Colombian pop sensation Shakira has reached a settlement with Spanish prosecutors, bringing an end to a tax fraud case just as her trial was set to commence. The singer has agreed to pay a €7.5m (£6.5m) fine, averting the potential eight-year jail term and €23.8m (£20.8m) fine that prosecutors had sought if she were found guilty.

The allegations, totaling €14.5m (£12.7m), were related to tax fraud during the years Shakira spent in Spain, and the trial was scheduled to take place in a Barcelona court. Shakira, consistently denying any wrongdoing, emphasized that she chose to settle “with the best interest of my kids at heart.”

In a detailed statement, the artist stated that her decision was influenced by her children’s desire not to witness their mother enduring personal sacrifices in the legal battle. Despite initially rejecting a settlement offered by prosecutors and opting for a trial, Shakira acknowledged the toll the case had taken on her well-being and decided to put an end to the matter.

Expressing her commitment to doing what’s right and setting a positive example, Shakira lamented the Spanish tax authorities’ pursuit of the case, likening it to similar situations involving professional athletes and high-profile individuals. While she was prepared to defend her innocence in court, she chose resolution to focus on her children and future career opportunities.

The tax dispute centered around Shakira’s residency status between 2012 and 2014. Prosecutors alleged that she was living in Spain during that period but officially listing her residence elsewhere. According to Spanish law, spending over six months in the country designates an individual as a resident for tax purposes. Shakira contested that Spain wasn’t her primary residence during those years.

The controversy heightened when prosecutors claimed she purchased a home in Barcelona in 2012, serving as the family residence for her and her then-partner, Gerard Piqué, a footballer for Barcelona. Shakira’s legal team argued that, until 2014, a significant portion of her income came from international tours, and she spent extended periods outside of Spain.

Shakira declared Spain as her tax residence in 2015 and emphasized having paid €17.2m (£15m) in taxes with no outstanding debts. The resolution comes amid a separate tax evasion case in 2019, where Piqué was fined €2.1m (£1.8m) by the Spanish national court for actions between 2008 and 2010. The couple announced their separation in June after 11 years together, sharing two sons aged seven and nine.

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