Shakira Acquitted in Spanish Tax Fraud Case, Court Orders Refund of Millions

A Spanish court has acquitted Colombian pop star Shakira in a tax fraud case linked to the 2011 tax year, ruling that prosecutors failed to prove she was a tax resident in Spain at the time.

The Madrid-based court ordered Spain’s Treasury to reimburse the singer more than $87 million Cdn in taxes, fines and interest. Her lawyer later said the total reimbursement, including accrued interest, would amount to about $95 million Cdn.

Under Spanish law, individuals must spend more than 183 days in the country within a year to qualify as tax residents. The court found that authorities were only able to establish that Shakira spent 163 days in Spain in 2011.

Spanish tax authorities had argued that the singer’s relationship with former Barcelona defender Gerard Piqué and her economic activities tied her to the country. The court, however, ruled that the relationship could not legally be treated as a marital union and that there was insufficient evidence showing Spain was the main base of her economic interests that year.

“There was never any fraud and the Tax Agency itself was never able to prove otherwise, simply because it wasn’t true,” Shakira said in a statement released through her lawyers.

Her lawyer, José Luís Prada, described the ruling as the end of an “eight-year ordeal” that reflected “a lack of rigour in administrative practices.”

Spain’s Tax Agency said it would appeal the decision to the Supreme Court, meaning no reimbursement will be made until a final ruling is issued.

The case is separate from a 2023 agreement in which Shakira accepted charges and paid a fine to avoid trial over allegations she failed to pay roughly $23 million Cdn in taxes between 2012 and 2014.

Spanish authorities have pursued similar tax cases in recent years against football stars including Lionel Messi and Cristiano Ronaldo, both of whom were found guilty of tax evasion but avoided prison sentences under Spanish law for first-time offenders.