
The exact payment mechanics remain unclear. Konigsberg said FIFA’s agreements with national federations and Spain’s arrangements with its players are not fully public, making the final tax treatment dependent on documents outside public view.
This story draws on original reporting from Fortune.