As part of the deal, she accepted the charges and a fine of 50% of the amount owed, more than 7.3 million euros.
She also accepted another fine of 438,000 euros to avoid a three-year prison sentence, the judge said during the trial's first hearing.
"Do you recognise the facts and conform with the new penalties that have been requested?" asked Judge Jose Manuel del Amo Sanchez. "Yes," Shakira responded.
Wearing a pink suit, matched with a pink handbag and sunglasses, she arrived minutes before 10 a.m. accompanied by her lawyers, amid a media frenzy. On Thursday night Shakira won two Latin Grammy awards in Seville.
Previously, the 'Hips Don't Lie' singer, who also has a second tax fraud investigation pending with Spanish authorities, had vowed to fight what she called false accusations.
The prosecutor's office was seeking an up to eight-year prison term and to claim back the taxes it says she owes.
It alleged that Shakira spent more than half of each of the years in question in Spain and was therefore ordinarily resident in the country. It also said that a Barcelona property she bought in May 2012 served as a family home.
Shakira, 46, lived with former Barcelona and Spain soccer star Gerard Pique for 11 years and the couple have two children. The singer, whose full name is Shakira Isabel Mebarak Ripoll, moved to Miami after their separation.
Spanish authorities have pursued other major celebrities over tax evasion including soccer players such as Portugal's Cristiano Ronaldo, Argentina's Lionel Messi and Brazilian-Spanish player Diego Costa. All settled and paid large fines.
Bayer Leverkusen coach Xabi Alonso refused to settle and eventually won a trial against the tax agency. Spain's Supreme Court last month upheld his acquittal.
In August, after having recently been in Ibiza, where she apparently met up with Formula One legend Lewis Hamilton, Shakira managed to give the press the slip this week and spent a few nights in Mallorca.
Despite being one of the most sought after women at the moment, Look, the Okdiario website, has exclusively revealed that the singer spent a few days in Mallorca and, for once, she posted nothing about her trip on any of her social media platforms.
It has also been revealed that the singer left the island by private jet on Wednesday morning apparently bound for the United States where she is setting up a new permanent home with her two children.
Her relationship with Lewis Hamilton also remains a mystery.
The couple have not yet made a statement, but sources close to them have - as is often the case - said that the only thing Shakira and Hamilton share is a beautiful friendship that goes back years.
“They are close friends. There is no romantic connection,” people close to the F-1 world champion told The Sun.
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