Spain

Spain's $50M World Cup Prize Money Faces US Tax

Is this a damaging rip-off or an overblown concern with easy workarounds?

Published 3 days ago

Spain's $50M World Cup Prize Money Faces US Tax

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Above: Spain coach Luis de la Fuente lifts the FIFA World Cup trophy at New York New Jersey Stadium on July 19. Image credit: Justin Setterfield/Getty Images

The Spin

Establishment-critical narrative

The IRS taxing Spain's $50 million World Cup prize is a rip-off that sends the wrong message to the world. Money earned on American soil is taxable, sure, but hitting foreign athletes with up to 30% federal withholding discourages international competitors from wanting to play in the United States. Washington should be rolling out the welcome mat, not picking winners' pockets.

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Pro-establishment narrative

The panic over Spain losing its $50 million World Cup prize to the IRS is overblown. The prize goes to the Royal Spanish Football Federation, not individual players, and FIFA and national federations are likely to secure U.S. tax exemptions anyway. Players can offset any U.S.-sourced taxes through treaties and home-country credits, meaning Spain almost certainly keeps the bulk of that record payout.

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