Spain ordered to refund Shakira around €55 million as tax agency prepares appeal
The Spanish tax authorities have been ordered to refund approximately €55 million to Shakira, although the tax agency has confirmed it will appeal the ruling to the Supreme Court.
Spain’s National Court upheld the singer’s appeal against a decision by the Tax Agency and the Central Economic-Administrative Court (TEAC), ruling that Shakira was not a tax resident in Spain in 2011. As a result, the court annulled the tax assessment and penalty imposed by the Spanish tax authorities for income tax and wealth tax for that year, amounting to around €55 million.
In its ruling, the court stated that both the tax assessment and the penalties were unlawful, as they were based on the assumption that the singer had tax residency in Spain during the 2011 fiscal year — something that was not proven.
The court determined that Shakira spent 163 days in Spain in 2011, below the 183-day threshold required to establish tax residency under Spanish law. Since the Tax Agency could not demonstrate otherwise, the assessment was annulled.
The ruling also clarified that the duration of absence cannot be considered sporadic if it exceeds the legal threshold, reinforcing the criteria for determining habitual residence.
The case is limited exclusively to the 2011 fiscal year, meaning later tax settlements are not affected by this decision.
Following the ruling, Spain’s tax authority confirmed it intends to request that the Public Prosecutor’s Office appeal the decision before the Supreme Court.
