State prosecutors, who had initially brought the allegations forward, are now saying “there is not sufficient evidence” of a possible fiscal crime.
It will be up to the investigating judge to decide whether to continue with the probe, and possibly recommend that the case be tried, or dismissed.
In a separate case, Shakira struck a deal in November with prosecutors whereby she acknowledged she had failed to pay Spanish government 14.5 million euros (about $15.6 million) in taxes between 2012 and 2014.
Shakira currently resides in Miami after having left Spain following her breakup with the now former soccer player Gerard Pique.