Shakira Cleared of Tax Fraud Charges in Spain

In a significant legal victory, a Spanish court has acquitted international pop icon Shakira of tax fraud, mandating the government to return over 55 million euros (approximately $64 million) in fines that were deemed incorrect. This information comes from a court document reviewed by The Associated Press on Monday.

This ruling marks the end of a prolonged period of tax-related disputes for the Colombian singer in Spain. The court’s decision is centered around the tax year 2011, during which Spanish authorities could not conclusively prove that Shakira had established residency in the country, according to the Madrid-based court’s findings.

Under Spanish law, an individual is considered a tax resident if they spend more than 183 days within the country during a calendar year. However, the court found that Shakira was present in Spain for only 163 days in 2011, thus not meeting the criteria for tax residency. Consequently, the court has ordered the Treasury to repay the taxes collected from her, including the accrued interest.

The Spanish tax agency had contended that Shakira’s ties to Spain were substantial, citing her relationship with former soccer star Gerard Piqué at the time and claiming she conducted her primary economic activities there.

Spanish authorities were only able to prove that Shakira lived in Spain that year for a total of 163 days, the court said, ordering the Treasury to reimburse the singer the tax paid plus interest.

Spain’s tax agency argued that at the time Shakira was tied to Spain through a relationship with now-retired soccer player Gerard Piqué, and that she based her main economic activities in the country.

But the High Court ruled that the relationship could not be legally equated to a marital one, nor was it proven that “the main center or base” of Shakira’s activities or economic interests in 2011 were directly or indirectly located in Spain.

“There was never any fraud, and the Tax Agency itself was never able to prove otherwise, simply because it wasn’t true,” Shakira, who had filed an appeal, said in a statement provided by her lawyers.

Spain’s Treasury is to reimburse the singer 60 million euros (almost $70 million), including interest, Shakira’s lawyer said.

“This resolution comes after an eight-year ordeal that has taken an unacceptable toll, reflecting a lack of rigor in administrative practices,” her attorney, José Luís Prada, said in a statement.

In 2023, in a separate tax fraud case, Shakira reached a deal with Spanish prosecutors to avoid a trial over charges that she did not pay Spanish income tax worth 14.5 million euros (then $15.8 million) between 2012 and 2014.

The singer accepted the charges and was forced to pay 7.3 million euros (then $8 million) in addition to the previously unpaid taxes and interest.

The “Hips Don’t Lie” singer was named in the 2017 “Paradise Papers” leaks that detailed the offshore tax arrangements of numerous high-profile individuals, including pop icons Madonna and U2’s Bono.

Spain’s tax authorities have over the past decade or so cracked down on soccer stars like Lionel Messi and Cristiano Ronaldo for not paying their full due in taxes. Those players were found guilty of tax evasion but avoided prison time thanks to a provision that allows a judge to waive sentences under two years in length for first-time offenders.