Inside Shakira’s Tax Evasion Battle: Everything to Know About the Allegations, Trial and More

Credit: Vianney Le Caer/Invision/AP/Shutterstock

Inside Shakira's Tax Evasion Battle: Everything to Know About the Allegations, Trial and More

A sticky situation. Shakira is caught in the middle of a heated battle with Spanish authorities over the allegation that she failed to pay nearly $14 million in taxes. In 2018, prosecutors in the European country accused the "Hips Don't Lie" singer of withholding 14.5 million euro in taxes between 2012 and 2014. At the time, Shakira's official residence was listed in the Bahamas, but tax authorities claimed that she actually resided during the Catalonia region at the time, meaning she owed taxes to Spain. The Grammy winner has repeatedly denied the allegations, claiming that the Spanish government is attempting to make an example of her. "I didn’t spend 183 days per year [in Spain] at that time at all," the "She Wolf" songstress told Elle in September 2022. "I was busy fulfilling my professional commitments around the world. Second, I’ve paid everything they claimed I owed, even before they filed a lawsuit. So, as of today, I owe zero to them." [sendtonews type="float" key="CHMaL3rby2-2833419-14453"] Shakira also pointed out the similarities between her case and those of other celebrities who have run afoul of Spanish tax authorities. In 2017, for example, Cristiano Ronaldo was charged with evading nearly 15 million euro in taxes between 2010 and 2014. He was later sentenced to 23 months in prison, but avoided jail time after agreeing to pay a nearly 19 million euro fine. The investigation into Shakira's finances began after her name appeared in the Paradise Papers, a November 2017 document leak about offshore investments. The leak revealed that the Latin Grammy winner's “musical assets, intellectual property rights and trademarks” were held by a company based in Malta, which has been accused as operating as a tax haven. A lawyer for the musician told The Guardian at the time that the Maltese company “fulfills all legal requirements." Shakira has lived off and on in Spain for years, purchasing a home in Barcelona in 2012 with then-boyfriend Gerard Piqué. The Colombia native and the soccer star — who share sons Milan and Sasha — called it quits in June 2022 after 12 years together. "We regret to confirm that we are separating,” the duo said in a joint statement at the time. “For the wellbeing of our children, who are our highest priority, we ask that you respect their privacy.” In September 2022, Shakira admitted that the tax fraud allegations and her split from Piqué have caused one of the "most difficult, darkest hours" of her life. "It’s been tough not only for me, but also for my kids," she told Elle at the time. "Incredibly difficult." Keep scrolling for everything to know about Shakira's tax evasion battle.

Credit: Vianney Le Caer/Invision/AP/Shutterstock

Inside Shakira's Tax Evasion Battle: Everything to Know About the Allegations, Trial and More

A sticky situation. Shakira is caught in the middle of a heated battle with Spanish authorities over the allegation that she failed to pay nearly $14 million in taxes. In 2018, prosecutors in the European country accused the "Hips Don't Lie" singer of withholding 14.5 million euro in taxes between 2012 and 2014. At the time, Shakira's official residence was listed in the Bahamas, but tax authorities claimed that she actually resided during the Catalonia region at the time, meaning she owed taxes to Spain. The Grammy winner has repeatedly denied the allegations, claiming that the Spanish government is attempting to make an example of her. "I didn’t spend 183 days per year [in Spain] at that time at all," the "She Wolf" songstress told Elle in September 2022. "I was busy fulfilling my professional commitments around the world. Second, I’ve paid everything they claimed I owed, even before they filed a lawsuit. So, as of today, I owe zero to them." [sendtonews type="float" key="CHMaL3rby2-2833419-14453"] Shakira also pointed out the similarities between her case and those of other celebrities who have run afoul of Spanish tax authorities. In 2017, for example, Cristiano Ronaldo was charged with evading nearly 15 million euro in taxes between 2010 and 2014. He was later sentenced to 23 months in prison, but avoided jail time after agreeing to pay a nearly 19 million euro fine. The investigation into Shakira's finances began after her name appeared in the Paradise Papers, a November 2017 document leak about offshore investments. The leak revealed that the Latin Grammy winner's “musical assets, intellectual property rights and trademarks” were held by a company based in Malta, which has been accused as operating as a tax haven. A lawyer for the musician told The Guardian at the time that the Maltese company “fulfills all legal requirements." Shakira has lived off and on in Spain for years, purchasing a home in Barcelona in 2012 with then-boyfriend Gerard Piqué. The Colombia native and the soccer star — who share sons Milan and Sasha — called it quits in June 2022 after 12 years together. "We regret to confirm that we are separating,” the duo said in a joint statement at the time. “For the wellbeing of our children, who are our highest priority, we ask that you respect their privacy.” In September 2022, Shakira admitted that the tax fraud allegations and her split from Piqué have caused one of the "most difficult, darkest hours" of her life. "It’s been tough not only for me, but also for my kids," she told Elle at the time. "Incredibly difficult." Keep scrolling for everything to know about Shakira's tax evasion battle.

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What Are the Allegations Against Shakira?

Spanish prosecutors alleged in December 2018 that the "Whenever, Wherever" crooner failed to pay 14.5 million euro in taxes between 2012 and 2014. Shakira claimed her primary residence at the time was in the Bahamas, but authorities say she was living in Barcelona during this period, in a home she purchased with Piqué in May 2012. The singer, meanwhile, claims she moved to the Spanish city in 2015.

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How Has Shakira Responded?

The former Voice mentor has repeatedly denied any wrongdoing, claiming that she has already paid what she owed plus $3 million in interest. "Shakira has always cooperated and abided by the law, demonstrating impeccable conduct as an individual and a taxpayer, and faithfully following the counsel of PricewaterhouseCoopers, a prestigious and globally recognized tax firm," a rep for the singer said in a statement in July 2022. "Unfortunately, the Spanish Tax Office, which loses one out of every two lawsuits with its taxpayers, continues to violate her rights and pursue yet another baseless case. Shakira is confident that her innocence will be proven by the end of the judicial process."

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Will There Be a Trial?

A Spanish judge approved a trial in September 2022 after Shakira rejected a settlement deal with tax authorities. The court, based in the town of Esplugues de Llobregat, said the "Beautiful Liar" artist will face six counts of tax fraud. A trial date has not yet been set.  

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What Consequences Could Shakira Face?

In July 2022, Spanish prosecutors announced they are seeking an eight-year prison term for Shakira as well as a 23 million euro fine.

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Shakira's Response

In court documents obtained by TMZ in November 2022, Shakira reportedly described the Spanish government's case as a "smear campaign" against her. The pop star claimed that she wasn't a resident of Spain during the period in question and would only have had to pay taxes in the country if she lived there for 183 days of the year. Instead, she paid more than $10 million in taxes to the United States, where she was being paid to appear on The Voice. According to the documents, Shakira didn't change her tax residency to Spain until 2015.