Spanish court clears Shakira of tax evasion charges for 2011

A Spanish court has cleared singer Shakira of tax evasion charges relating to the 2011 tax year, ruling that the authorities failed to prove she was a tax resident of the country at that time. Under Spanish law, an individual is considered a tax resident if they spend more than 183 days in the country, a threshold the tax office did not substantiate in this case. The court ordered the Spanish Treasury to refund more than 60 million euros to the artist, which includes the 55 million euro fine imposed in 2021 plus accrued interest. The Spanish tax authorities had previously argued that her relationship with footballer Gerard Pique and her professional activities established her residence in Spain. The court stated that the original fines were illegal because they were based on an unproven assumption of tax residency. The decision does not impact other tax disputes involving the artist for years after 2011. This ruling may still be appealed to the Supreme Court. The singer's lawyer, Jose Luis Prada, criticized the eight-year process, citing a lack of administrative rigor.