SHARE
COPY LINK

TAXES

Shakira compares Spain’s tax office to ‘Spanish Inquisition’

Colombian pop star Shakira accused Spain's tax office of confiscating all the income she earned when she lived there, comparing the institution to "the Inquisition" in a letter published Wednesday in Spanish daily El Mundo.

Shakira compares Spain's tax office to 'Spanish Inquisition'
Colombian singer Shakira during a concert in July 2024. (Photo by CHARLY TRIBALLEAU / AFP)

The “Hips Don’t Lie” singer reached a settlement in 2023 to avoid a trial in Barcelona over alleged tax fraud.

“The Spanish state kept more than all my income for those years,” she wrote in her letter to El Mundo.

“It may seem incomprehensible, but for me, the Spanish decade was a lost decade financially, and not because I worked little, as everyone knows,” she added.

Shakira settled with prosecutors on the opening day of her trial in Barcelona in November 2023 over charges she had defrauded tax authorities of €14.5 million ($16 million) earned between 2012 and 2014.

As part of the deal, she accepted the charges in exchange for paying a fine of nearly €7.8 million to avoid serving time in jail.

At the time she explained she had settled “with the best interest of my kids at heart”. She needed “to move past the stress and emotional toll of the last several years” and focus on her career, she said.

In May 2024 a Spanish court said it had shelved a second probe into alleged tax fraud by Shakira concerning her 2018 income tax return, ending her legal problems in Spain.

Shakira now lives in Miami with her two sons after splitting from star footballer Gerard Piqué, who at the time played for Barcelona.

A public ‘burning’

In her letter to El Mundo, she accused Spain’s tax office of being more interested in “burning her in public” than listening to her arguments.

“You don’t solve things by burning people at the stake like in an Inquisition trial,” the 47-year-old added.

As she had argued to the court, the singer once again denied that she lived in Spain for more than 183 days a year between 2012 and 2014, the threshold above which a person is considered a taxable resident.

Spain’s tax office went through her social media posts to gather evidence that she had in fact been in Spain for over 183 days per year. Its lawyers summoned dozens of witnesses, including her hairdresser and neighbours to back their case.

Spain has in recent years cracked down on celebrities such as Argentine football star Lionel Messi and Portugal’s Cristiano Ronaldo, for unpaid taxes.

Both players were convicted of evasion and received prison sentences that were waived for first-time offenders.

Member comments

Log in here to leave a comment.
Become a Member to leave a comment.

MONEY

‘Fewer Lamborghinis’: Spain’s PM aims to tax the super-rich more 

Spanish Prime Minister Pedro Sánchez has announced that his government is planning higher taxes for those "with enough money to live 100 lives", which could mean a higher income tax than the current maximum of 47 percent.

'Fewer Lamborghinis': Spain's PM aims to tax the super-rich more 

Sánchez kicked off the political year on Wednesday September 4th with a press conference in which he announced “new measures aimed at limiting the disproportionate privileges that certain elites in the country have and benefit from.”

“We are going to tax those who already have enough money in the bank to live a hundred lives,” Sánchez told journalists at the Cervantes Institute.

“We will do this, I repeat, not to harm millionaires, but to protect the middle and working classes from a system that continues to be extraordinarily unfair,” the PSOE leader said.

For Sánchez, “regardless of what some people think, Spain will be a better country if it has more electric cars, made in Spain, more public buses and, therefore, more public transport and fewer Lamborghinis.”

According to the Spanish PM, a more progressive tax system will be one of the three main axes that the left-wing coalition government will develop in economic matters in this new political year, with taxes “that will increase more for those who have more.”

The highest income tax (IRPF) bracket is currently 47 percent, for those earning above €300,000 a year. People earning between €60,000 and €299,999 have an income tax rate of 45 percent.

The Socialist-led government also introduced the so-called ‘millionaire’ or ‘solidarity’ tax in 2022, a levy on people worth more than €3 million (it’s not a tax on income but rather on assets and holdings). There is also a wealth tax which varies based on the region and the residency status.

READ ALSO: How wealthy people in Spain are avoiding the millionaire tax

Sánchez has not yet specified how much income is ‘enough to live a hundred lives’, nor if the planned measures will include higher-income earners than aren’t millionaires but have above average salaries. 

In Spain, there are 5 million people who earn above €3,673 gross a month, a figure from the French Observatory of Inequalities (relating to Spain) and cited in Forbes as being the threshold for being classified as ‘rich’ in Spain.

When Spain’s Economy Minister Carlos Cuerpo was asked on Onda Cero radio station to disclose more about what the Spanish premier was planning, he hinted the main focus will be the super-rich. 

For political opponent and far-right Vox leader Santiago Abascal, Sánchez’s aim is “destroying the middle classes” rather than having anything against “Lamborghinis” and the wealthy.

Similarly, the country’s right-wing media has been critical with the PM’s announcement, claiming that he wants to “kick the rich out of Spain” or distract from increasing poverty in the country.

People with incomes above €600,000 a year represent only 0.07 percent of the population in Spain, contributing around 7.57 percent of taxes to public coffers.

On the other hand, the middle classes – those with an income between €30,000 and €60,000 – make up around 21 percent of the population and their taxes add up to 36.8 percent of the total. 

SHOW COMMENTS