The Colombian singer Shakira achieved an important legal victory in Spain after the National Court annulled a tax sanction corresponding to the 2011 fiscal year and ordered the refund of more than 55 million euros, in addition to the accumulated legal interest.
The decision represents one of the most significant rulings in the extensive dispute between the artist and the Spanish Tax Agency regarding her tax residency during the years she was in a relationship with former footballer Gerard Piqué.
The Justice concluded that Shakira did not reside long enough in Spain
The central issue of the conflict was to determine whether the singer should be taxed in Spain for her global income during 2011.
Spanish legislation establishes that a person is considered a tax resident when they stay in the country for more than 183 days a year.
However, the court concluded that the Spanish authorities only managed to prove Shakira's presence in Spanish territory for 163 days, insufficient to consider her a tax resident.
For that reason, the National Court ruled:
to annul the settlement made by the Tax Agency
to refund the amounts collected
to add legal interest on the withheld money
The refund exceeds 55 million euros, equivalent to more than 64 million dollars.
Shakira's tax conflict in Spain
Shakira's legal troubles with the Tax Agency began years ago and were mainly linked to her international movements and her residency between the Bahamas and Barcelona.
The artist always maintained that:
she permanently settled in Barcelona only at the end of 2014
