What’s more impressive than Iga Swiatek’s 6-0, 6-0 victory over Amanda Anisimova and Jannik Sinner’s triumph over Roland Garros champion and top rival Carlos Alcaraz at Wimbledon this past weekend? The £3 million (approximately $4.05 million) in prize money that the women’s and men’s champions each received. The record-breaking prize money marked an 11% increase from the previous year. Unfortunately, those winnings will be cut nearly in half before either champion even has a chance to board their flight back home, as taxation takes a substantial bite out of the winnings.
Taxation of Americans, particularly of the ultra-wealthy, is a front-and-center topic, especially considering the recently enacted One Big Beautiful Bill Act. You might be surprised to learn that Uncle Sam isn’t as greedy as some of the other countries regarding taxation of foreign athletes.
U.K. Taxation
Let’s start with the U.K.’s tax regulations for foreign athletes. The U.K. tax regime not only taxes the tournament winnings but also targets endorsement earnings from equipment used in the tournament. Winners, therefore, face an initial withholding tax of 20% before paying a tax up to 45% after related expenses are deducted. According to Forbes, Sinner and Swiatek will likely be hit with an effective tax rate of 36.52%, reducing their winnings to approximately £1.95 million.
For at least one of the champions, the tax burden doesn’t end in the United Kingdom. Depending on the player’s country of residence, additional taxes may apply. Italian Jannik Sinner, whose primary residence is Monaco, lucks out and faces no additional taxation. Iga Swiatek, on the other hand, faces an extra 4% tax in her home country of Poland, further reducing her net earnings.
Monaco’s tax-free status has attracted numerous tennis stars, including Novak Djokovic, Daniil Medvedev, Alexander Zverev and Stefanos Tsitsipas.
Meanwhile, runner-up American Anisimova’s £1.52 million (approximately $2 million) prize earnings would be reduced by more than $700,000 to $1.2 million if taxed at the 36.52% rate. While a tax credit will help Anisimova offset any double taxation, the United States also requires additional tax payments, including self-employment levies or an additional Medicare surtax, lowering that amount further.
Other Countries
How does the U.K.’s taxation of tennis winners compare to other countries’ tax regimes? Last month, the French Open winners were awarded €2.55 million (approximately $2.95 million) each, with Alcaraz defeating Sinner and American Coco Gauff claiming victory over Belarusian Aryna Sabalenka. Both winners were subject to France’s highest tax bracket, effective for any net income over €180,648, set at an eye-watering 45%. Alcaraz also faces Spain’s highest income tax rate of 47%, though he would receive a tax credit for the taxes already paid in France. The young tennis star, whose net worth is approximately $40 million, would likely also be subject to Spain’s wealth tax levied on the country’s wealthiest residents. Gauff, similar to Anisimova, would receive a tax credit to prevent double taxation but might be subject to additional U.S. taxes.
The tennis elite are now preparing for the last Grand Slam of the year, the U.S. Open Championships in New York City. The prize money for this year’s championship hasn’t yet been announced, but according to the Internal Revenue Service, winners can expect a 30% flat withholding tax on the gross amount of U.S.-sourced income paid to foreign athletes.
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