IRS Expected to Tax Part of Spain's FIFA World Cup Prize Money after U.S.- Hosted Tournament

Spain's historic victory at the 2026 FIFA World Cup brought celebrations across the country, but it also came with an unexpected financial issue. While FIFA awarded Spain a record $51 million prize for winning the tournament, tax experts say the team and its federation may not get to keep the full amount because part of the money could be taxed in the United States.

The 2026 FIFA World Cup was jointly hosted by the United States, Canada, and Mexico, with most matches taking place in the United States, including the final. Under U.S. tax rules, income earned from activities performed on American soil can be subject to federal taxation, even if the people or organizations receiving the money are based in another country.

This has led many people online to claim that the IRS is "taking" Spain's entire World Cup prize. However, tax experts say the situation is more complicated that that. the IRS is not expected to simply take half of the $51 million prize. Instead, only the portion of the income that is considered to have been earned in the United States may be subject to U.S. taxes, and the final amount depends on tax laws, international agreements, and how the prize money is distributed.

Another important detail is that FIFA pays the prize money to the Spanish Football Federation, not directly to individual players. If the federation later distributes bonuses to players, coaches, or staff, those payments could have separate tax consequences depending on where the income was earned and the tax rules that apply to each person.

Tax experts also point out to the tax treaty between the United States and Spain, which i designed to reduce or prevent double taxation in certain situations. While the treaty may provide relief for some income, it does not automatically remove tax obligation. The exact amount owed depends on several legal and financial factors, meaning no final figure has been officially confirmed.

In addition to federal taxes, athletes and teams may also face state income taxes, often called "jock taxes." Since the World Cup final was played in New Jersey, income connected to that match could also fall under New Jersey's tax laws. State taxes are separate from federal taxes and are generally not covered by international tax treaties.

The issue is not limited to Spain. According to tax guidance released ahead of the tournament, all foreign teams, athletes, coaches, officials, and other participants who earned income from World Cup-related activities in the United States may have some level of U.S. tax responsibility. That means many national teams participating in the tournament could receive tax bills, not only the champions.

The discussion has attracted widespread attention on social media, where many posts suggested that the IRS would take nearly half of Spain's prize money. While it is true that U.S. taxes can apply to income earned during the tournament, experts caution that the final tax bill depends on detailed calculations involving where matches were played, how income is allocated between the three host countries, applicable treaties, and other legal factors.

For Spain, the World Cup title remains a major sporting achievement, but the financial side of the victory highlights how hosting an international tournament across multiple countries can create complex tax obligations. Lawyers and tax specialists are expected to determine the final amount owed once all relevant rules and agreements are applied.