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Shakira Secures £50 Million Tax Refund from Spanish Authorities

A Spanish court has mandated a tax refund of approximately £50 million to singer Shakira, ruling that the taxes were collected improperly. The decision comes after an eight-year battle concerning her tax residency.

Source: bbc.co.uk1 min read
Shakira Secures £50 Million Tax Refund from Spanish Authorities
Image via bbc.co.uk

In brief

Shakira has won a £50 million tax refund from Spain's treasury after a court ruled that improper claims were made regarding her tax status. The ruling comes amid a broader context of scrutiny and legal challenges surrounding celebrity tax obligations in Spain, where Shakira previously faced accusations of tax fraud. The court's finding indicates that the tax authorities could not establish her as a tax resident for the disputed year, providing significant relief in her long-standing legal battles.

A Spanish court has ordered the country's tax authority to refund €55m (£48m, $64m) to singer Shakira after ruling that the money was improperly collected in a dispute over her taxes.

The national high court has acquitted the Colombian singer of tax fraud and ordered the Treasury to repay the money plus interest to her. It said tax authorities had failed to prove she spent 183 days in Spain in 2011 - the minimum required for residents to pay personal income tax there.

Shakira expressed relief, stating the court had finally set the record straight after enduring years of public scrutiny and damage to her reputation. The repayment includes about €24m (£21m) in income tax and nearly €25m (£22m) in fines imposed by tax authorities for what they deemed a very serious infringement.

The tax agency announced plans to appeal to the Supreme Court, indicating that no payment will occur until a final ruling is made. The ruling reflects on broader issues regarding taxation for expatriates and celebrities in Spain, a country that has seen multiple high-profile tax cases involving foreign stars.

According to the court, Shakira resided in Spain for only 163 days during the fiscal year in question, thereby falling short of the residency requirement for tax obligations.

This legal matter is one of several cases Shakira has faced from Spain's tax agency. In a different case earlier this year, she reached a settlement for tax fraud covering the years 2012-2014, having accepted six charges and paid a €7.5m fine.

Further investigations into her tax payments beyond 2011 have been dropped due to a lack of evidence, signaling a potential end to her ongoing struggle with Spain's tax authorities. As Shakira is set to conclude her tour in Madrid, she continues to make headlines in the music industry, including participation in major events like the FIFA Men's World Cup final alongside global stars.

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