Shakira acquitted in tax fraud case in Spain as court orders $70 million to be returned

Spain’s highest court has cleared Colombian pop star Shakira of tax fraud and overturned a multimillion-euro fine imposed by the country’s tax authorities, marking a major legal victory for the singer after years of scrutiny over her finances and residency status.

Shakira acquitted in tax fraud case

According to court documents seen by Reuters, the court ruled in favor of the singer’s appeal against a 2021 decision by the Spanish tax agency that fined her 55 million euros, equivalent to about $64 million. The judges also ordered Spain’s finance ministry to repay Shakira more than 60 million euros, including interest payments, bringing the total repayment to more than $70 million.

The ruling centers on whether the singer met the legal threshold in 2011 to be classified as a Spanish tax resident. Under Spanish law, an individual is considered a tax resident if they spend more than 183 days in the country during a calendar year.

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Tax authorities argued that Shakira was effectively based in Spain because of her then-relationship with former FC Barcelona player Gerard Piqué and because much of her professional and personal life appeared to be linked to the country.

However, the High Court concluded that officials had not sufficiently demonstrated that she had spent enough time in Spain in the 2011 fiscal year to justify the tax penalties imposed on her.

In its decision, the court said the penalties were unlawfully based on “the assumption that the tax resident of the petitioner was in Spain in fiscal year 2011, a fact that was not proven.”

The decision applies only to the tax period of 2011 and does not affect separate proceedings concerning later years.

The Spanish tax authority said it intends to challenge the decision at the Supreme Court. Until a final decision is made, compensation ordered by the court will not be paid.

Shakira’s legal team welcomed the ruling, calling it the conclusion of a long and damaging legal battle.

Her lawyer, Jose Luis Prada, said the decision “comes after eight years of suffering that has taken an unacceptable toll, reflecting a lack of rigor in administrative practice.”

The same statement also included a response from Shakira herself, who said she hoped the ruling would prompt wider scrutiny of how tax authorities handle such cases.

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She said she hoped the sentence would set a precedent for “thousands of ordinary citizens who are abused and crushed every day by a system that finds them guilty and forces them to prove their innocence while facing financial and emotional ruin.”

The singer has faced numerous legal and financial disputes in Spain in recent years, largely linked to allegations related to her permanent residence and undeclared income.

In November 2023, Shakira reached a separate deal with prosecutors in Barcelona to avoid trial over allegations that she failed to pay €14.5 million in Spanish income tax between 2012 and 2014. As part of that settlement, she accepted the charges and agreed to pay a fine exceeding 7.3 million euros, roughly half of the amount allegedly owed.

However, the latest ruling represents a major reversal for Spanish tax authorities in one of the country’s most high-profile celebrity tax disputes. The agency’s planned appeal means the case is expected to continue before the Supreme Court in the coming months.