Colombian pop star Shakira has secured a massive legal victory against Spain’s tax authorities. The Audiencia Nacional (National Court) has officially annulled penalties relating to the 2011 tax year and ordered the Treasury to refund the singer over €60 mln in improperly collected fines, legal fees and accumulated interest, El Mundo reports.
The landmark ruling overturns a July 2021 decision by the Central Economic Administrative Tribunal which had previously accused the artist of defrauding the state on both her Personal Income Tax and Wealth Tax.
The 183-day rule
The court ultimately concluded that the Spanish Tax Agency (Hacienda) failed to prove Shakira was a fiscal resident in 2011. Under Spanish law an individual must spend more than 183 days in the country to generate tax obligations. However the court found that the singer’s maximum possible stay during that year was just 163 days.
In 2011 Shakira was primarily engaged in a gruelling global tour that involved 120 concerts across 37 different countries. Furthermore the magistrates ruled she lacked the necessary economic or family ties to Spain at the time to warrant domestic taxation. The court explicitly dismissed the Tax Agency’s argument that her burgeoning romance with former FC Barcelona footballer Gerard Pique constituted a legal marital bond.
As a result of the ruling Hacienda must return the €55 mln it originally seized from the singer. Her legal team estimates that the final payout will easily exceed €60 mln once all delay interest and legal costs are factored in.
A message to the tax agency
Following the verdict Shakira released a fiery statement condemning the authorities and highlighting the severe mental toll the eight-year legal ordeal has taken on her.
The singer went on to accuse the tax agency of leaking and distorting information to use her public profile as a «threatening message» to other taxpayers. She expressed hope that her legal victory would set a precedent to protect ordinary citizens who are frequently «abused and crushed» by a system that presumes guilt and forces people to prove their innocence from a place of financial ruin.
Separate from previous settlements
This latest victory pertains exclusively to the 2011 administrative dispute. It is entirely separate from the high-profile criminal tax fraud case covering the years 2012 to 2014. In November 2023 Shakira reached a settlement with Spanish prosecutors regarding that specific period to avoid a highly publicised trial in Barcelona. As part of that deal she accepted a suspended three-year prison sentence and paid a €7.3 mln fine.
Another criminal case regarding the 2018 fiscal year was previously archived and moved to the administrative sphere. The singer formally relocated to Miami with her children in early 2023 where she now maintains her fiscal residence.
The Spanish Tax Agency still has the option to appeal this latest ruling to the Supreme Court.
