Morocco Among Few Nations Shielded From US. World Cup Tax Burden

Rabat – The 2026 World Cup will give every qualified team the same prize money from FIFA, but not every federation will keep the same amount. The difference comes down to taxes.

FIFA has not secured a full tax exemption from the United States for all 48 participating nations, meaning teams playing matches on American soil could face federal, state, and city taxes on tournament‑related income. 

That creates a divide between countries that have a double‑taxation treaty with the US. and those that do not.

Only 18 of the 48 qualified nations have such agreements, and Morocco is one of them. Alongside Australia, Egypt, and South Africa, 

Morocco stands out as one of the few non‑European countries protected by a tax treaty. And teams without these agreements could lose a significant portion of their earnings to the US taxes.

Morocco’s legal protection

Morocco’s protection is based on a real and longstanding agreement. The US.-Morocco tax convention was signed in Rabat on August 1, 1977, and came into force on December 30, 1981. The treaty was designed to prevent double taxation and applies to the US. federal income taxes.

However, the treaty does not completely remove Morocco from the issue. Under the US. Internal Revenue Service (IRS) guidance, Moroccan residents working temporarily in the US can be exempt from income tax if they meet certain conditions, including staying fewer than 183 days and being paid by a Moroccan employer that does not have a permanent establishment in the US.

The same IRS rules also specify that professional entertainers and athletes are not covered by these exemptions unless their services are performed for a nonprofit organization. 

The treaty itself allows the host country to tax athletes on income earned while performing there.

What this means for Morocco

In practice, this means Morocco’s football federation and staff are in a stronger position than many rivals, but players’ individual earnings may still be taxed in the US. 

The federation’s operational income and delegation expenses should benefit from treaty protection, while player bonuses and appearance fees could remain subject to local tax rules.

So Morocco is better protected than most, but not completely immune. The treaty reduces the risk but does not erase it.

Wider context

The financial picture for the 2026 World Cup is already tight. FIFA’s operational budget for each team is set at $1.5 million. At the same time, the daily living allowance per delegation member has dropped from $850 at the 2022 World Cup to $600 for 2026, even as travel and hotel costs rise across North America.

Canada and Mexico have granted full tax exemptions to all participating federations, meaning teams playing matches there will face fewer deductions. 

In contrast, the U.S. tax system varies sharply by state, ranging from 0% in Florida to 10.75% in New Jersey and 13.3% in California.

That variation could make a real difference depending on where teams play their group and knockout matches.

Morocco’s group‑stage matches confirm that the team will play entirely within the U.S. tax system.

June 13: Morocco vs Brazil at New York/New Jersey Stadium, East Rutherford, New Jersey

June 19: Morocco vs Scotland at Boston Stadium, Foxborough, Massachusetts

June 24: Morocco vs Haiti at Atlanta Stadium, Atlanta, Georgia

That means Morocco’s group‑stage fixtures are all in U.S. venues in New Jersey, Massachusetts, and Georgia, and will not benefit from the broader tax exemptions offered by Canada or Mexico.

Morocco’s 1977 tax convention with Washington gives it meaningful protection and should limit the impact of U.S. taxes on its World Cup income. 

But the treaty does not cover everything. Players’ earnings remain exposed, and the overall financial outcome will depend on where matches are held and how the IRS applies its rules.

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