Mexico Announces it Will Waive Taxes for FIFA and its Partners

Mexico is planning to bring in some impressive revenue during the 2026 World Cup, but not from FIFA.

Mexican officials announced that FIFA and its designated partners will be able to operate tax-free for the matches being hosted in the country. Lawmakers added it to the country’s 2026 Federal Revenue Law, assuring soccer’s governing body that the offer won’t be rescinded ahead of June’s kickoff.

Canada and the US both negotiated tax rates with FIFA, refusing to waive them altogether. 

Several Companies to be Included in Exemption

While FIFA is the most significant force behind the 2026 World Cup, a wide range of partners play a crucial role throughout the sport’s top tournament. All of those partners will be included in FIFA’s tax exemption.

“It applies to all companies directly involved in organizing the World Cup,” Senator Raul Morón Orozco told ESPN. “All those participating, all companies promoting the World Cup. Also, television stations broadcasting or reporting on the World Cup and all hotel and travel groups, etc.”

Mexico has requested that FIFA provide it with the list of partners to be included in the exemption. 

Mexico Focuses on Increasing Tax Revenue

There was some surprise at Mexico agreeing to forgo a source of tax revenue, but a closer look reveals it is a small part of a larger strategy. 

Mexican lawmakers have been pushing hard to increase tax revenue ahead of the World Cup. They believe sports betting could provide a massive boost, leading the country to begin reining in its loosely regulated market.

The country is currently considering a proposal to place a flat 50% tax rate for all online betting operators. This includes sportsbooks and casinos, which have operated in a grey area in the country for years. While some operators are expected to push back, the number of visitors traveling to Mexico for the World Cup will make continuing to operate in the country well worth their while. 

Exemption Could Lead to More Benefits

While anticipation around the 2026 World Cup is already high, concerns remain over attending matches in the US. Political infighting and a crackdown on immigration make attending matches there dangerous for fans from some countries. That could lead them to choose to participate in matches in Mexico, where it will be far less expensive to stay and attend matches. 

There is also a concern that US President Trump will force FIFA to move matches. While those will most certainly remain in the US, FIFA technically has the final say. If it sees issues or has tensions with the White House rise, it would be highly incentivized to move more matches south of the border.