Spain’s victory in the FIFA World Cup, accompanied by a $50 million prize, may encounter tax implications under US law following the 2026 tournament, which was jointly hosted by the United States, Canada, and Mexico. Since several pivotal matches took place on American soil, the US Internal Revenue Service (IRS) could impose taxes on income linked to activities conducted within the country.
IRS guidelines specify that foreign individuals and entities involved in World Cup-related events might have US tax responsibilities for earnings derived from work or services performed in the United States. This includes players, coaches, team officials, performers, media personnel, and businesses connected to the tournament. Even temporary presence in the US does not exempt them from potential tax liabilities on qualifying income earned during their stay.
Notably, the IRS will not automatically withhold a fixed portion from Spain’s entire $50 million prize. The ultimate tax obligation will depend on multiple factors such as the proportion of income considered US-sourced, FIFA’s payment mechanisms, relevant tax treaties, and how Spain’s football authorities allocate the prize money internally.
In a significant development, tax authorities from the three host nations have established a framework to allocate tournament-related compensation. This system is expected to account for the number of matches held in each country and the locations where associated activities occurred. Given that a large share of the 2026 World Cup was staged in the US, some earnings from the event may fall under American tax jurisdiction.
Meanwhile, Spain’s tax treaty with the United States could mitigate the tax burden. The treaty might offer relief or adjustments depending on the income type and the circumstances of the recipients. This agreement plays a crucial role in determining the final tax amount payable to US authorities.
While Spain’s World Cup triumph marks a historic sporting milestone, the financial rewards from such international events increasingly involve complex tax considerations across multiple countries. Ultimately, the amount owed to the US tax authorities will hinge on income classification, FIFA’s distribution process, and the application of international tax agreements.
