Shakira acquitted in Spain tax fraud case as court orders return of $70 million

Spain’s High Court has acquitted Colombian pop star Shakira of tax fraud and overturned a multi-million euro penalty imposed by the country’s tax authorities, marking a significant 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 favour of the singer’s appeal against a 2021 decision by Spain’s tax agency, which had fined her 55 million euros, equivalent to roughly $64 million. The judges also ordered Spain’s Treasury to reimburse Shakira more than 60 million euros, including interest payments, bringing the total repayment to more than $70 million.

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

Tax authorities had argued that Shakira was effectively based in Spain because of her relationship at the time with former Gerard Piqué, who played for FC Barcelona, and because much of her professional and personal life appeared linked to the country.

However, the High Court concluded that officials failed to sufficiently prove that she had spent enough time in Spain during the 2011 fiscal year to justify the tax penalties imposed against her.

In its ruling, the court stated that the sanctions had been unlawfully based on “the assumption that the appellant's tax residence was in Spain for the 2011 fiscal year, ‌a ⁠fact which has not been proven”.

The decision only applies to the 2011 tax year and does not affect separate proceedings involving later years.

Spain’s tax agency has said it intends to challenge the decision before the Supreme Court. Until a final ruling is reached, the reimbursement ordered by the court will not be paid.

Shakira’s legal team welcomed the judgment, describing it as the conclusion of a prolonged and damaging legal battle.

Her lawyer, Jose Luis Prada, said the ruling “comes after an eight-year ordeal that has taken an unacceptable toll, reflecting a lack of rigour ⁠in administrative practice”.

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

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

The singer has faced multiple legal and financial disputes in Spain in recent years, largely tied to allegations surrounding her residency and undeclared income.

In November 2023, Shakira reached a separate agreement with prosecutors in Barcelona in order to avoid a trial over accusations that she failed to pay 14.5 million euros 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.

The latest ruling nevertheless represents a major reversal for Spain’s 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.