Spain: no prison for singer Shakira

Shakira escapes jail for tax fraud - 11th Dec 2023

Just before her trial was set to commence in a Barcelona court, Colombian pop icon Shakira has signed a deal with lawyers prosecuting on behalf of the Spanish government's tax authorities, pledging to surrender 22 million euros.

Spanish authorities consented to no longer seek an eight-year prison sentence for tax evasion, as long as the original amount owing - 14.5 million euros - was paid, and an additional fine of 50 percent. For a final 438,000 euros, Shakira avoided a 3 year sentence.

Prosecutors claimed the 46 year old music megastar had resided in her Barcelona property for over six months annually in the years 2012, 2013 and 2014, making her liable for Spanish income tax, a claim refuted by Shakira's defence, who declared her primary residence to be in the Bahamas.

Shakira maintained her innocence whilst accepting the settlement, justifying her decision by saying the last few years had taken their toll on herself and her children. “I have made the decision to finally resolve this matter with the best interest of my kids at heart.”

The pop idol had spent over a decade living with her partner and father of their two young sons – ex-Barcelona footballer Gerard Piqué – although after their separation in 2022, she and the boys relocated to Miami.

The multiple Grammy-award winning singer commented, "The Spanish tax authorities saw that I was dating a Spanish citizen and started to salivate. It's clear they wanted to go after that money no matter what."

This isn't Shakira's first financial scandal as in 2017, she was found to have stashed away 30 million euros in a company in Malta, where the corporate tax rate is infamously low, a procedure her attorneys insisted was legal.

The threat of jail time has resulted in similarly bitter settlements for other well-off celebrities, such as sports stars Diego Costa, Cristiano Ronaldo and Lionel Messi, also prosecuted for fraud.

Spain's strict tax enforcement is likely to be connected to the economic downturn suffered during the pandemic. The government's intent on giving a clear signal to well-off foreigners, warning them to pay if they stay.