Colombian singer Shakira has been exonerated of tax fraud charges by Spain’s High Court, which annulled a €55 million penalty previously imposed by the country’s tax authorities. The court also mandated that Spain’s Treasury repay the artist more than €60 million (approximately $70 million), including accrued interest.
The ruling was based on the court’s finding that prosecutors failed to demonstrate Shakira’s tax residency in Spain during 2011. Specifically, the judges concluded that the singer did not spend the required minimum of 183 days in Spain that year, a key criterion under Spanish tax law for establishing residency.
Notably, this verdict applies solely to the 2011 tax year and does not impact any subsequent fiscal periods. Spain’s tax agency had contended that Shakira’s connections to the country, including her relationship with former FC Barcelona footballer Gerard Piqué, were sufficient grounds to classify her as a resident for tax purposes. However, the court dismissed these arguments, deeming the penalties unlawful as they were founded on unproven assumptions about her residency status.
Meanwhile, the tax agency announced its intention to appeal the decision at Spain’s Supreme Court, which means the repayment will be withheld until a final judgment is rendered.
Shakira’s legal representative described the outcome as the conclusion of an “eight-year ordeal” that had imposed considerable personal and financial difficulties on the singer. In a separate statement, Shakira expressed hope that the ruling would establish a precedent for other taxpayers engaged in similar disputes with tax authorities.
This development follows a prior settlement Shakira reached in 2023 concerning a different tax case related to unpaid income tax from 2012 to 2014.
