As anticipation builds for the expanded 48-team 2026 FIFA World Cup across the United States, Canada and Mexico, a less visible but deeply consequential issue is casting a shadow over many participating nations—particularly from Africa and other developing regions.

Unlike previous tournaments, several of these countries are bracing for significant financial strain due to tax obligations in the United States, raising concerns that participation in football’s biggest spectacle could come at a high economic cost.

According to an investigation conducted by the UK publication, The Guardian, at the centre of the issue is the inability of FIFA to secure a blanket tax exemption agreement with the U.S. government for all participating nations.

While FIFA itself enjoys tax-free status in the United States, a privilege dating back to the 1994 World Cup, this exemption does not extend to the 48 national associations competing this summer.

The result is a stark imbalance. Only 18 of the qualified countries have double taxation agreements (DTAs) with the United States, shielding them from federal taxes. The majority of these are European nations, alongside a handful of others such as Egypt, Morocco, South Africa, Australia, Canada and Mexico.

For African teams without such agreements, including several debutants and smaller footballing nations, the financial implications could be severe. Countries like Haiti and Cape Verde, for instance, face the prospect of higher tax liabilities than traditional powers such as England or France, whose federations are protected by DTAs.

This disparity effectively creates a two-tier system—one where wealthier and more diplomatically connected nations incur lower operational costs, while less-developed football associations shoulder heavier financial burdens.

Tax experts warn that the consequences could extend far beyond the tournament itself. Oriana Morrison, a consultant who has advised several football federations, noted that the funds lost to taxation could have otherwise been reinvested in grassroots football development.

For many African federations, World Cup participation is not just about prestige but also about economic opportunity. Prize money and associated revenues often fund infrastructure, youth programmes and domestic leagues. However, with U.S. federal corporate tax set at 21percent and top income tax rates reaching 37 percent, a significant portion of these earnings may be absorbed before they reach home federations.

Even for countries with DTAs, relief is partial. Under U.S. law, athletes and coaches must still pay taxes on income earned while performing in the country. This means high-profile figures such as Carlo Ancelotti, currently managing Brazil, could face dual taxation—both in Brazil and the United States.

In contrast, managers like Thomas Tuchel of England benefit from more favourable arrangements, paying taxes only in their home country due to existing agreements.

While wealthier federations may absorb these additional costs, smaller associations—many of them from Africa—are unlikely to have such financial flexibility.

Compounding the issue is FIFA’s fixed operational budget of $1.5 million per team, despite rising travel and accommodation costs in the United States. The daily allowance for delegation members has also been reduced from $850 at Qatar 2022 to $600 for 2026.