Shakira acquitted of tax fraud after 8-year legal battle in Spain: Spanish tax authorities ordered to refund millions

Dubai: After nearly a decade of legal scrutiny in Spain, Colombian pop icon Shakira has been formally acquitted of tax fraud charges, marking a major legal victory that also requires Spanish authorities to reimburse her millions in fines and penalties.

The ruling, issued by Spain’s High Court, concludes that prosecutors failed to prove Shakira met the threshold for Spanish tax residency in 201, a key factor in the case that determined whether she was legally required to pay income tax in the country.

Residency dispute at the centre of the case

The main question in the case was whether Shakira spent more than 183 days in Spain in 2011, which would classify her as a tax resident under Spanish law.

The court found that she had spent approximately 163 days in the country that year, making it below the legal threshold and therefore could not be considered a resident for tax purposes.

Authorities also failed to establish that her main financial or professional base was located in Spain during that period. As a result, the court ruled that the tax assessments and penalties imposed on her were not legally justified.

Millions in fines to be returned

The judgment overturns fines and penalties amounting to roughly €55 million (about $64–70 million), including interest, which Spanish tax authorities must now repay to the singer.

The court decision effectively clears Shakira of wrongdoing in the 2011 case and orders a full reimbursement of the sums previously collected.

In a statement to AFP Shakira said 'Every step of the process was leaked, distorted, and amplified, using my name and public image to send a threatening message to other taxpayers.'

However, Spanish tax authorities have indicated they may appeal the ruling to the Supreme Court, meaning the final payout could still be delayed.

Separate legal case remains unchanged

The acquittal applies only to the 2011 tax year and does not affect a separate case involving income from 2012 to 2014.

In that earlier case, Shakira reached a settlement in 2023 with Spanish prosecutors, agreeing to pay millions in fines and accepting a suspended sentence to avoid trial. That agreement remains legally separate and unaffected by the new ruling.