Pop star Shakira has struck a last-minute deal on the opening day of her tax fraud trial in Barcelona, ending a five-year legal battle and avoiding the risk of prison. The singer, who had maintained her innocence, accepted an agreement with prosecutors and acknowledged six counts of failing to pay the Spanish government €14.5 million ($15.8 million) in taxes between 2012 and 2014. As part of the deal, Shakira will receive a suspended three-year sentence and pay a fine of €7.3 million ($8 million). She will also pay an additional fine of €432,000 ($472,000) to have her sentence waived.
While the trial was expected to run for several weeks and involve over 100 witnesses, it was called off after just eight minutes. Previously, prosecutors had sought an eight-year and two-month prison sentence, along with a fine of €24 million ($26 million) for the singer. However, the last-minute settlement has now placed Shakira on record as being guilty of tax fraud, which may impact a separate pending case involving tax officials.
The case centered around the question of Shakira's residency during the period under investigation. Prosecutors argued that although her official residence was in the Bahamas, the Colombian singer lived for more than half of the period in Spain and should have paid taxes on her worldwide income there. The Bahamas has significantly lower tax rates compared to Spain.
Shakira, known for her hits in Spanish and English across various musical genres and winner of multiple Grammy and Latin Grammy awards, briefly appeared in court before accepting the deal. She expressed her desire to fight the charges but ultimately prioritized her family, career, and peace of mind. The singer stated that she needed to move on from the stress and emotional toll of the past several years and focus on her children and future career opportunities.
Notably, Shakira had previously rejected a settlement offer from prosecutors in July 2022, stating her belief in her innocence and faith in the legal process. However, the details of that initial offer were not disclosed. The singer had been implicated in the "Paradise Papers" leaks, which exposed off-shore tax arrangements of prominent individuals, including other musical celebrities like Madonna and U2's Bono.
Shakira's defense team, Molins Defensa Penal, argued that she had not spent more than 60 days a year in Spain during the period in question, asserting that she could not be considered a fiscal resident. The defense emphasized her extensive international touring commitments and her participation in the television show The Voice in the United States. Nevertheless, Spanish prosecutors maintained their stance, leading to the trial.
Although, Shakira's immediate legal worries concerning the 2012-2014 tax period may be over, she still faces a separate investigation. Spanish state prosecutors charged her in September with alleged tax evasion of €6.7 million ($7.2 million) on her 2018 income. They accused her of using an offshore company based in a tax haven to avoid paying her taxes.
Notably, Spain has been rigorous in cracking down on tax evaders, including prominent soccer stars such as Lionel Messi and Cristiano Ronaldo in recent years. Both players were found guilty of tax evasion but avoided prison time due to suspended sentences.
Shakira, whose full name is Shakira Isabel Mebarak Ripoll, has two children with Barcelona soccer star Gerard Piqué. The couple ended their 11-year relationship in 2021, and since then, she has been residing in Miami. Expressing gratitude to her Spanish fans for their support during the recent Latin Grammy Awards, Shakira now seeks to put the legal case behind her and focus on her family and future career endeavors.