Spain's National Court Orders Tax Agency to Repay Shakira €60 Million — Ending Eight-Year Dispute

Spain's National Court (Audiencia Nacional) has ruled in favour of Shakira in her case against Spain's Tax Agency (AEAT), finding that it had wrongly imposed large fines on the Colombian singer in 2021. An eight-year dispute has ended in a complete victory for the artist — the court has ordered the tax authority to return €60 million to her, plus interest and legal costs.

The tax authority had tried to prove that Shakira spent at least 183 days in Spain in 2011 and had thereby become a tax resident, making her liable for taxes in Spain. The court found that this had never been demonstrated. In 2011, Shakira was on a world tour, giving 120 concerts in 37 different countries. She had no home in Spain, no children here, and her business operations were never based in the country. The court also found that the singer's companies were legitimate and involved no tax avoidance schemes.

The ruling states that "it has also not been proven that the main centre or base of her activities or economic interests, directly or indirectly, is located in Spain. On the contrary, the business network attributed to the claimant is based outside national territory, as is the greater part of her economic activity."

Particularly notable was the court's decision to award legal costs against AEAT — a step Spanish courts take only in cases where a state body's accusations are manifestly unfounded.

"After more than eight years of brutal public humiliation, orchestrated campaigns to destroy my reputation, and countless sleepless nights that ultimately affected my health and the well-being of my family, the National Court has finally set things right," the singer said.

Shakira hopes the ruling will set a precedent for the tax authority and "serve the thousands of anonymous citizens who every day face harassment and pressure from a system that presumes their guilt and forces them to prove their innocence, while facing financial and emotional ruin."

In November 2023, Shakira separately reached a deal with prosecutors to avoid a trial in Barcelona over accusations of failing to pay €14.5 million in income tax in Spain between 2012 and 2014. Under the agreement, she admitted guilt and paid a fine of half the amount owed — more than €7.3 million.