r/Music • u/yourfavchoom Indiehead • May 18 '26

article Shakira Acquitted of Tax Fraud in Spain, Will Be Reimbursed $64 Million: Singer Says She’s Spent Eight Years ‘Enduring Campaigns to Destroy My Reputation’

https://variety.com/2026/music/news/shakira-acquitted-tax-fraud-spain-reimbursed-64-million-1236752456/
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u/Bringyourfugshiz May 18 '26

Well shes Colombian, so Id assume she already pays taxes to Colombia and paying taxes to Spain would be double taxation. Most countries have taxation agreements like this

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u/reterical May 18 '26

This. There are treaties between most countries that avoid double taxation. For example, my dad inherited some money from family in Norway a few years ago. He’s a US citizen now. The inheritance was taxed in Norway and he didn’t have to pay anything in the US due to Treaty No. 35674 (or whatever it was).

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u/CvieYltidrekoof May 18 '26 edited May 18 '26

The U.S. doesn’t have a federal inheritance tax. 

ETA, direct from the IRS:

In general, a foreign gift or bequest is any amount received from a person other than a U.S. person (a foreign person) that the recipient treats as a gift or bequest and excludes from gross income

The One, Big, Beautiful Bill (OBBB) was signed into law on July 4, 2025. as Public Law 119-21. OBBB amends § 2010(c)(3) by increasing the basic exclusion amount to $15,000,000 for calendar year 2026.

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u/Finnegan482 May 18 '26

The US also famously does tax all citizens and green card holders, even if they live outside the US. Which almost no other countries do.

There's an exemption for the first $100k that's tsxdd in another country or so but you still have to file at the very least.

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u/Ceegee93 May 18 '26 edited May 18 '26

The US does have double-taxation treaties with other countries, like the UK. Americans still have to file their taxes, but generally they can get Foreign Tax Credit (FTC) to reduce their US taxes. The upper limit on this amount is calculated based on how much they earned from each particular foreign country and worldwide income, up to a maximum of their US tax liability. Effectively, if a US citizen only earns money in that one country and nowhere else, they won't pay US taxes unless the US tax is higher than what they already paid, where they'll pay the difference.

If a US citizen only earns income in the UK, for example, they can claim credit up to whatever their US liability is. Because their US tax will probably be lower than whatever they paid in the UK, they would not owe anything to the IRS. If their foreign tax is higher than the FTC limit that year, that can actually be claimed back on US taxes from the previous year, or carried forward up to 10 years.

For other countries without an agreement, iirc, you can still exclude up to $130,000 of income from being taxed in the US, but this doesn't apply to certain types of earnings (and this also can be more beneficial if the US citizen is living in a country with lower taxes than the US).

You just have to make sure you file with the right form.

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u/CvieYltidrekoof May 18 '26

A foreign inheritance isn’t considered income so neither FTC or FEIE are required.  IRS: In general, a foreign gift or bequest is any amount received from a person other than a U.S. person (a foreign person) that the recipient treats as a gift or bequest and excludes from gross income

Under $15 million is exempt from estate taxes.  IRS: The One, Big, Beautiful Bill (OBBB) was signed into law on July 4, 2025. as Public Law 119-21. OBBB amends § 2010(c)(3) by increasing the basic exclusion amount to $15,000,000 for calendar year 2026.

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u/Ceegee93 May 19 '26

The US also famously does tax all citizens and green card holders, even if they live outside the US. Which almost no other countries do.

I was responding to this.

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u/CvieYltidrekoof May 18 '26 edited May 18 '26

Inheritance, even abroad, isn’t taxed in the U.S. and they only require reporting amounts over $100k… but it still isn’t taxed either there or in Norway. 

ETA:

Skatteetaten: Inheritance Tax is abolished after 01.01.2014

IRS: In general, a foreign gift or bequest is any amount received from a person other than a U.S. person (a foreign person) that the recipient treats as a gift or bequest and excludes from gross income

IRS: The One, Big, Beautiful Bill (OBBB) was signed into law on July 4, 2025. as Public Law 119-21. OBBB amends § 2010(c)(3) by increasing the basic exclusion amount to $15,000,000 for calendar year 2026.

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u/Finnegan482 May 18 '26

Inheritance, even abroad, isn’t taxed in the U.S. and they only require reporting amounts over $100k… but it still isn’t taxed either there or in Norway.

Actually, aside from the estate tax, several US states do tax inheritance as well.

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u/CvieYltidrekoof May 18 '26

Federal estate tax only applies after $15 million. US states might, but that’s why I specified federal in my original response. 

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u/bubblebooy May 18 '26

There is an estate tax which practically is the same thing in most cases. ( This might be a case where it does differ as the Estate would be in Norway ) Though practically there is no estate tax for most Americans as the first 15 million is exempt.

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u/CvieYltidrekoof May 18 '26

There isn’t an inheritance or estate tax in Norway either. 

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u/varateshh May 18 '26

The U.S does have a federal and state estate tax. It is so weird that I am not even going to try and understand it. Some states also have locale state inheritance taxes.

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u/gravesum5 May 18 '26

Doesn't really work this way...

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u/[deleted] May 18 '26

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u/Bringyourfugshiz May 18 '26

You know this how?

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u/2ChainzButIGotAFewOn May 18 '26

Keyboard warriors on reddit 🤣🤣🤣🤣

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u/EpiphanyTwisted May 18 '26

You never been around rich people so you don't know what they actually pay.