Culture Music Sports Celebrity Cinema Shows Politics
Home Sports Feature
Sports · Exclusive

Spain's World Cup Prize Faces Heavy Tax Hit from IRS and Hacienda

Spain's World Cup Prize Faces Heavy Tax Hit from IRS and Hacienda
Sports · 2026
Photo · Lucia Fernandez for Latino World News
By Lucia Fernandez Sports Editor Jul 21, 2026 3 min read

Spain’s national football team clinched its second World Cup title with a tense victory over Argentina at MetLife Stadium in New Jersey. The euphoria across the country was immediate, but the financial reality is more sobering: the $50 million prize from FIFA won’t reach the players’ pockets intact. Both the U.S. Internal Revenue Service and Spain’s tax agency, Hacienda, are set to take a significant cut.

According to Gestha, the union representing experts from the Spanish Tax Agency, the squad receives 45% of the prize—about $22.5 million—based on the agreement between the Royal Spanish Football Federation and the players. That works out to roughly $861,360 per player before taxes. But that’s just the starting point.

IRS and New Jersey Claim Their Share

Because the final was played on U.S. soil, the IRS has jurisdiction over income generated in the country, including sports prizes. Robert Raiola, a sports tax specialist at PKF O’Connor Davies, confirmed that the IRS will take a portion regardless of the athlete’s nationality. On top of that, New Jersey state income tax applies, adding another layer to the tax burden.

For players like Lamine Yamal, Pedri, or Rodri, this means the U.S. tax authorities get their cut first. The exact amount depends on individual circumstances, but the combined federal and state rates can be substantial.

Hacienda’s Final Blow for LaLiga Players

Once the U.S. takes its share, players residing in Spain face Hacienda’s progressive income tax, which can reach up to 49.5% depending on the autonomous community. For example, a player taxed in Catalonia might take home around €353,500 ($403,472), while one in Madrid could keep about €385,000 ($439,458). Gestha estimates that Hacienda will collect roughly €5 million from LaLiga players alone.

Players based abroad—such as Rodri, David Raya, or Mikel Merino—face a different scenario. Their tax liability depends on their residency and double-taxation treaties between Spain and their host countries. This complexity underscores how a World Cup win can become a cross-border tax puzzle.

The victory also sparked celebrations across the diaspora, with artists like Rosalía and Ester Expósito joining the festivities. But for the players, the financial aftermath is a reminder that even a world title comes with a price tag—one shared by two tax agencies.

More from this story

Next article · Don't miss

Nail Polish Remover Scam: How Criminals Are Erasing Checks and Draining Accounts

Criminal rings are using acetone to erase ink from stolen checks, rewriting them for larger amounts. The US Postal Inspection Service reports over $1.5 billion in annual losses. Switching to electronic payments and using black gel ink pens can help prevent fra

Read the story →
Nail Polish Remover Scam: How Criminals Are Erasing Checks and Draining Accounts