Colombian singer and artist Shakira Isabel Mebarak Ripoll, “Shakira,” recently received significant tax relief from Spain’s National Court.
Known as the “Queen of Latin Music,” Shakira is a multi-talented professional with four Grammy Awards and 15 Latin Grammy Awards. She has also been the longtime investigative target of Spain’s tax agency, which has pursued tax fraud and tax evasion charges against her for tax reporting between 2011 and 2018.
A personal relationship did not indicate Shakira was a tax resident of Spain
In May of this year, Spain's National Court found that the tax agency had not proven its claim that Shakira had spent 183 days in the country in 2011. In Spain, physical residency of 183 days is required for being considered a Spanish tax resident. The tax agency was only able to prove Shakira was in the country for 163 days, regardless of her then-longtime personal relationship with soccer star Gerard Piqué. Their relationship lasted more than 10 years and ended in 2022.
Shakira also faced multiple tax proceedings during her time in Spain. In 2023, Shakira resolved a different tax case with authorities on the courthouse steps. Eight minutes prior to the beginning of her trial, Shakira agreed to pay $7.6 million and received a suspended sentence.
Beyond her music, Shakira also made headlines with other high net-worth individuals and celebrities when her collection of shell companies was publicly revealed in the Pandora Papers and the Paradise Papers.
The leak of these document collections continues to affect some of those whose offshore tax dealings were exposed, and prompted investigations and generated scrutiny. If you have concerns about tax fraud in the U.S., take some time to review our guide, Will I Be Charged with Criminal Tax Fraud?
Court refunds Shakira tax, penalties and interest
Spain's High Court ordered Spain to return money that had been improperly collected, plus interest. As noted in Rolling Stone, Shakira said, “After more than eight years of enduring brutal public targeting, orchestrated campaigns to destroy my reputation, and sleepless nights that ultimately impacted my health and my family’s well-being, the National High Court has finally set the record straight. There was never any fraud, and the Administration itself could never prove otherwise, simply because it wasn’t true.” The Court also found that Spain was not the “main center or base” of Shakira’s business activities.
In many countries, such as the U.S., the requirements for paying taxes are detailed and worth understanding for individuals spending significant time stateside. If you have concerns, speak with a tax professional or contact Robert J. Fedor, LLC at 440-250-9709. Our firm represents clients on issues involving tax fraud, allegations of tax evasion, and compliance risks throughout the U.S. and internationally.
