As excitement builds for the expanded 48-team 2026 FIFA World Cup set to be hosted across the United States, Canada, and Mexico, a major financial concern is emerging—especially for African and other developing nations.
Unlike previous editions, several participating countries are expected to face significant tax burdens in the United States, raising fears that competing at the global tournament could come with heavy economic costs.
An investigation by The Guardian revealed that FIFA was unable to secure a comprehensive tax exemption from the U.S. government for all participating nations. While FIFA itself enjoys tax-free status dating back to the 1994 World Cup, this benefit does not extend to the 48 national teams.
As a result, only 18 countries—mostly from Europe, along with a few others like Egypt, Morocco, South Africa, Australia, Canada, and Mexico—are protected through double taxation agreements (DTAs) with the United States.
For many African teams without such agreements, the financial implications could be substantial. Nations such as Haiti and Cape Verde may face higher tax obligations compared to football heavyweights like England and France, whose federations benefit from favourable tax treaties.
This disparity effectively creates a two-tier system, where wealthier and more diplomatically connected countries operate with lower financial pressure, while less-developed football nations shoulder greater costs.
Experts warn that the impact could extend beyond the tournament itself. Funds lost to taxation could otherwise be invested in grassroots football, infrastructure, and youth development—areas that rely heavily on World Cup revenues for many African federations.
With U.S. federal corporate tax at 21% and top income tax rates reaching 37%, a significant portion of earnings from the tournament could be deducted before reaching the teams’ home federations.
Even countries with DTAs are not entirely exempt. Players and coaches are still required to pay taxes on income earned within the United States. For instance, high-profile coaches like Carlo Ancelotti, currently managing Brazil, could face taxation in both the U.S. and their home country.
In contrast, managers such as Thomas Tuchel of England benefit from more favourable tax arrangements, allowing them to pay taxes only in their country of residence.
While wealthier football associations may be able to absorb these costs, smaller federations—many from Africa—could struggle with the added financial strain.
The situation is further complicated by FIFA’s fixed operational budget of $1.5 million per team, despite increasing travel and accommodation expenses in the U.S. Additionally, the daily allowance for team delegates has been reduced from $850 at the 2022 World Cup in Qatar to $600 for the 2026 tournament.