Spanish Court Clears Shakira of €49m Tax Fraud Penalties

A Spanish High Court has ruled in favor of pop icon Shakira, striking down a tax claim that demanded around €49 million (£43 million) in back taxes and penalties. The court ruled that the state failed to prove she was a resident for tax purposes during the 2011 fiscal year.

The total amount contested included €24 million in income tax and nearly €25 million in fines for what tax authorities had previously labeled a "very serious" infringement. However, Spain's tax agency announced it intends to appeal this decision to the Supreme Court, meaning any payouts or refunds will be frozen until a final ruling is delivered.

Following the verdict, the 49-year-old "Hips Don't Lie" singer released a scathing statement, saying the court had "finally set the record straight" after she spent eight years enduring a brutal public campaign aimed at destroying her reputation.

"There was never any fraud, and the Administration itself could never prove otherwise, simply because it wasn't true," Shakira said. "Yet, for nearly a decade, I was treated as guilty. Every step of the process was leaked and distorted to send a threatening message to other taxpayers. Today, that narrative crumbles."

The High Court found the state's penalties unlawful because they relied on the unproven assumption that Spain was her primary tax residence in 2011. Legal records showed the singer spent 163 days in Spain that financial year—20 days short of the 183-day threshold required by law to be classified as a resident for tax purposes. This specific case does not involve her subsequent tax years.

Shakira previously lived in Barcelona with her former partner, Spanish football star Gerard Piqué, for over a decade after meeting during the 2010 World Cup.

This ruling marks a major victory in her long-standing legal battles with Spain's revenue services. In 2023, she avoided jail time by striking a last-minute deal with Spanish prosecutors, paying a €7.5 million fine to settle separate tax fraud charges covering 2012–2014, noting she settled to protect her children. Furthermore, in 2024, Spanish courts dropped a separate investigation into her 2018 tax filings due to a lack of evidence.

The landmark legal win comes at a high point in the singer's career. Shakira is currently preparing to wrap up her Las Mujeres Ya No Lloran (Women Don't Cry Anymore) world tour with a residency in Madrid this September. She is also slated to perform alongside Madonna and BTS at the upcoming FIFA Men's World Cup final half-time show, following a historic free concert earlier this month that drew two million fans to Copacabana beach in Rio de Janeiro.