Spanish tax authorities forced to return more than $60M to singer Shakira

Spain’s National Court has ruled in favor of Colombian singer Shakira in a long-running tax dispute, ordering Spanish tax authorities to return more than €60 million ($67 million) in payments, penalties, and interest linked to the 2011 tax year.

The court concluded that Shakira was not a tax resident in Spain in 2011 because authorities failed to prove she should have been considered a fiscal resident in the country that year, according to a ruling published Monday.

The decision overturns tax assessments and penalties imposed by Spain’s tax agency over alleged unpaid income and wealth taxes from 2011.

In a statement sent to Spanish media after the ruling, the singer criticized Spain’s tax authorities and described herself as the target of a years-long campaign.

“After more than eight years enduring brutal public scrutiny, orchestrated campaigns to destroy my reputation and countless sleepless nights that affected my health and my family’s wellbeing, the National Court has finally set things straight,” she said.

“There was never any fraud, and the administration itself was never able to prove otherwise, simply because it was not true,” she added.

Spanish tax inspectors had argued that the singer established Spain as the center of her personal and economic life during her relationship with former Barcelona football player Gerard Pique.

However, the court found there was insufficient evidence to show Spain was her primary place of residence or economic activity in 2011, when she was on a world tour performing 120 concerts in 37 countries.

That year, she had no children in Spain, no home in Spain and did not spend enough time in the country to qualify as a tax resident, the court ruled.

The ruling can still be appealed to Spain’s Supreme Court.

It also does not affect a separate criminal case in which Shakira reached a settlement with prosecutors in 2023 over unpaid taxes for 2012-2014.

Spanish tax authorities have pursued several high-profile figures in recent years, including football players Lionel Messi and Cristiano Ronaldo, as well as coach Jose Mourinho, who were convicted or reached settlements in cases largely tied to image rights and tax residency.

Former Spain international Xabi Alonso fought charges brought against him and was acquitted of tax fraud charges by Spain’s Supreme Court.​​​​​​​