Did Mexico grant FIFA a full tax break for the World Cup?

Alone among the 3 co-hosts of the 2026 World Cup, Mexico has granted soccer’s planetary governing assemblage FIFA a afloat taxation exemption for the 40-day tourney involving 48 nationalist teams. 

The U.S. and Canada, the different co-hosts, lone agreed to specified taxation benefits astatine the national, authorities and section levels.

Still astir 7 months retired from the inaugural match, which volition beryllium held successful Mexico City’s Estadio Azteca connected June 11, the concession has caused consternation.

As a effect of the statement confirmed by Mexico’s Finance Ministry (SHCP) connected Monday, FIFA and immoderate companies it designates volition beryllium exempted from paying taxes during the 2026 World Cup matches held successful Mexico City, Monterrey and Guadalajara. 

The stipulation has its root successful FIFA’s 2026 Revenue Law, which features transitional articles declaring that companies “participating successful the organization, improvement and execution of activities related” to the tourney are exempt from paying taxes.

The SHCP’s connection “releases each individuals and ineligible entities” covered by the Revenue Law from taxation and administrative burdens.

The nonaccomplishment of imaginable taxation gross has caused a mild fuss successful immoderate corners, but politicians and taxation experts person defended the accord arsenic a bully concern decision.

The disapproval comes from the information that World Cup tourists buying merchandise, drinks oregon thing other from FIFA spouse brands volition not beryllium contributing to Mexico’s taxation revenues.

Sheinbaum emphasized this week that FIFA’s fiscal privileges volition use lone to the activities indispensable for the enactment and solemnisation of the event. (Daniel Augusto/Cuartoscuro)

Additionally host countries typically endure a fiscal deficit since they walk much wealth — investing billions successful infrastructure, stadiums and mentation — than they earn, due to the fact that the nonstop profits from summons and selling rights spell to FIFA.

However, Mexican President Claudia Sheinbaum has brushed speech the antagonistic comments, pointing retired that her authorities has worked with FIFA to bounds the presumption of the 10-year-deal woody that was signed successful 2018 during the Enrique Peña Nieto administration. 

Sheinbaum said talks with FIFA person sought to debar a disproportionate fiscal interaction and guarantee that the benefits are applied lone to the activities indispensable for the enactment and solemnisation of the event.

“The talks with FIFA purpose to found wide limits connected the taxation benefits primitively agreed upon, ensuring that these are applied responsibly and nether the nonstop supervision of the Mexican State,” an SHCP authoritative told ESPN.

Whereas Canada granted customs and taxation benefits chiefly connected the importation of goods and the U.S. forced FIFA to negociate with each of the 11 venues to get taxation benefits, Mexico was astatine a comparative disadvantage, taxation lawyer Miguel Ángel Rosas told ESPN. 

Rosas cited Mexico’s deficiency of modern infrastructure, saying: “The champion mode for Mexico to respond successful bid to big these types of events is to connection taxation incentives.” 

This attack could payment Mexico implicit time, helium said, due to the fact that “this could unfastened doors for different planetary events to instrumentality notice.” 

Deputy Claudia Anaya concurred, saying that “connectivity betwixt cities, road infrastructure, logistics and attraction of stadiums, airports, each of that” gives Canada and the U.S. a chiseled advantage.

“So, yes, sometimes the 1 who has the slightest indispensable connection the astir successful bid to [participate],” she said. 

In the end, the archetypal statement — which the SHCP insists volition not compromise taxation postulation oregon fiscal equity betwixt nationalist and overseas taxpayers — resulted successful Mexico being granted the close to big 13 games alternatively of 10.

It is estimated that 1.5 cardinal radical volition sojourn Mexico during the World Cup, with a projected economical interaction of astir US $3 billion.

With reports from ESPN, El País, Debate and El Economista