Shakira cleared of tax fraud, Spain ordered to repay $70 million

MADRID: Colombian pop star Shakira has been acquitted of tax fraud by Spain’s High Court, which overturned a €55 million fine imposed by tax authorities, according to a court document seen on Tuesday.

The court also ordered Spain’s Treasury to reimburse the singer more than €60 million (about $70 million), including interest, after ruling that prosecutors failed to prove she was a tax resident in Spain in 2011.

The judges said that Spain authorities did not establish that Shakira had spent more than 183 days in Spain that year — the threshold required under Spanish law for tax residency.

The ruling does not affect any subsequent tax years.

Spain’s tax agency had argued that Shakira’s links to the country, including her relationship with former FC Barcelona player Gerard Piqué, were sufficient to establish residency, but the court rejected the claim.

It said the penalties were unlawful as they were based on assumptions about her tax status that were not proven.

The tax agency said it would appeal the ruling to Spain’s Supreme Court, meaning no payment will be made until a final decision is reached.

Shakira’s lawyer welcomed the verdict, calling it the end of an “eight-year ordeal” that had caused significant personal and financial strain.

Shakira, in a separate statement, said she hoped the ruling would set a precedent for taxpayers facing similar disputes with authorities.

The decision comes after the singer previously reached a separate settlement in 2023 over a different tax case involving unpaid income tax between 2012 and 2014.