Shakira: Singer Settles Spanish Tax Fraud Case With $7.5m Fine

The singer paid a €7.5 million (£6.5 million) fine; if proven guilty, the prosecution had sought an eight-year prison sentence and a €23.8 million (£20.8 million) punishment.

She had been charged in a Barcelona court with tax fraud for €14.5 million (£12.7 million).

Shakira claimed she made her settlement “with the best interest of my kids at heart,” despite her continuous denials of any wrongdoing.

Her children “do not want to see their mom sacrifice her personal well-being in this fight,” she stated in a lengthy statement.

The artist had earlier chosen to go with a trial over a plea bargain the prosecutors had offered.

“I have always tried to do what’s right and set a good example for others throughout my career,” the speaker stated.

Regretfully, and in spite of these attempts, Spanish tax officials prosecuted a case against me, just as they have done with several high-profile people and professional athletes, depleting their resources—time, energy, and peace of mind—for years at a time.

“Even though my attorneys were certain that I would win the trial and prove my innocence, I have decided to end this dispute in the best interests of my children, who do not want to witness their mother jeopardize her health in this struggle.”

“It’s time to move past the emotional strain and stress of the past few years and concentrate on the things I love—my kids and all the opportunities to come in my career,” she continued.

Conflict regarding residency

Shakira’s residency status between 2012 and 2014, when prosecutors said she was residing in Spain but had her official residence listed elsewhere, is at the heart of this dispute.

For tax purposes, anyone who stays in Spain for more than six months is considered a resident, according to Spanish law. Shakira claims that Spain was not her primary residence at the time.

Prosecutors released a document in July claiming she purchased a home in Barcelona in 2012, which she and her then-partner, Barcelona football player Gerard Piqué, used as their family residence.

According to her attorneys, she made the most of her money from foreign tours up until 2014 and travelled outside of Spain frequently.

When the Spanish tax authorities learned that I was seeing a Spanish national, they became really excited. She told Elle magazine, “It’s obvious they wanted to chase that money no matter what.”

Shakira declared Spain to be her place of residence for tax purposes in 2015. She said she has paid €17.2m (£15m) in tax and has no outstanding debts.

In a separate case in 2019, Mr Piqué was fined €2.1m (£1.8m) by the Spanish national court for evading tax between 2008 and 2010.

The couple announced in early June that they had split up after 11 years. They have two sons together, aged seven and nine