The singer Shakira has won a landmark £50 million tax refund from Spanish authorities, after a British tax tribunal ruling was cited as a binding precedent. The decision, announced yesterday by the Spanish High Court of Justice, hinges on a key principle of residency law: the 183-day rule. Under Spanish tax legislation, individuals present in the country for more than 183 days in a calendar year are considered tax residents and thus liable for full taxation.
Shakira’s legal team argued that her international touring schedule kept her physically absent from Spain for sufficient periods, citing the UK tribunal’s interpretation in the case of *HMRC v. George Michael* (2016), which established that days spent in transit or for brief professional engagements do not count toward the residency threshold. The Spanish court accepted this reasoning, ruling that Shakira’s presence in Spain during the disputed years (2011-2014) fell short of the 183-day limit when accounting for her US tours and recording commitments in the Bahamas.
The refund covers overpaid income tax and penalties, plus accrued interest. This outcome represents a substantial financial victory for the 47-year-old Colombian artist, who has faced multiple tax controversies in Spain since 2018. It also sets a significant precedent for international entertainers and sportspeople who split time across jurisdictions.
Spanish tax authorities are reportedly considering an appeal to the Supreme Court, but legal experts suggest the reliance on a consistent EU-wide interpretation of the 183-day rule makes a successful challenge unlikely.
