The Spanish Audiencia Nacional annulled fiscal sanctions against singer Shakira and ordered the tax agency to refund more than 60 million euros [1].

The ruling represents a significant legal victory for the Colombian artist in a long-running dispute over her tax residency. It challenges the Spanish state's ability to prove where high-net-worth individuals reside for tax purposes during peak earning years.

The court focused on the year 2011, which was described as the most lucrative year of the singer's career [3]. To establish tax residency in Spain, the tax agency must prove an individual spent more than 183 days in the country during a calendar year. However, the court found that the state could only verify 163 days of presence for Shakira in 2011 [2].

Because the agency failed to meet the residency threshold, the court ruled that the sanctions applied to that period were invalid. Consequently, the Spanish Tax Agency, known as Hacienda, must return more than 60 million euros [1]. The court also ruled that the agency will be responsible for paying the legal costs associated with the proceedings [1].

Reports regarding the exact number of disputed days have varied. While some accounts mentioned a 20-day discrepancy, the court's findings specifically credited 163 days of presence in the country [2].

Shakira had previously defended her position by arguing that her primary residence, and professional activities, were not centered in Spain during the period in question [4]. The ruling confirms that the evidence provided by the state was insufficient to override those claims.

“Hacienda tendrá que devolverle unos 60 millones de euros”

This ruling underscores the strict evidentiary requirements Spanish courts apply to tax residency disputes. By failing to prove the 183-day threshold, the state lost its claim to taxes from one of the singer's most profitable years, signaling that circumstantial evidence of residency is insufficient when faced with precise day-counting in court.