The singer has agreed to a €7.5m (£6.5m) fine; had she been proven guilty, prosecutors would have sought eight years in prison and a €23.8m (£20.8m) fine.
A Barcelona court had previously indicted her on charges of tax fraud totaling €14.5 million (£12.7 million).
She stated in an extensive statement that her children “do not wish to witness their mother jeopardise her own health in this struggle.”
In the past, the performer declined a plea bargain presented by prosecutors, choosing to proceed with the trial instead.
She stated, “I have endeavoured to do the right thing and serve as a positive example for others throughout my entire career.”
“Unfortunately, tax authorities in Spain pursued a case against me, as they have done against numerous professional athletes and other high-profile individuals. Despite these efforts, for years, depleting the energy, time, and tranquility of those individuals.”
Although I had every intention of presenting a defence in court that my solicitors were certain would have resulted in a favourable verdict, I have now decided to settle this matter for the sake of my children’s welfare. They do not want to witness their mother jeopardise her own physical health in the pursuit of this dispute.
She further stated that she needed to overcome the emotive and stress-ridden past few years and concentrate on the things she truly values: her children and the forthcoming opportunities in her professional life.
Controversy regarding residency
Prosecutors alleged that Shakira resided in Spain between 2012 and 2014, despite designating another address as her official place of residence. Her residency status was the central issue in this dispute.
Persons who reside in Spain for a duration exceeding six months are classified as residents for tax intentions, as per Spanish legislation. Shakira, however, claims that Spain was not her primary residence at the time.
Prosecutors published a document in July alleging that she and her then-partner, Barcelona footballer Gerard Piqué, purchased a property in Barcelona in 2012. The document stated that the residence was intended for the couple as a family.
Prior to 2014, the majority of her income, according to her attorneys, was generated by international travels, and she spent significant amounts of time outside of Spain.
“The Spanish tax authorities began to salivate upon learning that I was in a relationship with a Spanish national.” “It is irrefutable that they desired that money regardless of the circumstances,” she told Elle magazine.
Shakira officially designated Spain as her domicile for tax purposes in 2015. She reported paying €17.2 million (£15 million) in taxes and having no outstanding debts.
A separate case in 2019 involved the Spanish national court fining Mr. Piqué €2.1 million (£1.8 million) for tax evasion from 2008 to 2010.
The couple announced their separation after eleven years of marriage in early June. They are the joint parents of two sons, ages seven and nine.