A Spanish court has ordered the country’s tax authority to return more than €55 million (£47 million) to Colombian singer Shakira, concluding that officials had incorrectly imposed fines related to her 2011 tax status. The Audiencia Nacional in Madrid ruled that the tax agency failed to prove she had spent the minimum 183 days in Spain that year required to establish tax residency. Instead, the court found that Shakira’s stay amounted to 163 days, and noted that any arguments regarding her residency in the Bahamas—then considered a tax haven—were irrelevant to the decision.

This ruling pertains solely to the 2011 tax case and marks a reversal in a long-standing dispute. The court ordered the tax agency to refund the amounts it had collected for that year, including interest and costs. The tax authority retains the option to appeal the decision in Spain’s Supreme Court.

Shakira, who now lives in Miami, has been involved in multiple legal battles over her tax obligations in Spain. In November 2023, she accepted a plea deal with Spanish prosecutors regarding allegations of unpaid taxes from 2012 to 2014. She acknowledged committing six counts of tax fraud for those years, agreeing to a suspended three-year prison sentence and fines totaling more than €7.7 million. The deal was reached to avoid a trial in Barcelona and required her to pay 50% of the disputed amount, alongside additional sanctions.

Throughout the process, Shakira maintained her innocence for the 2011 allegations, alleging that Spain’s tax agency had subjected her to a damaging and public smear campaign. Following the latest court ruling, she expressed relief that the justice system recognized no fraud had occurred in 2011. She also spoke about the personal toll the tax disputes had taken on her and her family, citing years of reputational harm and stress.

The legal disputes surfaced amid Shakira’s relationship with former FC Barcelona player Gerard Piqué, who was linked to her residency status in Spain. The outcome of the 2011 case is significant, as it clarifies her tax obligations for that year but leaves unresolved questions about her fiscal responsibilities in subsequent years covered by her settlement.

The cases highlight ongoing challenges in determining residency and tax liability for high-profile individuals with international careers and residences. Spain’s tax agency has faced criticism for its approach in handling high-profile taxpayers, while authorities emphasize the importance of enforcing tax laws fairly.