In a surprising turn of events, pop star Shakira struck a last-minute deal to avoid a tax fraud trial in Barcelona, thus ending nearly five years of maintaining her innocence. The trial, which would have included over 100 witnesses, was canceled after just eight minutes when Shakira accepted an agreement with prosecutors.
The agreement acknowledges six counts of failing to pay the Spanish government 14.5 million euros (about $15.8 million) in taxes between 2012 and 2014. In return, Shakira will receive a suspended three-year sentence and a fine of 7 million euros ($7.6 million).
Shakira had faced the possibility of an eight-year, two-month prison sentence and a fine of 24 million euros ($26 million) before the last-minute deal. The charges revolved around allegations that she spent more than half of the period between 2012 and 2014 in Spain, necessitating the payment of taxes on her worldwide income in the country.
The case raised questions about Shakira’s residency during that time, as her official residence was in the Bahamas, where tax rates are significantly lower than in Spain. The trial was expected to delve into whether she met the criteria for fiscal residency in Spain, considering her extensive travel and global commitments.
Shakira, who had previously turned down a deal offered by prosecutors in July 2022, cited her family, career, and peace of mind as reasons for accepting the current agreement. In a statement, she expressed her desire to put an end to the stress and emotional toll of the past several years and focus on her children and career opportunities.
The pop star, known for hits in both Spanish and English, emphasized her commitment to resolving the matter with her children’s best interests at heart. The trial’s cancellation comes after a three-year investigation and numerous legal proceedings, including an unsuccessful appeal by Shakira to have the case dismissed.
This tax case is not Shakira’s only legal challenge, as she faces a separate investigation by Spanish state prosecutors for alleged tax evasion of 6.7 million euros in 2018. The prosecutors accuse her of using an offshore company in a tax haven to evade taxes, a charge similar to those faced by other celebrities, including Lionel Messi and Cristiano Ronaldo.
Shakira’s legal team had argued that she established fiscal residency in Spain in 2014 when her oldest child enrolled in school in Barcelona. The recent deal spares Shakira from potential imprisonment, a fate that has befallen other high-profile figures found guilty of tax evasion in Spain. The resolution of this case marks a pivotal moment for the pop star, who has expressed gratitude to her fans in Spain for their support through the legal challenges.