Shakira in line for 55m payout as Spanish court rules tax fines were wrong

"The court said the agency had failed to prove that Shakira had spent more than 183 days in Spain that year, which would have obliged her to pay personal income tax in the country. On the contrary, the court understands that Shakira's stay in our country was 163 days and that the tax agency has therefore not proved that the singer had core economic interests in Spain as set out in the terms established [by law], the statement said."

"The court ordered the tax agency to return the amounts it had fined Shakira and to pay her interest and costs. However, it also pointed out that its decision which can be appealed against in the supreme court related only to the 2011 tax case."

"In a statement released on Monday, the Audiencia Nacional said it had accepted an appeal from Shakira against the fine she was handed five years ago after the Agencia Tributaria claimed she had not paid the necessary tax in Spain in 2011. At that time, the singer was in a relationship with the FC Barcelona player Gerard Pique."

"In November 2023, the singer reached a settlement with prosecutors to avoid a trial in Barcelona over charges she had failed to pay 14.5m (12.7m) in Spanish income tax between 2012 and 2014. As part of the deal, she accepted the charges and a fine of 50% of the amount owed, more than 7.3m. She also accepted a further fine of 438,000 to avoid a three-year prison sentence."

A Madrid court ordered Spain’s tax authority to repay more than €55m to Shakira. The ruling followed an appeal against large fines imposed five years earlier. The tax authority had claimed she owed personal income tax in Spain for 2011. The court found the authority failed to prove she spent more than 183 days in Spain that year. The court determined her stay was 163 days and that the tax authority therefore did not prove she had core economic interests in Spain under legal criteria. The court ordered repayment of fined amounts plus interest and costs, limiting the decision to the 2011 tax case. Shakira later settled other Spanish tax charges for 2012 to 2014.

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