The Spanish national football team, La Roja, has won the 2026 World Cup title after defeating Argentina in the final, solidifying its reputation as one of the strongest teams in the world. With a record of 2 wins, 1 draw, and 0 losses in 3 games (7 points), and a 5-game winning streak, Spain has shown its dominance in the tournament. However, the victory could be affected by a potential claim from the US IRS on the €43.7 million prize.
Could the IRS withhold part of Spain's prize?
Under US law, payments to non-resident foreign athletes are subject to a 30% federal withholding. While it is unclear whether Spain's World Cup prize money would fall under these rules, reports suggest that the IRS could seek a share of the €43.7 million. If the 30% tax is applied, Spain's prize could be reduced by about €13 million.
Representative Tim Burchett, although disagreeing with the idea of taxing participating teams, noted that "American professional athletes do it, so they knew that when they came over here." In previous editions, FIFA negotiated tax relief for participating teams, but it is unclear whether a similar agreement was in place for 2026.
What impact will it have on Spain?
The Spanish government does not plan to withhold part of the World Cup prize, but it will benefit from taxes on the 17 resident players who live and play in the country, with an estimated revenue of €6 million. Additionally, La Roja's global success could boost Spanish brands, tourism, and exports, with an estimated economic impact of €4 billion.
What's next for La Roja?
With their next match scheduled against England on September 26, 2026, Spain will look to maintain their dominance. After their 1-0 victory over Argentina on July 19, 2026, the team leads the tournament with a 4-point advantage over the Cape Verde Islands, with 5 goals scored and none conceded.
