Congress Members Challenge IRS Tax Plan on Spain’s World Cup Prize Money

Spain’s $50 million prize for winning the 2026 FIFA World Cup faces significant federal taxation in the United States, with up to 30% potentially owed to the IRS under current law. The prize pool distributed among World Cup participants totaled $871 million, with $655 million allocated based on tournament performance. Any team that competed in games held on U.S. soil will have earnings subject to taxation at varying rates.

Rep. Tim Burchett, R-Tenn., characterized the tax burden as counterproductive to the nation’s international standing. He argued that subjecting foreign athletes to steep tax obligations contradicts efforts to attract major sporting events and encourage international visitors to spend money domestically. Burchett emphasized that while American professional athletes navigate similar tax requirements, the approach sends the wrong message as the U.S. prepares to host additional international competitions.

Under federal tax law, payments to nonresident foreign athletes are generally subject to a 30% withholding rate unless reduced through tax treaties or specific exceptions. Income derived from activities conducted within American borders falls under IRS jurisdiction in nearly all circumstances.

Rep. Jonathan Jackson, D-Ill., criticized the tax structure as emblematic of broader systemic problems in the U.S. tax code. Jackson argued that corporations and wealthy entities exploit tax loopholes while workers bear disproportionate burdens, characterizing the World Cup taxation as a revealing example of inequitable policy.

Rep. Burgess Owens, R-Utah, a retired NFL player, agreed the 30% rate was excessive while expressing enthusiasm for soccer’s growing popularity in America following the World Cup. He credited the tournament’s success to administration efforts and predicted expanded youth participation in the sport.