Spain's World Cup heroes were hit with a hefty tax bill immediately after their 1-0 victory over Argentina in the final on Sunday. Luis de la Fuente's side secured an extra-time winner from Ferran Torres at MetLife Stadium, but the financial celebration was short-lived.
According to Gestha, the Spanish union representing Tax Agency experts, each of the 26 squad members received a gross payout of €754,701.92 (£640,500) for winning the World Cup. This sum aligns with the agreement with the Royal Spanish Football Federation (RFEF), where players receive 45% of the prize money FIFA awards to the governing body for winning the tournament—a total of around €44 million (£37.3 million). Around €19.8 million (£16.8 million) went to the players after they agreed to collect major bonuses only if they reached the latter rounds.
Tax Burden Varies by Region
However, players immediately had to part with a significant chunk due to income tax. Depending on where they play club football, personal income tax reaches 49.5% in some regions and around 45% in others. Each player loses a maximum of €370,000 (£314,000) to tax. The 17 squad members playing in Spain are subject to the country's personal income tax (IRPF) regulations, specifically of their Autonomous Community of residence. Since income levels are high, the entire bonus falls into the highest marginal tax bracket.
In the Community of Madrid, the marginal rate hovers around 45%, but it can exceed 50% in certain regions. It stands at 49% in the Basque Country, while in Catalonia—home to many players—it ranges from 47% to 49.5%. In the best-case scenario, a player in Spain receives €385,000 (£327,000) after tax; at 49.5%, that drops to €353,500 (£300,000). Players required to declare under these strict conditions include Lamine Yamal, Dani Olmo, Pau Cubarsi, Eric Garcia, Joan Garcia, Marc Pubill, Ferran Torres, Pedri, and Gavi. Spain's public treasury will collect around £5 million in taxes from these squad members.
Foreign-Based Players Face Different Rules
The situation differs for international players in foreign leagues, such as Mikel Merino, Pedro Porro, Martin Zubimendi, David Raya, Victor Munoz, Fabian Ruiz, and Rodri. They are subject to tax laws of their country of residence (England or France) and double taxation treaties, plus taxes levied in the three host countries: the United States, Mexico, and Portugal. The reward is substantial but not as large as might be expected given the historic achievement, especially considering bonuses for the 2010 World Cup were around €600,000 (£503,000).
